NV Energy Southern Nevada (NPC) 2020 Electric General Rate Case

NEVADA POWER COMPANY d/b/a NV Energy

BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

IN THE MATTER of the Application of NEVADA ) POWER COMPANY, d/b/a NV Energy, filed ) pursuant to NRS 704.110 (3) and (4), addressing its ) annual revenue requirement for general rates ) charged to all classes of customers. ) ______) Docket No. 20- 06____

VOLUME 9 of 25

Prepared Direct Testimony of:

OMAG Expense

Lisa Holder Danielle Lewis Deborah J. Florence

Revenue Requirements

Harold Walker III Bill Trigero Terry A. Baxter Eric Fox Mariya

Recorded Test Year ended December 31, 2019 Certification Period ended May 31, 2020 Expected Change in Circumstance Period ending December 31, 2020

Index

Page 2 of 247 Nevada Power Company d/b/a NV Energy

Volume 9 of 25 Testimony

Index Page 1 of 1

Description Page No. Prepared Direct Testimony Of:

OMAG Expense:

Lisa Holder 5 Danielle Lewis 82 Deborah J. Florence 98

Revenue Requirements:

Harold Walker III 108 Bill Trigero 160 Terry A. Baxter 199 Eric Fox 212 Mariya Coleman 241

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LISA HOLDER

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1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

2 Nevada Power Company d/b/a NV Energy Docket No. 20-06___ 3 2020 General Rate Case

4 Prepared Direct Testimony of

5 Lisa Holder 6 Revenue Requirement

7 8 I. INTRODUCTION, BACKGROUND, AND PURPOSE OF TESTIMONY 9 1. Q. PLEASE STATE YOUR NAME, OCCUPATION, AND BUSINESS

10 ADDRESS.

11 A. My name is Lisa Holder. I am Director, Compensation, Benefits and Human 12 Resources Records for NV Energy, Inc., and its two operating subsidiaries, 13 Nevada Power Company d/b/a NV Energy (“Nevada Power” or “Company”) d/b/a NV Energy 14 and Sierra Pacific Power Company d/b/a NV Energy (“Sierra” and together Nevada Power Company Company Power Nevada 15 with Nevada Power the “Companies”). My primary business address is 6226 and Sierra Pacific Power Company Pacific Power Sierra and Company

16 West Sahara Avenue in Las Vegas, Nevada. I am filing testimony in this 17 proceeding on behalf of Nevada Power. 18

19 2. Q. WHAT ARE YOUR PRIMARY RESPONSIBILITIES AS DIRECTOR,

20 COMPENSATION, BENEFITS AND HUMAN RESOURCES 21 RECORDS FOR NEVADA POWER AND SIERRA? 22 A. I manage the administration of the Companies’ employee compensation and 23 benefit programs. I also have responsibilities related to the maintenance of 24 human resources systems and records.

25 26 27 28 Holder-DIRECT 1

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1 3. Q. PLEASE DESCRIBE YOUR PROFESSIONAL BACKGROUND AND 2 EXPERIENCE. 3 A. I hold a Bachelor of Science Degree in Human and Family Resources and a 4 Master of Science Degree in Education. For the past 22 years I have worked

5 in human resources or have been in positions supporting the human resource 6 function. I spent five of these years as a consultant working with compensation 7 and benefits departments across the country implementing technology tools to 8 support their business needs. For the past 12 years I have been employed by 9 Sierra and Nevada Power in a variety of roles supporting the compensation

10 and benefits functions.

11 12 4. Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE THE PUBLIC 13 UTILITIES COMMISSION OF NEVADA (“COMMISSION”)? d/b/a NV Energy 14 A. Yes. Most recently, I filed testimony with the Commission in Sierra’s last Nevada Power Company Company Power Nevada 15 general rate case, Docket No. 19-06002. and Sierra Pacific Power Company Pacific Power Sierra and Company

16 17 5. Q. WHAT IS THE PURPOSE OF YOUR PREPARED DIRECT 18 TESTIMONY? 19 A. I address the reasonableness of test and certification period costs of the

20 Company’s employee cash compensation programs. 21 22 6. Q. ARE YOU SPONSORING ANY EXHIBITS WITH YOUR 23 TESTIMONY? 24 A. Yes. I have prepared and am sponsoring the following exhibits as part of my 25 testimony: 26 Exhibit Holder-Direct-1 Statement of Qualifications 27 28 Holder-DIRECT 2

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1 Exhibit Holder-Direct-2A Local 396 Wage Scales 2 Exhibit Holder-Direct-2B Executed Letter of Agreement – Contract 3 Extension 4 Exhibit Holder-Direct-3A Non-represented Salary Structure

5 Exhibit Holder-Direct-3B Benchmarking Data for Non-represented 6 Employees 7 Exhibit Holder-Direct-3C Salary Survey Participants 8 Exhibit Holder-Direct-4A Benchmarking Data for Officers 9 Exhibit Holder-Direct-4B Officer Compensation Comparison

11 7. Q. HOW IS THE REMAINDER OF YOUR TESTIMONY ORGANIZED? 12 A. In parts II, III and IV of my testimony, I support the reasonableness of test and 13 certification period costs associated with Sierra’s compensation programs for d/b/a NV Energy 14 represented employees, non-represented employees, and officers, Nevada Power Company Company Power Nevada 15 respectively. and Sierra Pacific Power Company Pacific Power Sierra and Company

17 II. BASE PAY FOR BARGAINING UNIT EMPLOYEES

18 8. Q. PLEASE DESCRIBE THE COMPENSATION STRUCTURE FOR 19 BARGAINING UNIT EMPLOYEES. 20 A. Wages for represented employees are established through collective

21 bargaining in accordance with federal law. Exhibit Holder-Direct-2A shows 22 wage scales for the International Brotherhood of Electrical Workers, Local 23 396 (“Local 396”) employees. 24 25 26 27 28 Holder-DIRECT 3

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1 9. Q. IS NEVADA POWER CURRENTLY ENGAGED IN COLLECTIVE 2 BARGAINING WITH LOCAL 396? 3 A. No. The collective bargaining agreement with Local 396, was executed on 4 September 24, 2013 (“CBA”) and was originally set to expire September 22,

5 2017. However, Nevada Power and Local 396 agreed to extend the CBA 6 through June 30, 2021. Exhibit Holder-Direct-2B is a copy of the executed 7 extension agreement. The payroll expense levels reflected in Schedule H- 8 CERT-17 for bargaining unit employees are based on the CBA and the 9 estimated workforce level in January 2020. This provides an annualized

10 amount from which to estimate costs at the end of May 31, 2020.

11 12 10. Q. HAS THE COMMISSION PREVIOUSLY REVIEWED THE CBA, 13 WHICH WAS USED TO CALCULATE ANNUALIZED PAYROLL OF d/b/a NV Energy 14 BARGAINING UNIT EMPLOYEES AS OF MAY 31, 2020? Nevada Power Company Company Power Nevada 15 A. Yes. The CBA was in place during the test period for Nevada Power’s last and Sierra Pacific Power Company Pacific Power Sierra and Company

16 general rate case, Docket No. 17-06003. 17 18 11. Q. IS THE BASE PAY FOR LOCAL 396 EMPLOYEES UNDER THE CBA 19 REASONABLE?

20 A. Yes. The benchmarking analysis described below demonstrates that the 21 compensation levels negotiated under the CBA are in fact reasonable and 22 consistent with regional industry standards. It is also important to recognize 23 that the Company negotiates a total wage, benefit and work rule package with 24 the Local 396. As a result, in some instances, wage increases may be granted 25 if savings are captured from other areas (e.g. changes to work rules, changes 26 to pension funding, etc.). 27 28 Holder-DIRECT 4

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1 12. Q. PLEASE EXPLAIN NEVADA POWER’S BENCHMARKING OF 2 LOCAL 396 WAGES. 3 A. The Company utilized benchmarking data from the EAP Data Information 4 Solutions (“EAPDIS”) 2018 Energy Technical Craft Clerical Survey to

5 validate current Local 396 wage rates. The data from the survey is effective as 6 of April 1, 2018, and was aged 2.5 percent, to December 31, 2019, using an 7 independent on-line market pricing system. 8 9 The Company’s market analysis compares Nevada Power’s average hourly

10 wages for benchmarked positions and the median hourly wages as reported

11 within 1) All Companies; 2) the Mountain/Plains Region; 3) the Western 12 Region; and 4) the average between the Mountain and Western scopes. The 13 analysis revealed that the average hourly wage for Nevada Power’s d/b/a NV Energy 14 benchmarked positions is 3.9 percent greater than All Companies, 7.0 percent Nevada Power Company Company Power Nevada 15 greater than the Mountain/Plains Region average, 10.6 percent lower than the and Sierra Pacific Power Company Pacific Power Sierra and Company

16 Western Region average, and 1.8 percent lower than the average composite of 17 these two regions.1 18 19 13. Q. WHAT IS THE IMPORTANCE OF COMPARING WAGE RATES TO

20 REGIONAL WAGE LEVELS? 21 A. This is an important comparison because electric utilities in the western United 22 States and some mountain states compete directly with Nevada Power for 23 skilled craft employees. In evaluating the reasonableness of Nevada Power’s 24 compensation costs, the Company considers the labor markets in which it must 25 compete for skilled labor to perform the work to serve customers. Although

26 1 To protect the integrity of the salary survey results, as only one survey source was used, the benchmarking analysis cannot be published and is considered proprietary information; however, the analysis can be reviewed 27 on-site upon request. 28 Holder-DIRECT 5

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1 higher wage levels are commanded by skilled utility workers in the Western 2 Region, the hourly wages for Local 396 are positioned between the Western 3 Region and the Mountain/Plains Region. 4

5 III. BASE PAY FOR NON-REPRESENTED EMPLOYEES 6 14. Q. PLEASE DESCRIBE THE CASH COMPENSATION COMPONENTS 7 FOR NON-REPRESENTED EMPLOYEES. 8 A. The components of the cash compensation program for non-represented 9 employees reflected in the revenue requirement calculated in this case include:

10 • Base pay, which is provided to all employees;

11 • Short Term Incentive Plan (“STIP”), which provides a financial 12 incentive for meeting or exceeding Nevada Power’s short-term 13 strategic goals and meeting or exceeding personal performance goals d/b/a NV Energy 14 which contribute to the achievement of company goals. Nevada Power Company Company Power Nevada 15 • Other cash compensation, including signing bonuses, retention and Sierra Pacific Power Company Pacific Power Sierra and Company

16 bonuses, severance and relocation costs. 17 18 15. Q. HOW IS BASE PAY DETERMINED? 19 A. Our goal is to provide competitive compensation at the median level of what

20 an employee would receive at another company. We evaluate internal equity, 21 which is the relative worth of each job within the Companies when comparing 22 the jobs’ responsibilities and accountabilities, and the required level of 23 competencies, training, and experience needed by an employee to fulfill the 24 jobs’ duties. We also continuously evaluate the current market value of jobs 25 based on the knowledge, skills, and talents required of a fully competent 26 incumbent. Based on the internal value and external market, jobs are assigned 27 28 Holder-DIRECT 6

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1 to a salary grade. The salary range, which includes a minimum, midpoint and 2 maximum rate, varies by salary grade. Employee’s salaries are then managed 3 within the grade using the midpoint as a reference. 4

5 16. Q. WHAT ARE THE RANGES OF BASE SALARIES FOR NON- 6 REPRESENTED EMPLOYEES? 7 A. Exhibit Holder-Direct-3A shows the 2019 non-represented salary structure. 8 9 17. Q. HOW IS EXTERNAL MARKET VALUE DETERMINED?

10 A. While Nevada Power uses several compensation surveys to benchmark non-

11 represented jobs, results from Willis Towers Watson CDB Energy Services 12 Mid-Management, Professional & Support continues to be the primary source 13 of benchmark data. For each benchmarked non-represented job, the market d/b/a NV Energy 14 median of the benchmark job is pulled along with the target bonus incentive. Nevada Power Company Company Power Nevada 15 Data is pulled utilizing the total sample. Surveys utilized in 2019 are listed in and Sierra Pacific Power Company Pacific Power Sierra and Company

16 Table-Holder-Direct-1 below. 17 Table-Holder-Direct-1 18 Survey Data 19 Survey Name Effective Date 20 Aon High Demand IT Compensation & Practices, 2018 3/1/2018 21 Aon IEHRA Energy Industry, 2018 5/1/2018 Aon Renewable Energy, 2018 4/1/2018 22 Aon TCM Broad-Based Mgmt Total Comp by Industry, 2018 3/1/2018 23 Energy Technical Craft Clerical, 2018 4/1/2018 Willis Towers Watson American Gas Association, 2019 3/1/2019 24 Willis Towers Watson Energy Services Executive, 2019 4/1/2019 25 Willis Towers Watson Energy Services Mid-Mgmt, Prof & Support, 2019 4/1/2019 26 27 28 Holder-DIRECT 7

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1 18. Q. WHAT OTHER COMPANIES PARTICIPATE IN THESE SURVEYS 2 THAT WOULD BE INCLUDED IN THE TOTAL SAMPLE? 3 A. Exhibit Holder-Direct-3C provides a listing of participants in each of the 4 salary surveys used.

5 6 19. Q. THE SURVEY DATA EFFECTIVE DATE IS PRIOR TO 7 DECEMBER 31, 2019. THE MARKET DATA PROVIDED IN 8 HOLDER-DIRECT-3C IS AS OF DECEMBER 31, 2019. HOW WAS 9 THE MARKET DATA AGED?

10 A. The vendor who provides on-line market pricing system loads the electronic

11 survey results obtained from the survey providers into the market pricing 12 database, called MarketPay, and ages the data for the Companies. The vendor 13 ages the survey data within MarketPay off of the number of days between a d/b/a NV Energy 14 survey’s effective date and the system’s established “Age-to-Date.” Survey Nevada Power Company Company Power Nevada 15 results have been aged by 2.5 percent to December 31, 2019. Using months to and Sierra Pacific Power Company Pacific Power Sierra and Company

16 simplify the calculation, the formulas for the aging based on the survey data 17 effective date are provided below in Table Holder-Direct 2. 18 19 Table Holder-Direct-2

20 Survey Data Aging Calculation 21 Effective Date 22 3/1/2018 (22/12)*2.5% = 4.583% 23 4/1/2018 (21/12)*2.5% = 4.375% 24 5/1/2018 (20/12)*2.5% = 4.167% 3/1/2019 (10/12)*2.5% = 2.083% 25 4/1/2019 (9/12)*2.5% = 1.875% 26

27 28 Holder-DIRECT 8

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1 20. Q. BASED ON EXTERNAL MARKET DATA, ARE BASE PAY AND 2 TARGET STIPS FOR NON-REPRESENTED EMPLOYEES 3 REASONABLE? 4 A. Yes. Survey data confirms that Nevada Power is achieving a market-

5 competitive status with respect to base pay and STIP targets, consistent with 6 its goal. Exhibit Holder-Direct-3B shows that for the non-represented 7 positions, the average base salary is 2.1 percent below the benchmarked 8 median. In the aggregate, Nevada Power’s average calculated total cash 9 compensation is 2.6 percent below the calculated market median total cash

10 compensation. Both are within an acceptable range to the market median.

11 12 21. Q. HOW HAS COMPENSATION FOR NON-REPRESENTED 13 EMPLOYEES CHANGED SINCE THE LAST NEVADA POWER d/b/a NV Energy 14 GENERAL RATE CASE? Nevada Power Company Company Power Nevada 15 A. In December 2016, the Company had 1,208 non-represented employees with and Sierra Pacific Power Company Pacific Power Sierra and Company

16 a total base salary of $115 million. In December 2019, the Company had 1,219 17 (excluding 18 executives) non-represented employees with a total base salary 18 of $124 million. Using the average annual rate per employee, the average base 19 salary increased only 6.8 percent over the past three years as shown in Table

20 Holder-Direct-3. 21 22 23 24 25 26 27 28 Holder-DIRECT 9

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1 Table Holder-Direct-3 2 Delta from 3 last

4 Nevada Year Employee Average Delta Year Power 5 Count Annual Rate Rate over Year GRC 2016 1,208 $115,081,906 $95,266 6 2017 1,197 $116,057,465 $96,957 1.8% 6.8% 7 2018 1,195 $115,570,642 $96,712 -0.3% 2019 1,219 $124,062,950 $101,774 5.2% 8 9

10 IV. BASE PAY FOR OFFICERS

11 22. Q. PLEASE DESCRIBE THE COMPENSATION PLAN FOR OFFICERS. 12 A. Consistent with the other employee groups, Nevada Power seeks to offer 13 officer compensation that is competitive. Nevada Power’s goal is to achieve a d/b/a NV Energy 14 median position compared to its competitors for the total compensation Nevada Power Company Company Power Nevada 15 program. The Company’s compensation plan is designed to attract and and Sierra Pacific Power Company Pacific Power Sierra and Company

16 motivate exceptional, knowledgeable, and experienced officers and to elicit 17 long-term employment commitments and performance. A substantial portion 18 of each officer’s total compensation is tied to the achievement of corporate 19 and individual performance goals. The cash components of the compensation 20 program for officers that are requested for recovery in this case include the 21 following:

22 • Base Pay, which is determined primarily by considering internal equity 23 and external benchmarking survey data.

24 • STIP, which provides a financial incentive for meeting or exceeding 25 the Companies’ short term strategic goals and for meeting or exceeding 26 27 28 Holder-DIRECT 10

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1 personal performance goals which contribute to the achievement of 2 company goals. 3 • Other cash compensation, including signing bonuses, retention 4 bonuses, severance and relocation costs.

5 6 23. Q. HOW ARE BASE PAY AND STIP TARGETS DETERMINED? 7 A. Similar to the non-represented employee group, Nevada Power evaluates 8 internal equity, which is the relative worth of each job within the Company 9 when comparing the job’s responsibilities and accountabilities. The Company

10 also evaluates the current market value of jobs based on the knowledge, skills,

11 and talents required of a fully competent incumbent. Then, based on the 12 internal value and external market, jobs are assigned a salary grade. The salary 13 grade determines a salary range with a minimum, midpoint and maximum d/b/a NV Energy 14 rates. Employee’s salaries are then managed within the grade using the Nevada Power Company Company Power Nevada 15 midpoint as a reference. and Sierra Pacific Power Company Pacific Power Sierra and Company

16 17 Target STIP percentages are assigned at the position level. For some 18 promotions, target STIP percentages have been increased while the base pay 19 has remained flat. Target STIP percentages for newly promoted officers since

20 the last general rate case, have been determined based on internal equity of 21 positions in the same grade using total compensation with the majority of the 22 target’s falling between 30 and 40 percent. 23 24 25 26 27 28 Holder-DIRECT 11

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1 24. Q. WHAT ARE THE RANGES OF BASE SALARIES FOR OFFICERS? 2 A. All non-represented employees, including officers, share the same salary 3 structure. Exhibit Holder-Direct-3A, which I discussed above, shows the 4 2019 non-represented salary structure for all non-represented employees,

5 including officers. 6 7 25. Q. HOW IS EXTERNAL MARKET VALUE DETERMINED? 8 A. The Company utilizes similar compensation surveys as those used for non- 9 represented employees to benchmark officer jobs. All officer positions are

10 benchmarked to the Willis Towers Watson CDB Energy Services Executive

11 survey. For each benchmarked officer job, the market median of the 12 benchmark job is pulled, along with the target bonus incentive. For officer 13 compensation, data for the total population is utilized. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada 15 26. Q. IS THE MARKET DATA AGED USING THE SAME CALCULATIONS and Sierra Pacific Power Company Pacific Power Sierra and Company

16 AS THOSE USED FOR THE NON-REPRESENTED BENCHMARKED 17 JOBS? 18 A. Yes. All of the Company’s benchmarking data is housed in MarketPay, the 19 Company’s on-line market pricing system. The Company’s vendor ages the

20 data using the same preprogrammed system calculations for all of the 21 Companies’ benchmark data. 22 23 27. Q. BASED ON EXTERNAL MARKET DATA, ARE BASE PAY AND 24 TARGET STIP PERCENTAGES FOR OFFICERS REASONABLE? 25 A. Yes. The survey data confirms that Nevada Power is efficiently managing the 26 base pay and target STIP percentages of the officers. Exhibit Holder-Direct- 27 28 Holder-DIRECT 12

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1 4A shows that for officer positions, the average base salary is 11 percent below 2 market median. In the aggregate, Nevada Power’s average calculated total 3 cash compensation for officers is 13 percent below the calculated market 4 median total cash compensation.

5 6 28. Q. HOW HAS OFFICER COMPENSATION CHANGED SINCE THE 7 LAST NEVADA POWER GENERAL RATE CASE? 8 A. In December 2016, the Company had 20 officer positions with a total base 9 salary of $5.0 million and total compensation of $7.0 million. In December

10 2019, the Company had 18 officer positions with a total base salary of $4.5

11 million and total compensation of $6.2 million. The organization had a 12 decrease in two officer positions and the average total cash compensation 13 decreased 2.6% over three years. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada 15 As reflected in Exhibit Holder-Direct-4B, the Company has effectively and Sierra Pacific Power Company Pacific Power Sierra and Company

16 controlled executive compensation levels. 17 18 29. Q. IS OFFICER COMPENSATION ADMINISTERED DIFFERENTLY 19 THAN NON-REPRESENTED EMPLOYEES?

20 A. No. As indicated above, officers and non-represented employees share the 21 same salary structure, benchmarking/data aging process, internal value 22 comparison and merit pool dollars. 23 24 25 26 27 28 Holder-DIRECT 13

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1 30. Q. ARE NEVADA POWER’S EXECUTIVE COMPENSATION LEVELS 2 REASONABLE? 3 A. Yes. As reflected in Exhibit Holder-Direct-4A and Exhibit Holder-Direct- 4 4B, the Company has continued to control executive compensation levels

5 seeing a slight decrease since the last Nevada Power general rate case. 6 7 V. CONCLUSION 8 31. Q. DOES THIS CONCLUDE YOUR PREPARED DIRECT TESTIMONY? 9 A. Yes.

11 12 13 d/b/a NV Energy 14 Nevada Power Company Company Power Nevada 15 and Sierra Pacific Power Company Pacific Power Sierra and Company

16 17 18 19

20 21 22 23 24 25 26 27 28 Holder-DIRECT 14

Page 18 of 247 Exhibit Holder-Direct-1 Page 1 of 2 Lisa Holder Director, Compensation, Benefits and Human Resources Records NV Energy

I have been employed by Nevada Power Company and Sierra Pacific Power Company for over nine years and have nineteen years of experience supporting human resources functions. Currently, I report to the Senior Vice President, Human Resources and Corporate Services and manage the compensation, benefits and human resources (HR) records function. I am responsible for planning and implementing corporate-wide compensation and benefit programs. I am also responsible for HR records management and compliance with corporate records and retention policies. Employment History

Nevada Power Company and Sierra Pacific Power Company d/b/a NV Energy

 Director, Compensation, Benefits and Human Resources Records (2017 - present) Responsible for the planning and implementation of corporate-wide compensation and benefit programs. Oversee the day-to-day administration of compensation and benefit programs. Responsible for HR records management and compliance with corporate records and retention policies.  Manager, Compensation & Human Resources Records Management (2013–2016) Responsible for the planning and implementation of corporate-wide compensation and incentive programs. Responsible for day-to-day administration of compensation programs. Support the administration of executive compensation programs. Responsible for HR records management and compliance with corporate records and retention policies

 Business Systems Analyst III/IV (2007–2013) Provided technical support to the Compensation, Benefits and Investor Relations departments. Identified opportunities for improving business processes through information system changes. Assisted in the preparation of proposals to develop new systems in support of operational changes. Made alterations to existing systems to store and retrieve data as needed. Worked with vendors to facilitate the integration of vendor products and technologies.

Bechtel SAIC 2003–2007

 HR Systems & Records Supervisor (2005-2007) Supervised the Human Resources Information System (HRIS) platform and maintenance of data. Reviewed data input and output reporting for accuracy. Monitored and improved data collection and reporting procedures for efficiency. Supported the Compensation and Benefits departments during merit increase, bonus planning and open enrollment. Managed HRIS upgrade and implementation projects. Oversaw the maintenance of employee records.

Page 19 of 247 Exhibit Holder-Direct-1 Page 1 of 2

 HRIS Analyst (2003–2005) Maintained the company HRIS. Provided analytical and technical support to the HR department. Maintained quality and consistency of HRIS database information. Ensured personnel actions were in compliance with HR policies and guidelines. Addressed new HR needs by identifying and implementing system solutions. Conducted ad hoc data analysis on compensation and benefits related data. Defined requirements for interfaces with vendors and other company systems and resolved any related technical issues. Established and enforced security protocols.

Maximus, ERP Solutions Division 1998–2003

 Director, HRIS Implementations (2002-2003) Responsible for multiple, concurrent HRIS implementations. Appropriately staffed projects and provided oversight to ensure contract fulfillment. Established milestones and deliverables. Completed quality assurance audits and reviewed project deliverables. Worked with client sponsors and consultant management team in issue resolution and contingency planning.

 Project Manager (2001-2002) Provided project management through entire HRIS implementation/upgrade lifecycle. Established and administered project plan and schedule in accordance with master agreements. Collaborated with module consultants to ensure completion of milestone deliverables. Guided cross-functional teams in the implementation of HRIS ensuring module configurations allowed system integration.

 HRIS Implementation Consultant (1998-2001) Specializing in benefits, compensation and human resource administration, assisted clients in defining system requirements based on business processes. Mapped business processes for new HRIS. Configured systems based on clients business processes. Analyzed system deficiencies, proposed solutions, and implemented chosen solution. Led clients through testing and go-live activities. Provided post-production support.

Caesars World Business Services 1997–1998

 Training Supervisor Responsible for training programs during the implementation of PeopleSoft Financials and Human Resources systems. Ensured appropriate end-user training was designed, materials and training databases were created, training sessions were conducted and post-production support was provided for six properties located across the nation.

Education Master of Science, Northern Illinois University Bachelor of Science, Northern Illinois University

Page 20 of 247 EXHIBIT HOLDER-DIRECT-2A

Page 21 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

CLERICAL – WAGES (2018 through 2021) 1st Pay 1st Pay 1st Pay JOB Period After Period After Period After JOB TITLE STEP CODE 8/31/2018 8/31/2019 8/31/2020 2.0% 2.5% 2.5% 5061 Lead Field Service Rep 1 $32.15 $32.95 $33.77

5161 Field Service Rep 1 $25.37 $26.00 $26.65 2nd Six Months 2 $26.96 $27.63 $28.32 3rd Six Months 3 $29.30 $30.03 $30.78

5162 Revenue Protection Investigator 1 $29.49 $30.23 $30.99 2nd Six Months 2 $30.78 $31.55 $32.34 3rd Six Months 3 $31.95 $32.75 $33.57 4th Six Months 4 $33.14 $33.97 $34.82

5174 Senior Customer Service Rep 1 $24.35 $24.96 $25.58 2nd Six Months 2 $25.44 $26.08 $26.73 3rd Six Months 3 $26.58 $27.24 $27.92 4th Six Months 4 $27.76 $28.45 $29.16 5th Six Months 5 $29.21 $29.94 $30.69

5175 Lead Customer Service Rep 1 $28.82 $29.54 $30.28

5177 Lead Field Srvc Investigator 1 $36.49 $37.40 $38.34

5182 Trainer METER 1 $32.15 $32.95 $33.77

5183 Trainer Customer Care 1 $32.15 $32.95 $33.77

5270 Reprographic Tech 1 $24.02 $24.62 $25.24 2nd Six Months 2 $24.89 $25.51 $26.15 3rd Six Months 3 $25.79 $26.43 $27.09 4th Six Months 4 $26.59 $27.25 $27.93 5th Six Months 5 $27.48 $28.17 $28.87

5274 Customer Service Rep 1 $17.20 $17.63 $18.07 2nd Six Months 2 $18.73 $19.20 $19.68 3rd Six Months 3 $20.23 $20.74 $21.26 4th Six Months 4 $21.76 $22.30 $22.86 5th Six Months 5 $23.29 $23.87 $24.47

5276 Bilingual Customer Service Rep 1 $17.65 $18.09 $18.54 2nd Six Months 2 $19.18 $19.66 $20.15 3rd Six Months 3 $20.68 $21.20 $21.73 4th Six Months 4 $22.21 $22.77 $23.34 5th Six Months 5 $23.75 $24.34 $24.95

Page 1 of 13 Page 22 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

CLERICAL – WAGES (2018 through 2021) 1st Pay 1st Pay 1st Pay JOB Period After Period After Period After JOB TITLE STEP CODE 8/31/2018 8/31/2019 8/31/2020 2.0% 2.5% 2.5% 5277 Lead Bilingual Cust Serv Rep 1 $29.24 $29.97 $30.72

5371 Lead Support Services 1 $30.22 $30.98 $31.75

5416 Technician, Mail & Supply 1 $15.45 $15.84 $16.24 2nd Six Months 2 $16.81 $17.23 $17.66 3rd Six Months 3 $18.20 $18.66 $19.13 4th Six Months 4 $19.91 $20.41 $20.92 5th Six Months 5 $21.92 $22.47 $23.03

Page 2 of 13 Page 23 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

TRANSMISSION & DISTRIBUTION – WAGES (2018 through 2021) 1st Pay 1st Pay 1st Pay JOB Period After Period After Period After JOB TITLE STEP CODE 8/21/2018 08/31/2019 08/31/2020 2.0% 2.5% 2.5% 3102 Rodman Chainman 1 $26.52 $27.18 $27.86 2nd Six Months 2 $29.04 $29.77 $30.51 3rd Six Months 3 $29.25 $29.98 $30.73 4th Six Months 4 $30.74 $31.51 $32.30 5th Six Months 5 $32.30 $33.11 $33.94

3103 Tech I, Mapping 1 $25.13 $25.76 $26.40 2nd Six Months 2 $25.79 $26.43 $27.09 3rd Six Months 3 $26.39 $27.05 $27.73 4th Six Months 4 $27.05 $27.73 $28.42 5th Six Months 5 $27.70 $28.39 $29.10 6th Six Months 6 $28.43 $29.14 $29.87 7th Six Months 7 $29.13 $29.86 $30.61

3104 Tech II, Mapping 1 $29.58 $30.32 $31.08 2nd Six Months 2 $30.19 $30.94 $31.71 3rd Six Months 3 $30.76 $31.53 $32.32 4th Six Months 4 $31.39 $32.17 $32.97 5th Six Months 5 $32.02 $32.82 $33.64 6th Six Months 6 $32.64 $33.46 $34.30 7th Six Months 7 $33.29 $34.12 $34.97 8th Six Months 8 $34.00 $34.85 $35.72

3105 Tech Sr, Mapping 1 $34.23 $35.09 $35.97 2nd Six Months 2 $34.85 $35.72 $36.61 3rd Six Months 3 $35.71 $36.60 $37.52 4th Six Months 4 $36.61 $37.53 $38.47 5th Six Months 5 $37.50 $38.44 $39.40 6th Six Months 6 $38.42 $39.38 $40.36 7th Six Months 7 $39.36 $40.34 $41.35

3107 UDC I 1 $26.60 $27.27 $27.95 2nd Six Months 2 $27.43 $28.12 $28.82 3rd Six Months 3 $28.21 $28.92 $29.64 4th Six Months 4 $29.11 $29.84 $30.59 5th Six Months 5 $29.94 $30.69 $31.46 6th Six Months 6 $30.83 $31.60 $32.39 7th Six Months 7 $31.77 $32.56 $33.37

Page 3 of 13 Page 24 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

3108 UDC II 1 $35.20 $36.08 $36.98 2nd Six Months 2 $36.25 $37.16 $38.09 3rd Six Months 3 $37.35 $38.28 $39.24 4th Six Months 4 $38.45 $39.41 $40.40

3109 Coordinator Senior, Projects 1 $41.39 $42.42 $43.48 2nd Six Months 2 $42.62 $43.69 $44.78 3rd Six Months 3 $44.13 $45.23 $46.36 4th Six Months 4 $45.67 $46.81 $47.98 5th Six Months 5 $47.28 $48.46 $49.67

3110 Senior Designer 1 $39.81 $40.81 $41.83 2nd Six Months 2 $41.20 $42.23 $43.29 3rd Six Months 3 $42.64 $43.71 $44.80

3146 Mechanical Specialist 1 $45.60 $46.74 $47.91

3178 Surveyor 1 $46.19 $47.34 $48.52

5144 Clerk Dispatcher 1 $39.92 $40.92 $41.94

5145 Mat Spec/LG/FSR 1 $34.40 $35.26 $36.14 2nd Six Months 2 $35.69 $36.58 $37.49 3rd Six Months 3 $37.16 $38.09 $39.04

5181 Meter Shop Dispatcher 1 $33.68 $34.52 $35.38

6054 Lead Comm Electrician 1 $51.97 $53.27 $54.60

6055 Lead Relay Electrician 1 $53.07 $54.40 $55.76

6056 Lead Substation Electrician 1 $50.55 $51.81 $53.11

6057 Lead Lineman 1 $51.06 $52.34 $53.65

6058 Lead Metering Electrician 1 $50.55 $51.81 $53.11

Page 4 of 13 Page 25 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

6080 Lead Fleet Services Mechanic 1 $49.55 $50.79 $52.06

6089 Lead Surveyor 1 $50.82 $52.09 $53.39

6100 Line Clearance Inspector 1 $31.21 $31.99 $32.79

6104 Trainer Substation 1 $50.55 $51.81 $53.11

6105 Trainer Lines 1 $51.06 $52.34 $53.65

6107 Relay Electrician II 1 $48.26 $49.47 $50.71

6108 Comm Electrician II 1 $48.26 $49.47 $50.71

6110 Field Inspector 1 $47.36 $48.54 $49.75

6111 Circuit Inspector 1 $41.33 $42.36 $43.42

6112 Electrical Inspector 1 $48.73 $49.95 $51.20

6113 Line Troubleman 1 $48.74 $49.96 $51.21

6121 Substation Inspector 1 $48.26 $49.47 $50.71

6122 Substation Electrician 1 $45.96 $47.11 $48.29

6123 Journeyman Lineman 1 $46.40 $47.56 $48.75

Journeyman Metering 6124 1 $45.96 $47.11 $48.29 Electrician

6130 Welder, Company Wide 1 $45.96 $47.11 $48.29

6136 Lines Groundman 1 $24.87 $25.49 $26.13 2nd Six Months 2 $25.71 $26.35 $27.01 3rd Six Months 3 $26.52 $27.18 $27.86

Page 5 of 13 Page 26 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

6150 Equipment Mechanic 1 $45.05 $46.18 $47.33

6151 Fleet Maintenance Technician 1 $32.39 $33.20 $34.03 2nd Six Months 2 $33.34 $34.17 $35.02 3rd Six Months 3 $34.34 $35.20 $36.08 4th Six Months 4 $35.35 $36.23 $37.14 5th Six Months 5 $36.27 $37.18 $38.11

6159 Warehouse Utility Tech T&D 1 $25.49 $26.13 $26.78 2nd Six Months 2 $26.50 $27.16 $27.84 3rd Six Months 3 $27.47 $28.16 $28.86

6166 Equipment Operator 1 $41.03 $42.06 $43.11

6172 Underground Inspector 1 $34.15 $35.00 $35.88 2nd Six Months 2 $35.54 $36.43 $37.34 3rd Six Months 3 $36.75 $37.67 $38.61 4th Six Months 4 $38.05 $39.00 $39.98 5th Six Months 5 $39.32 $40.30 $41.31

6173 Underground Line Locator 1 $25.08 $25.71 $26.35 2nd Six Months 2 $26.35 $27.01 $27.69 3rd Six Months 3 $27.67 $28.36 $29.07 4th Six Months 4 $29.09 $29.82 $30.57

6177 High Boom Operator 1 $39.82 $40.30 $41.31

6180 Line Patrolman 1 $47.36 $48.54 $49.75

6182 Fleet Utility Tech 1 $28.47 $29.18 $29.91 2nd Six Months 2 $29.44 $30.18 $30.93 3rd Six Months 3 $30.38 $31.14 $31.92 4th Six Months 4 $31.40 $32.19 $32.99

Page 6 of 13 Page 27 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

6184 Technician, Tool Compliance 1 $40.16 $41.16 $42.19

6185 Comm Groundman 1 $24.87 $25.49 $26.13 2nd Six Months 2 $25.71 $26.35 $27.01 3rd Six Months 3 $26.52 $27.18 $27.86 4th Six Months 4 $27.55 $28.24 $28.95 5th Six Months 5 $28.61 $29.33 $30.06 6th Six Months 6 $29.71 $30.45 $31.21 7th Six Months 7 $30.74 $31.51 $32.30

6156 Parts Specialist II, Utility Fleet 1 $34.98 $35.85 $36.75 2nd six months 2 $36.02 $36.92 $37.84 3rd six months 3 $37.08 $38.01 $38.96 4th six months 4 $38.16 $39.11 $40.09 5th six months 5 $39.31 $40.29 $41.30

6157 Parts Specialist I, Utility Fleet 1 $34.40 $35.26 $36.14 2nd six months 2 $35.42 $36.31 $37.22 3rd six months 3 $36.49 $37.40 $38.34 4th six months 4 $37.58 $38.52 $39.48 5th six months 5 $38.72 $39.69 $40.68

6187 Relief Line Troubleman 1 $49.66 $50.90 $52.17

6188 Clerk Driver 1 $33.73 $34.57 $35.43 2nd Six Months 2 $35.03 $35.91 $36.81 3rd Six Months 3 $36.37 $37.28 $38.21 4th Six Months 4 $37.65 $38.59 $39.55

6189 Substation Groundman 1 $24.87 $25.49 $26.13 2nd Six Months 2 $25.71 $26.35 $27.01 3rd Six Months 3 $26.52 $27.18 $27.86 4th Six Months 4 $27.55 $28.24 $28.95 5th Six Months 5 $28.61 $29.33 $30.06 6th Six Months 6 $29.71 $30.45 $31.21 7th Six Months 7 $30.74 $31.51 $32.30

Page 7 of 13 Page 28 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

TRANSMISSION & DISTRIBUTION – WAGES (2018 through 2021) 1st Pay 1st Pay 1st Pay JOB Period After Period After Period After JOB TITLE STEP CODE 8/21/2018 08/31/2019 08/31/2020 2.0% 2.5% 2.5% 6190 Survey Instrument Tech 1 $34.15 $35.00 $35.88 2nd Six Months 2 $35.54 $36.43 $37.34 3rd Six Months 3 $36.75 $37.67 $38.61 4th Six Months 4 $38.05 $39.00 $39.98 5th Six Months 5 $39.32 $40.30 $41.31

6196 Metering UtilityTech-Mtr Svc 1 $18.63 $19.10 $19.58 2nd Six Months 2 $19.65 $20.14 $20.64 3rd Six Months 3 $20.59 $21.10 $21.63 4th Six Months 4 $21.57 $22.11 $22.66 5th Six Months 5 $22.57 $23.13 $23.71 6th Six Months 6 $23.54 $24.13 $24.73 7th Six Months 7 $24.52 $25.13 $25.76

6197 Communications Electrician I 1 $46.53 $47.69 $48.88

6198 Relay Electrician I 1 $47.25 $48.43 $49.64

Master Lines Clearance 6199 1 $32.77 $33.59 $34.43 Inspector

7013 App Equip Mechanic 1 $35.58 $36.47 $37.38 2nd Six Months 2 $36.57 $37.48 $38.42 3rd Six Months 3 $37.58 $38.52 $39.48 4th Six Months 4 $38.62 $39.59 $40.58 5th Six Months 5 $39.75 $40.74 $41.76 6th Six Months 6 $42.06 $43.11 $44.19 7th Six Months 7 $45.05 $46.18 $47.33

7020 Apprentice Lineman 1 $25.51 $26.15 $26.80 2nd Six Months 2 $27.82 $28.52 $29.23 3rd Six Months 3 $30.18 $30.93 $31.70 4th Six Months 4 $32.49 $33.30 $34.13 5th Six Months 5 $34.81 $35.68 $36.57 6th Six Months 6 $37.13 $38.06 $39.01 7th Six Months 7 $39.44 $40.43 $41.44 8th Six Months 8 $41.77 $42.81 $43.88

7021 App Substation Electrician 1 $34.12 $34.97 $35.84

Page 8 of 13 Page 29 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

TRANSMISSION & DISTRIBUTION – WAGES (2018 through 2021) 1st Pay 1st Pay 1st Pay JOB Period After Period After Period After JOB TITLE STEP CODE 8/21/2018 08/31/2019 08/31/2020 2.0% 2.5% 2.5% 2nd Six Months 2 $35.51 $36.40 $37.31 3rd Six Months 3 $36.70 $37.62 $38.56 4th Six Months 4 $37.98 $38.93 $39.90 5th Six Months 5 $39.28 $40.26 $41.27 6th Six Months 6 $40.51 $41.52 $42.56 7th Six Months 7 $41.79 $42.83 $43.90 8th Six Months 8 $43.08 $44.16 $45.26 9th Six Months 9 $45.96 $47.11 $48.29

7022 App Metering Electrician 1 $34.12 $34.97 $35.84 2nd Six Months 2 $35.51 $36.40 $37.31 3rd Six Months 3 $36.70 $37.62 $38.56 4th Six Months 4 $37.98 $38.93 $39.90 5th Six Months 5 $39.28 $40.26 $41.27 6th Six Months 6 $40.51 $41.52 $42.56 7th Six Months 7 $41.79 $42.83 $43.90 8th Six Months 8 $43.08 $44.16 $45.26 9th Six Months 9 $45.96 $47.11 $48.29

7024 App Comm Electrician 1 $34.12 $34.97 $35.84 2nd Six Months 2 $35.51 $36.40 $37.31 3rd Six Months 3 $36.70 $37.62 $38.56 4th Six Months 4 $37.98 $38.93 $39.90 5th Six Months 5 $39.28 $40.26 $41.27 6th Six Months 6 $40.51 $41.52 $42.56 7th Six Months 7 $41.79 $42.83 $43.90 8th Six Months 8 $43.08 $44.16 $45.26 9th Six Months 9 $45.96 $47.11 $48.29

7085 Meter Tester 1 $27.21 $27.89 $28.59 2nd Six Months 2 $28.47 $29.18 $29.91

7093 Material Utility Technician 1 $25.49 $26.13 $26.78 2nd Six Months 2 $26.50 $27.16 $27.84 3rd Six Months 3 $27.47 $28.16 $28.86

7094 Maintenance Technician 1 $30.38 $31.14 $31.92 2nd Six Months 2 $31.40 $32.19 $32.99

Page 9 of 13 Page 30 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

TRANSMISSION & DISTRIBUTION – WAGES (2018 through 2021) 1st Pay 1st Pay 1st Pay JOB Period After Period After Period After JOB TITLE STEP CODE 8/21/2018 08/31/2019 08/31/2020 2.0% 2.5% 2.5% 3rd Six Months 3 $32.39 $33.20 $34.03 4th Six Months 4 $33.34 $34.17 $35.02 5th Six Months 5 $34.34 $35.20 $36.08 6th Six Months 6 $35.35 $36.23 $37.14 7th Six Months 7 $36.27 $37.18 $38.11

7095 Chief, Crew 1 $41.54 $42.58 $43.64 2nd Six Months 2 $42.50 $43.56 $44.65 3rd Six Months 3 $43.37 $44.45 $45.56 4th Six Months 4 $44.14 $45.24 $46.37 5th Six Months 5 $45.07 $46.20 $47.36

7096 Maintenance Utility Tech 1 $18.63 $19.10 $19.58 2nd Six Months 2 $19.65 $20.14 $20.64 3rd Six Months 3 $20.59 $21.10 $21.63 4th Six Months 4 $21.57 $22.11 $22.66 5th Six Months 5 $22.57 $23.13 $23.71 6th Six Months 6 $23.54 $24.13 $24.73 7th Six Months 7 $24.52 $25.13 $25.76

7097 Facilitator, Design & Const 1 $48.73 $49.95 $51.20

7098 Tech, Multi-Trade I 1 $27.01 $27.69 $28.38

7099 Tech, Multi-Trade II 1 $31.98 $32.78 $33.60

7100 Tech, Multi-Trade III (Lead) 1 $39.09 $40.07 $41.07

Page 10 of 13 Page 31 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

GENERATION – WAGES (2018 through 2021) 1st Pay 1st Pay 1st Pay JOB Period After Period After Period After JOB TITLE TIER CODE 08/31/2018 08/31/2019 08/31/2020 2.0% 2.5% 2.5% 6910 Combined Cycle Operator 1 $41.75 $42.79 $43.86 2 $49.32 $50.55 $51.81 3 $52.08 $53.38 $54.71 4 $53.65 $54.99 $56.36

6920 Production Technician 1 $41.75 $42.79 $43.86 2 $49.32 $50.55 $51.81 3 $52.08 $53.38 $54.71 4 $53.65 $54.99 $56.36

Page 11 of 13 Page 32 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

System Operator Classifications (2018 through 2021) 1st Pay 1st Pay 1st Pay Period Period Period Job Family Classification Step* After After After Code 8/31/2018 8/31/2019 8/31/2020 2.0% 2.5% 2.5% Dispatch 4016 Dispatcher Assistant Start 1 Year $32.83 $33.65 $34.49 Assistant 4017 Dispatcher Assistant 1 Year $33.68 $34.52 $35.38 4018 Senior Dispatcher Assistant $35.97 $36.87 $37.79

Distribution 4019 Operator Start, Distribution 2 Year $49.90 $51.15 $52.43 4020 Operator, Distribution 2 Year $52.06 $53.36 $54.69 4021 Senior Operator, Distribution Vacancy** $55.05 $56.43 $57.84

Transmission Operator Vacancy** Transmission 4024 Trainee $55.82 $57.22 $58.65 NERC*** 4023 Operator, Transmission

Training 4006 Trainer, System Operator $56.82 $58.24 $59.70

* Step is defined as time required at each classification level ** Vacancy in the next higher classification is required for progression *** NERC Certification is required for progression to Transmission Operator

Page 12 of 13 Page 33 of 247 Exhibit Holder-Direct-2A

NV Energy – IBEW L396 COLLECTIVE BARGAINING AGREEMENT 09/24/2013– 06/30/2021

SUPPLY CHAIN – WAGES (2018 through 2021) 1st Pay 1st Pay 1st Pay JOB Period After Period After Period After JOB TITLE TIER CODE 08/31/2018 08/31/2019 08/31/2020 2.0% 2.5% 2.5% 6088 Material Specialist 1 $34.40 $35.26 $36.14 2 $35.69 $36.58 $37.49 3 $37.74 $38.68 $39.65

6087 Lead Material Specialist 1 $40.89 $41.91 $42.96

Page 13 of 13 Page 34 of 247 EXHIBIT HOLDER-DIRECT-2B

Page 35 of 247 Exhibit Holder-Direct-2B

Wage Reopener and Contract Extension Agreement Ratified by Members of Local 396 on September 29, 2015

The key terms of the agreement are:

 Contract Extension Term: The current collective bargaining agreement, which is set to expire on August 31, 2017, is extended through June 30, 2021.

 Wages: o Effective first pay period after August 31, 2016, 2% base wage increase o Effective first pay period after August 31, 2017, 2% base wage increase o Effective first pay period after August 31, 2018, 2% base wage increase o Effective first pay period after August 31, 2019, 2.5% base wage increase o Effective first pay period after August 31, 2020, 2.5% base wage increase

 Safety Bonus: Current safety bonus requirements and criteria will be extended through the term of the extension as follows: o If earned, 1% lump sum (based on total hours worked) will be paid by April 15, 2017 o If earned, 1% lump sum (based on total hours worked) will be paid by April 15, 2018 o If earned, 1% lump sum (based on total hours worked) will be paid by April 15, 2019 o If earned, 1% lump sum (based on total hours worked) will be paid by April 15, 2020 o If earned, 1% lump sum (based on total hours worked) will be paid by April 15, 2021

 Drug & Alcohol Policy: Adoption of the Company’s Drug & Alcohol Policy – Non- Represented Employees effective January 1, 2016.

 Active Medical Plans: The Company and Union will continue to monitor the costs and effectiveness of the current medical plans and effectiveness of the wellness program. Should the projected costs for the medical plans exceed the normal medical trend or the wellness program not yield significant savings, the Company and Union will meet and shall enact plan design changes and changes to the wellness program to reduce costs below trend for each applicable contract year. The Company and Union further agree to study the wellness program and propose additional wellness criteria.

 New Hire – Retirement Contributions: In lieu of offering a cash balance pension plan benefit to new hires (hired after January 1, 2016), new hires will instead receive a 4% contribution to their defined contribution account.

Page 1 of 1 Page 36 of 247 EXHIBIT HOLDER-DIRECT-3A

Page 37 of 247 Exhibit Holder-Direct-3A

NV Energy 2019 Non-Represented Salary Structure Minimum Annual Midpoint Annual Maximum Annual Grade Salary Salary Salary 7 $25,000 $30,500 $35,900 8 $28,900 $35,200 $41,500 9 $33,200 $40,500 $47,800 10 $38,100 $46,500 $55,100 11 $43,700 $53,300 $63,300 12 $50,300 $61,400 $73,100 13 $57,900 $70,600 $84,200 14 $66,600 $81,200 $97,000 15 $76,500 $93,300 $111,800 15N $88,000 $107,300 $128,900 16 $88,000 $107,300 $128,900 16N $95,300 $116,200 $138,700 17 $101,300 $123,500 $148,500 18 $116,400 $141,900 $171,100 19 $133,800 $163,200 $197,300 20 $154,100 $187,900 $227,500 21 $177,100 $216,000 $261,900 22 $203,600 $248,300 $301,800 23 $234,300 $285,700 $347,900 24 $269,300 $328,400 $401,000 25 $309,800 $377,800 $462,000 26 $319,400 $425,900 $532,200

Page 38 of 247 EXHIBIT HOLDER-DIRECT-3B

Page 39 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Accountant $ 59,842 6% $ 63,432 $ 56,032 6% $ 59,394 Accounting Analysis Specialist $ 107,400 10% $ 118,140 $ 107,894 13% $ 121,920 Accounts Payable Administrator $ 71,215 6% $ 75,488 $ 61,519 10% $ 67,671 Acctg Anlst Spclt Benft Plans $ 102,200 10% $ 112,420 $ 90,350 10% $ 99,385 AMI Applctn Administrator III $ 93,227 10% $ 102,550 $ 107,482 10% $ 118,230 Application Administrator III $ 95,424 10% $ 104,966 $ 107,482 10% $ 118,230 Application Administrator IV $ 114,221 10% $ 125,643 $ 129,991 15% $ 149,490 Assoc Buyer $ 57,278 6% $ 60,715 $ 58,570 7% $ 62,670 Assoc Contract Mgmt Analyst $ 65,003 6% $ 68,903 $ 61,788 8% $ 66,731 Assoc Design Tech $ 59,208 5% $ 62,168 $ 63,525 6% $ 67,337 Assoc Info Records Mgmt Anlst $ 61,115 6% $ 64,782 $ 52,630 10% $ 57,893 Assoc NERC Compliance Anlst $ 78,856 6% $ 83,587 $ 78,117 9% $ 85,148 Assoc Proj Mgr, DSM $ 71,940 6% $ 76,256 $ 79,729 9% $ 86,905 Assoc Right of Way Admin $ 75,063 6% $ 79,567 $ 77,302 10% $ 85,032 Assoc Vegetation Mgmt Admin $ 72,722 6% $ 77,085 $ 76,052 10% $ 83,277 Auditor $ 71,079 10% $ 78,187 $ 74,739 8% $ 80,718 Bus Development Coordinator $ 54,723 6% $ 58,006 $ 59,555 6% $ 63,128 Bus Sys Anlst I - Cust Ops $ 62,980 5% $ 66,129 $ 63,138 8% $ 68,189 Bus Sys Anlst II - Cust Ops $ 73,549 6% $ 77,962 $ 76,553 10% $ 84,208 Bus Sys Anlst III - Cust Ops $ 87,788 10% $ 96,566 $ 101,138 10% $ 111,252 Bus Sys Anlst III - Finance $ 90,400 10% $ 99,440 $ 101,138 10% $ 111,252 Bus Sys Anlst IV - Cust Ops $ 111,540 10% $ 122,694 $ 119,795 10% $ 131,775 Bus Systems Analyst I - IT $ 69,160 5% $ 72,618 $ 63,138 8% $ 68,189 Bus Systems Analyst III - IT $ 90,690 10% $ 99,759 $ 101,138 10% $ 111,252 Bus Systems Analyst IV - IT $ 111,492 10% $ 122,641 $ 119,795 10% $ 131,775 Business Administrator $ 80,127 6% $ 84,935 $ 67,227 6% $ 71,261 Business Analyst - Accounting $ 75,390 6% $ 79,913 $ 67,470 8% $ 72,868 Business Analyst - Cust Ops $ 72,654 6% $ 77,013 $ 72,983 8% $ 78,822 Business Analyst - Delivery $ 74,473 6% $ 78,941 $ 72,983 8% $ 78,822 Business Analyst - Finance $ 70,900 6% $ 75,154 $ 70,227 8% $ 75,845 Business Analyst II - Delivery $ 86,996 10% $ 95,696 $ 95,747 10% $ 105,322 Business Analyst II - Transm $ 81,962 10% $ 90,158 $ 95,747 10% $ 105,322 Business Analyst Lead - ED $ 100,067 10% $ 110,074 $ 107,894 13% $ 121,920 Business Coord - Dist Design $ 63,132 5% $ 66,289 $ 58,497 6% $ 62,007 Business Coord- Land Serv $ 53,385 5% $ 56,054 $ 58,497 6% $ 62,007 Business Coord, Plant $ 54,891 5% $ 57,635 $ 58,497 6% $ 62,007 Business Coordinator $ 50,863 6% $ 53,915 $ 57,360 6% $ 60,802 Business Coordinator - Finance $ 63,299 6% $ 67,097 $ 57,784 6% $ 61,251 Business Development Adviser $ 83,244 10% $ 91,568 $ 85,582 0% $ 85,582 Business Development Executive $ 118,623 10% $ 130,485 $ 126,766 15% $ 145,781 Buyer $ 66,411 10% $ 73,052 $ 73,076 7% $ 78,484 CIS Training Analyst $ 64,702 6% $ 68,584 $ 70,430 6% $ 74,656 Compensation Adviser $ 105,000 10% $ 115,500 $ 97,241 10% $ 106,965 Computer Operator $ 50,178 5% $ 52,687 $ 70,297 0% $ 70,297 Construction Administrator $ 74,927 10% $ 82,419 $ 80,201 9% $ 87,154 Contract Admin II - Delivery $ 74,669 10% $ 82,136 $ 91,689 10% $ 100,858 Contract Mgmt Analyst $ 78,990 10% $ 86,889 $ 73,380 9% $ 79,984 Controller $ 161,396 20% $ 193,675 $ 184,284 25% $ 229,434

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 1 of 9 Page 40 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Corp Comm Coordinator $ 61,254 6% $ 64,929 $ 57,784 6% $ 61,251 Corp Security Officer $ 40,206 5% $ 42,217 $ 48,010 8% $ 51,851 Corporate Chemist $ 126,999 10% $ 139,699 $ 93,283 0% $ 93,283 Cust Programs/Serv Analyst $ 66,196 6% $ 70,168 $ 68,782 7% $ 73,597 Customer Communications Spclst $ 60,129 6% $ 63,737 $ 61,732 8% $ 66,362 Customer Energy Analyst $ 70,052 6% $ 74,255 $ 79,504 9% $ 86,659 Customer Self Srvcs Analyst $ 76,329 10% $ 83,962 $ 85,608 10% $ 94,169 Customer Service Hub Admin $ 69,904 6% $ 74,098 $ 66,355 9% $ 72,327 Cyber Security Threat Anlst IV $ 110,703 10% $ 121,773 $ 126,327 15% $ 145,276 Database Analyst III $ 105,557 10% $ 116,113 $ 118,199 11% $ 131,201 Database Analyst IV $ 130,802 10% $ 143,882 $ 139,779 10% $ 153,757 Deputy General Counsel - Rgltn $ 203,000 20% $ 243,600 $ 261,823 35% $ 353,461 Design Tech $ 70,229 6% $ 74,443 $ 75,603 6% $ 80,139 Dir, Asset Montrg & Diagnostic $ 169,301 20% $ 203,161 $ 195,406 25% $ 244,258 Dir, Billing Ops & Credit $ 142,920 20% $ 171,504 $ 161,986 25% $ 202,483 Dir, Corporate Insurance $ 130,806 20% $ 156,967 $ 140,933 16% $ 163,482 Dir, Corporate Taxation $ 174,574 20% $ 209,489 $ 171,093 20% $ 205,312 Dir, Cust Solutions - Delivery $ 150,704 20% $ 180,845 $ 159,415 20% $ 191,298 Dir, Customer Contact $ 142,920 20% $ 171,504 $ 154,500 25% $ 193,125 Dir, Customer Energy Solutions $ 190,445 20% $ 228,534 $ 158,007 20% $ 189,608 Dir, Delivery Operations $ 180,081 20% $ 216,097 $ 163,473 20% $ 196,168 Dir, Delivery Operations South $ 162,028 20% $ 194,434 $ 163,473 20% $ 196,168 Dir, Delivery Ops - Districts $ 148,164 20% $ 177,797 $ 163,473 20% $ 196,168 Dir, Delivery Support $ 172,270 20% $ 206,724 $ 154,168 20% $ 185,002 Dir, Demand Side Management $ 149,700 20% $ 179,640 $ 148,215 18% $ 174,153 Dir, Dist. Design Services $ 155,162 20% $ 186,194 $ 171,436 21% $ 207,866 Dir, Distributed Engy Res Plng $ 180,373 20% $ 216,448 $ 193,788 23% $ 238,359 Dir, Emp Rel, Payroll & Staff $ 174,000 20% $ 208,800 $ 161,728 20% $ 194,074 Dir, Engineering & Proj Mgmt $ 188,486 20% $ 226,183 $ 174,765 20% $ 209,718 Dir, Enterprise Applications $ 174,261 20% $ 209,113 $ 165,899 25% $ 207,374 Dir, Financial & Corp Planning $ 161,396 20% $ 193,675 $ 171,815 22% $ 208,755 Dir, Financial Plng & Rptg $ 143,700 20% $ 172,440 $ 168,219 20% $ 201,863 Dir, Generation Support $ 170,443 20% $ 204,532 $ 193,788 23% $ 238,359 Dir, Grid Ops & Reliability $ 156,500 20% $ 187,800 $ 174,223 20% $ 209,068 Dir, Internal Audit $ 154,942 20% $ 185,930 $ 166,625 20% $ 199,950 Dir, IT Infrastructure Service $ 148,713 20% $ 178,456 $ 168,097 20% $ 201,716 Dir, Labor & Ext Relations $ 215,201 20% $ 258,241 $ 169,778 20% $ 203,734 Dir, Land Resources $ 155,990 20% $ 187,188 $ 165,329 20% $ 198,395 Dir, Major Accounts $ 163,108 20% $ 195,730 $ 164,410 25% $ 205,513 Dir, Market Interfaces $ 165,668 20% $ 198,802 $ 177,098 25% $ 221,373 Dir, Plant $ 166,970 20% $ 200,364 $ 182,124 23% $ 223,102 Dir, Plant - Valmy $ 154,373 20% $ 185,248 $ 182,124 23% $ 223,102 Dir, Power System Engineering $ 160,000 20% $ 192,000 $ 160,105 20% $ 192,126 Dir, Procurement $ 159,650 20% $ 191,580 $ 156,500 20% $ 187,800 Dir, Renewable Energy Programs $ 143,470 20% $ 172,164 $ 206,504 25% $ 258,130 Dir, Resource Planning & Analy $ 158,852 20% $ 190,622 $ 190,447 20% $ 228,536 Dir, Security & IT Compliance $ 156,559 20% $ 187,871 $ 172,484 18% $ 203,531 Dir, Substations & Tech Ops $ 150,500 20% $ 180,600 $ 173,950 20% $ 208,740

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 2 of 9 Page 41 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Dir, Telecommunications $ 148,221 20% $ 177,865 $ 163,250 16% $ 190,023 Dir, Trans System Planning $ 146,000 20% $ 175,200 $ 170,705 20% $ 204,846 Dir, Transmission Sys Support $ 172,000 20% $ 206,400 $ 173,268 23% $ 213,120 DSM Planning Specialist $ 110,050 10% $ 121,055 $ 111,974 12% $ 125,411 Eng I $ 75,104 6% $ 79,610 $ 71,314 8% $ 77,019 Eng I - Compliance $ 74,520 6% $ 78,991 $ 71,314 8% $ 77,019 Eng I - Design & Const $ 75,455 6% $ 79,982 $ 71,314 8% $ 77,019 Eng I - Design Trans/Civil $ 76,369 6% $ 80,951 $ 71,314 9% $ 77,732 Eng I - Distribution Planning $ 75,710 6% $ 80,253 $ 71,314 8% $ 77,019 Eng I - EIM Application $ 76,731 6% $ 81,335 $ 71,314 8% $ 77,019 Eng I - Real-Time Analytics $ 75,455 6% $ 79,982 $ 71,314 8% $ 77,019 Eng I - Regional Electric $ 75,704 6% $ 80,246 $ 71,314 8% $ 77,019 Eng I - Substation $ 75,779 6% $ 80,326 $ 71,314 8% $ 77,019 Eng I - Transmission $ 75,272 6% $ 79,788 $ 71,314 8% $ 77,019 Eng II - Demand Response $ 86,380 6% $ 91,563 $ 81,484 9% $ 88,818 Eng II - Design & Const $ 86,699 6% $ 91,901 $ 81,484 9% $ 88,818 Eng II - Design Trans/Civil $ 89,597 6% $ 94,973 $ 81,484 9% $ 88,818 Eng II - Distribution Planning $ 86,944 6% $ 92,161 $ 81,484 9% $ 88,818 Eng II - EIM Applications $ 88,169 6% $ 93,459 $ 81,484 9% $ 88,818 Eng II - EIM Operations $ 86,420 6% $ 91,605 $ 81,484 9% $ 88,818 Eng II - Gas Engineering $ 86,909 6% $ 92,124 $ 81,484 9% $ 88,818 Eng II - Generation $ 98,523 6% $ 104,434 $ 81,484 9% $ 88,818 Eng II - Instrument & Control $ 88,169 6% $ 93,459 $ 81,484 9% $ 88,818 Eng II - Metering $ 86,995 6% $ 92,215 $ 81,484 9% $ 88,818 Eng II - Real-Time Analytics $ 87,342 6% $ 92,582 $ 81,484 9% $ 88,818 Eng II - Regional Electric $ 89,323 6% $ 94,682 $ 81,484 10% $ 89,225 Eng II - Standards $ 86,489 6% $ 91,678 $ 81,484 9% $ 88,818 Eng II - Substation Design $ 86,699 6% $ 91,901 $ 81,484 10% $ 89,225 Eng II - System Protection $ 87,438 6% $ 92,685 $ 81,484 10% $ 89,225 Eng II - Trans Asset Mngmnt $ 89,001 6% $ 94,341 $ 81,484 9% $ 88,818 Eng II - Transmission $ 87,441 6% $ 92,687 $ 81,484 9% $ 88,818 Engineering Planning Mgr - Gas $ 124,313 15% $ 142,960 $ 146,325 15% $ 168,274 Engr I - System Protection $ 76,147 6% $ 80,715 $ 71,314 8% $ 77,019 Environmental Adviser $ 88,505 10% $ 97,356 $ 101,260 10% $ 111,386 Environmental Scientist $ 80,864 10% $ 88,950 $ 81,061 10% $ 89,167 Ethics & HR Compliance Manager $ 119,000 15% $ 136,850 $ 115,468 13% $ 129,902 Executive Assistant $ 56,984 6% $ 60,403 $ 56,388 6% $ 59,771 Executive Assistant - CEO $ 88,796 13% $ 99,896 $ 86,888 7% $ 92,970 Facilities Maintenance Spclst $ 80,144 10% $ 88,158 $ 105,869 10% $ 116,456 Financial Analysis Specialist $ 94,764 10% $ 104,240 $ 99,602 10% $ 109,562 Financial Planning Specialist $ 97,316 10% $ 107,048 $ 106,969 12% $ 119,805 Fuels Analyst II $ 95,662 10% $ 105,228 $ 87,132 10% $ 95,845 Gas Dispatcher $ 71,373 6% $ 75,655 $ 75,597 6% $ 80,133 Gas Supply Planning Lead $ 119,000 10% $ 130,900 $ 125,010 15% $ 143,762 Gas Trader $ 74,524 15% $ 85,702 $ 78,388 10% $ 85,835 Gen Construction Administrator $ 89,935 10% $ 98,929 $ 94,001 10% $ 103,401 Generation Business Manager $ 110,414 15% $ 126,976 $ 123,393 16% $ 143,136 Generation Eng & Tech Manager $ 162,209 15% $ 186,540 $ 147,112 14% $ 168,075

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 3 of 9 Page 42 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Gov Projects Administrator $ 91,530 10% $ 100,683 $ 81,212 10% $ 89,333 Graphic Specialist $ 68,230 6% $ 72,324 $ 72,231 8% $ 78,009 HR Coordinator $ 47,150 6% $ 49,979 $ 50,857 6% $ 53,908 Info Records Mgt Analyst $ 66,022 10% $ 72,624 $ 65,910 10% $ 72,171 Insurance Analyst $ 74,471 10% $ 81,918 $ 74,030 10% $ 81,433 Intrchg & EIM Operations Anlst $ 84,745 10% $ 93,219 $ 93,665 10% $ 103,032 Inventory Planner $ 77,569 10% $ 85,325 $ 71,364 9% $ 77,787 IT Architect $ 136,234 15% $ 156,669 $ 152,153 15% $ 174,976 IT Coordinator $ 50,727 6% $ 53,771 $ 58,497 6% $ 62,007 IT Service Desk Support II $ 68,507 5% $ 71,932 $ 66,429 8% $ 71,743 IT Service Desk Support III $ 92,339 6% $ 97,880 $ 87,098 10% $ 95,808 IT&T Project Mgr II $ 121,606 10% $ 133,767 $ 129,256 13% $ 146,059 Joint Use Contracts Analyst $ 74,416 10% $ 81,857 $ 91,689 10% $ 100,858 Labor Relations Manager $ 114,250 15% $ 131,388 $ 123,731 15% $ 142,291 Land Surveyor $ 92,319 10% $ 101,550 $ 96,133 10% $ 105,746 Land Technician I $ 70,783 6% $ 75,029 $ 64,974 8% $ 70,172 Legal Collection Administrator $ 75,174 6% $ 79,684 $ 69,204 8% $ 74,740 Lines Const Maint Admin $ 80,375 10% $ 88,413 $ 94,001 10% $ 103,401 Load Research Spclst $ 105,869 10% $ 116,456 $ 117,051 15% $ 134,609 Major Account Executive $ 105,416 10% $ 115,958 $ 117,156 15% $ 134,729 Manager, IT Audit $ 124,986 15% $ 143,734 $ 136,301 15% $ 156,746 Mapping Systems Admin - Gas $ 81,932 10% $ 90,125 $ 86,297 10% $ 94,927 Market Fundamentals Lead $ 120,100 10% $ 132,110 $ 135,325 18% $ 160,130 Marketing & PR Adviser $ 105,336 10% $ 115,870 $ 94,730 10% $ 104,203 Mgr, Accounting-Energy Trading $ 117,875 15% $ 135,556 $ 113,206 14% $ 129,055 Mgr, Area Service $ 126,016 15% $ 144,918 $ 109,655 10% $ 120,621 Mgr, Bill/Credit Ops & Systems $ 138,942 15% $ 159,783 $ 123,413 15% $ 141,925 Mgr, Billing & Credit Operatio $ 117,242 15% $ 134,828 $ 124,576 15% $ 143,262 Mgr, Business Systems $ 148,489 15% $ 170,762 $ 139,381 15% $ 160,288 Mgr, CIS $ 133,429 15% $ 153,443 $ 139,856 15% $ 160,834 Mgr, Claims $ 118,213 15% $ 135,945 $ 125,376 15% $ 144,182 Mgr, Coal Ops & Procurement $ 159,041 15% $ 182,897 $ 153,538 20% $ 184,246 Mgr, Community Relations $ 106,560 15% $ 122,544 $ 129,176 15% $ 148,552 Mgr, Contract Management $ 111,510 15% $ 128,237 $ 142,933 16% $ 165,088 Mgr, Corporate Tax $ 130,500 15% $ 150,075 $ 129,382 15% $ 148,789 Mgr, Customer Contact Ops $ 108,387 15% $ 124,645 $ 112,895 15% $ 129,829 Mgr, Customer Contact Ops $ 108,387 15% $ 124,645 $ 112,895 15% $ 129,829 Mgr, DSM Customer Engagement $ 121,348 15% $ 139,550 $ 131,574 15% $ 151,310 Mgr, DSM Program Delivery $ 123,580 15% $ 142,117 $ 131,574 15% $ 151,310 Mgr, DSM Services $ 123,021 15% $ 141,474 $ 131,574 15% $ 151,310 Mgr, Electric Coor & Insp $ 139,364 15% $ 160,269 $ 132,803 15% $ 152,723 Mgr, Entrprs Archtctr & Intg $ 154,294 15% $ 177,438 $ 152,153 15% $ 174,976 Mgr, Environmental Services $ 138,541 15% $ 159,322 $ 138,034 20% $ 165,641 Mgr, ERP $ 140,626 15% $ 161,720 $ 139,856 15% $ 160,834 Mgr, External Financial Rptg $ 118,851 15% $ 136,679 $ 135,763 15% $ 156,127 Mgr, Facilities Maint & Srvcs $ 110,063 15% $ 126,572 $ 120,836 15% $ 138,961 Mgr, Fin Plng & Anls O&M/Captl $ 118,800 15% $ 136,620 $ 118,152 15% $ 135,875 Mgr, Fleet Services $ 111,872 15% $ 128,652 $ 117,685 14% $ 133,572

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 4 of 9 Page 43 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Mgr, Fuel & Pchd Power Acctg $ 147,950 15% $ 170,143 $ 127,213 15% $ 146,295 Mgr, Gas Const. & Maint $ 117,649 15% $ 135,296 $ 119,970 13% $ 134,966 Mgr, Gas Distr Engineering $ 120,640 15% $ 138,736 $ 133,043 15% $ 152,999 Mgr, Gas Ops & Compliance $ 121,146 15% $ 139,318 $ 119,970 13% $ 134,966 Mgr, Gas Service Damage Prev $ 116,584 15% $ 134,072 $ 119,970 13% $ 134,966 Mgr, Gas Services Operations $ 120,848 15% $ 138,975 $ 119,970 13% $ 134,966 Mgr, GIS & Mapping $ 123,541 15% $ 142,072 $ 105,117 10% $ 115,629 Mgr, Infrastructure Security $ 93,731 15% $ 107,791 $ 121,416 15% $ 139,628 Mgr, Infrastructure Security $ 94,638 15% $ 108,834 $ 121,416 15% $ 139,628 Mgr, Internal Audit $ 118,137 15% $ 135,858 $ 133,975 20% $ 160,770 Mgr, Internal Financial Rptg $ 131,300 15% $ 150,995 $ 130,111 15% $ 149,628 Mgr, Land Resources $ 131,677 15% $ 151,429 $ 129,040 15% $ 148,396 Mgr, Load Forecasting $ 141,418 15% $ 162,631 $ 132,489 13% $ 150,150 Mgr, Local Government Affairs $ 122,725 15% $ 141,134 $ 131,166 15% $ 150,841 Mgr, Maintenance $ 132,262 15% $ 152,101 $ 132,652 15% $ 152,550 Mgr, Major Accounts $ 129,279 15% $ 148,670 $ 121,539 12% $ 136,124 Mgr, Major Projects - Delivery $ 153,575 15% $ 176,611 $ 138,345 15% $ 159,097 Mgr, Meter Applications & Ops $ 133,602 15% $ 153,642 $ 136,833 15% $ 157,358 Mgr, Mkt Operations & Trading $ 143,237 25% $ 179,046 $ 154,625 15% $ 177,819 Mgr, NERC Compliance $ 131,221 15% $ 150,904 $ 134,079 15% $ 154,191 Mgr, Network $ 149,956 15% $ 172,449 $ 136,582 15% $ 157,069 Mgr, Operations $ 132,286 15% $ 152,129 $ 134,200 15% $ 154,330 Mgr, Organizational Dev $ 123,000 15% $ 141,450 $ 134,477 15% $ 154,649 Mgr, Payroll $ 124,950 15% $ 143,693 $ 119,140 15% $ 137,011 Mgr, Plant Accounting $ 128,550 15% $ 147,833 $ 127,213 15% $ 146,295 Mgr, Plant Eng & Tech $ 144,866 15% $ 166,596 $ 142,701 15% $ 164,106 Mgr, Portfolio Analytics $ 141,738 25% $ 177,173 $ 154,670 20% $ 185,604 Mgr, Procurement $ 120,415 15% $ 138,477 $ 131,421 15% $ 151,134 Mgr, Procurement Bus Controls $ 112,400 15% $ 129,260 $ 134,174 18% $ 157,654 Mgr, Project Controls $ 110,746 15% $ 127,358 $ 135,061 20% $ 162,073 Mgr, Rule 9 & JU Telc Cont Adm $ 126,782 15% $ 145,799 $ 132,236 15% $ 152,071 Mgr, Standards $ 147,050 15% $ 169,108 $ 131,985 15% $ 151,783 Mgr, Sub Constr Maint $ 150,884 15% $ 173,517 $ 138,205 15% $ 158,936 Mgr, Subst Engineering $ 138,922 15% $ 159,760 $ 136,413 15% $ 156,875 Mgr, Supt Svcs & Corp Rcds $ 106,500 15% $ 122,475 $ 108,555 15% $ 124,838 Mgr, System Protection Enginrg $ 129,135 15% $ 148,505 $ 141,862 15% $ 163,141 Mgr, T&D Operations $ 136,315 15% $ 156,762 $ 140,487 15% $ 161,560 Mgr, T&D Work/Asset Mgmt Syst $ 137,685 15% $ 158,338 $ 145,684 15% $ 167,537 Mgr, Telecom Syst Engineering $ 129,587 15% $ 149,025 $ 137,967 15% $ 158,662 Mgr, Transmission Bus Srvcs $ 117,000 15% $ 134,550 $ 131,780 15% $ 151,547 Mgr, Transmission Scheduling $ 123,329 15% $ 141,828 $ 145,090 17% $ 169,030 Mgr, Working Capital $ 132,712 15% $ 152,619 $ 123,056 14% $ 140,284 Mgr,Grid Reliablty Outage Mgmt $ 130,472 15% $ 150,043 $ 141,536 15% $ 162,766 Network Engineer II $ 90,149 6% $ 95,558 $ 98,264 0% $ 98,264 Network Engineer III $ 101,144 10% $ 111,259 $ 116,759 0% $ 116,759 Occupational Nurse $ 103,753 15% $ 119,316 $ 89,210 7% $ 95,009 Office Supervisor, Legal $ 98,704 13% $ 111,042 $ 89,550 10% $ 98,505 Operations Analyst I $ 56,264 5% $ 59,077 $ 82,418 5% $ 86,539

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 5 of 9 Page 44 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Operations Analyst II $ 68,607 5% $ 72,037 $ 102,454 10% $ 112,699 Paralegal $ 78,711 6% $ 83,434 $ 72,397 8% $ 78,189 Payroll Analyst $ 71,614 10% $ 78,775 $ 61,402 6% $ 65,086 Planning Technician $ 63,193 6% $ 66,985 $ 63,385 5% $ 66,763 Plant Operator $ 120,880 5% $ 126,924 $ 85,875 0% $ 85,875 Plant Tech/Diagnst Specialist $ 110,727 15% $ 127,335 $ 102,779 10% $ 113,057 Plant Warehouse Supervisor $ 79,481 10% $ 87,429 $ 82,325 8% $ 88,911 Portfolio Optimizatn Anlst II $ 87,390 10% $ 96,129 $ 101,235 12% $ 112,877 Power Trader II - Gen Desk $ 106,377 20% $ 127,652 $ 88,034 10% $ 96,837 Pricing Analyst $ 74,099 6% $ 78,544 $ 88,245 10% $ 97,070 Principal Eng - Delivery $ 131,289 10% $ 144,418 $ 124,547 13% $ 140,738 Principal Eng - Dist Planning $ 122,602 10% $ 134,862 $ 124,547 13% $ 140,738 Principal Eng - Standards $ 126,175 10% $ 138,793 $ 124,547 13% $ 140,738 Principal Eng - Substation $ 138,293 10% $ 152,122 $ 124,547 13% $ 140,738 Principal Eng - System Protect $ 133,543 10% $ 146,897 $ 124,547 13% $ 140,738 Principal Eng - Transmission $ 125,274 10% $ 137,801 $ 124,547 13% $ 140,738 Principal Engr - Dist Plng Sys $ 134,316 15% $ 154,463 $ 124,547 13% $ 140,738 Production Cost Modeling Lead $ 137,650 10% $ 151,415 $ 118,550 13% $ 133,570 Programmer II $ 76,276 6% $ 80,853 $ 80,798 8% $ 87,262 Programmer III $ 102,969 10% $ 113,266 $ 102,996 10% $ 113,296 Programmer IV $ 113,380 10% $ 124,718 $ 121,235 10% $ 133,359 Proj Dir, Technology Systems $ 180,067 20% $ 216,080 $ 163,250 16% $ 190,023 Proj Mgr - Rnwble Energy $ 105,760 10% $ 116,336 $ 119,777 15% $ 137,744 Proj Mgr - Trans Proj Del Svcs $ 100,153 10% $ 110,168 $ 109,513 12% $ 122,655 Proj Mgr, Customer Service $ 108,248 10% $ 119,073 $ 99,686 10% $ 109,655 Proj Mgr, Trading Application $ 123,633 10% $ 135,996 $ 120,506 13% $ 135,569 Project Director $ 152,496 20% $ 182,995 $ 154,775 23% $ 189,599 Project Mgr - Delivery $ 97,762 10% $ 107,539 $ 112,117 12% $ 125,010 Project Mgr - DSM $ 83,588 10% $ 91,947 $ 95,999 10% $ 105,599 Project Mgr, Regulatory $ 87,050 10% $ 95,755 $ 99,686 10% $ 109,655 Project Mgr, Transm Proj Dlvry $ 96,115 10% $ 105,727 $ 108,601 13% $ 122,719 Pwr & Gas Trdg Spclst II $ 88,500 10% $ 97,350 $ 77,834 10% $ 85,617 Recruiting Coordinator $ 51,404 6% $ 54,488 $ 60,309 8% $ 65,134 Recruitment Adviser $ 94,175 10% $ 103,593 $ 91,592 10% $ 100,751 Regulatory Ops Coord $ 57,780 5% $ 60,669 $ 58,497 6% $ 62,007 Resource Optimization Manager $ 158,911 25% $ 198,639 $ 153,412 15% $ 176,424 Right of Way Agent $ 74,830 10% $ 82,313 $ 77,302 10% $ 85,032 Safety & Health Supv $ 110,985 13% $ 124,858 $ 122,020 10% $ 134,222 Security Administrator $ 60,669 6% $ 64,309 $ 66,293 6% $ 70,271 Security Analyst II $ 87,452 6% $ 92,699 $ 81,058 10% $ 89,164 Security Analyst III $ 104,489 10% $ 114,938 $ 106,971 10% $ 117,668 Sr Accountant $ 64,359 6% $ 68,220 $ 67,541 10% $ 74,295 Sr Accounting Coordinator $ 55,000 6% $ 58,300 $ 51,742 6% $ 54,847 Sr Attorney $ 168,593 20% $ 202,311 $ 176,822 20% $ 212,186 Sr Attorney - Federal Regulat $ 201,880 20% $ 242,256 $ 176,822 20% $ 212,186 Sr Audio/Visual Srvcs Spclst $ 83,253 10% $ 91,578 $ 73,836 9% $ 80,481 Sr Auditor $ 85,677 10% $ 94,245 $ 91,394 10% $ 100,533 Sr Benefits Admntr $ 69,413 6% $ 73,578 $ 71,598 8% $ 77,326

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 6 of 9 Page 45 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Sr Benefits Analyst $ 97,600 10% $ 107,360 $ 90,843 10% $ 99,927 Sr Business Analyst - Accoutig $ 91,251 10% $ 100,376 $ 95,747 10% $ 105,322 Sr Business Analyst - Cust Ops $ 94,169 10% $ 103,586 $ 107,894 13% $ 121,920 Sr Business Analyst - Delivery $ 103,663 10% $ 114,029 $ 107,894 13% $ 121,920 Sr Business Analyst - Finance $ 86,133 10% $ 94,747 $ 93,049 10% $ 102,354 Sr Business Analyst - Gen $ 101,659 10% $ 111,825 $ 106,969 12% $ 119,805 Sr Business Analyst - Renewabl $ 100,875 10% $ 110,963 $ 95,747 10% $ 105,322 Sr Business Analyst - Transm $ 98,690 10% $ 108,559 $ 106,969 12% $ 119,805 Sr Buyer $ 84,855 10% $ 93,341 $ 88,486 10% $ 97,335 Sr Claims Investigator $ 72,266 10% $ 79,493 $ 87,418 10% $ 96,160 Sr Community Relations Adviser $ 76,900 10% $ 84,590 $ 76,685 8% $ 82,820 Sr Construction Administrator $ 97,650 10% $ 107,415 $ 106,991 11% $ 119,113 Sr Contract Adm - Delivery $ 100,778 10% $ 110,855 $ 108,601 13% $ 122,719 Sr Contract Mgmt Analyst $ 90,804 10% $ 99,884 $ 100,145 12% $ 111,662 Sr Contract Spclst - Transm $ 112,719 10% $ 123,991 $ 108,601 13% $ 122,719 Sr Corp Comm Spclst $ 78,413 10% $ 86,254 $ 92,810 10% $ 102,091 Sr Corp Security Officer $ 44,689 5% $ 46,923 $ 57,498 5% $ 60,373 Sr Customer Care Adviser $ 85,496 10% $ 94,046 $ 96,105 10% $ 105,716 Sr Customer Contact Analyst $ 78,700 10% $ 86,570 $ 68,448 9% $ 74,608 Sr Customer Self Service Anlst $ 91,302 10% $ 100,432 $ 85,608 10% $ 94,169 Sr Design Tech $ 84,828 10% $ 93,311 $ 92,114 10% $ 101,325 Sr Emergency Mgmt Admin $ 93,694 10% $ 103,063 $ 90,213 8% $ 97,430 Sr Eng - Asset Performance $ 107,811 10% $ 118,592 $ 102,779 10% $ 113,057 Sr Eng - Compliance $ 113,583 10% $ 124,941 $ 103,635 10% $ 113,999 Sr Eng - Delivery $ 118,154 10% $ 129,969 $ 102,779 10% $ 113,057 Sr Eng - Design Trans/Civil $ 105,349 10% $ 115,884 $ 102,779 10% $ 113,057 Sr Eng - Distribution Design $ 99,712 10% $ 109,683 $ 102,779 10% $ 113,057 Sr Eng - Distribution Planning $ 108,879 10% $ 119,767 $ 102,779 10% $ 113,057 Sr Eng - EIM Operations $ 113,340 10% $ 124,674 $ 102,779 10% $ 113,057 Sr Eng - Gas $ 103,279 10% $ 113,607 $ 100,764 10% $ 110,840 Sr Eng - Generation $ 122,190 10% $ 134,409 $ 102,779 10% $ 113,057 Sr Eng - Metering $ 102,961 10% $ 113,257 $ 102,779 10% $ 113,057 Sr Eng - Network $ 119,348 10% $ 131,282 $ 102,779 10% $ 113,057 Sr Eng - Plant $ 113,932 10% $ 125,326 $ 102,779 10% $ 113,057 Sr Eng - Regional Electric $ 101,543 10% $ 111,697 $ 102,779 10% $ 113,057 Sr Eng - Renewables Plng $ 100,153 10% $ 110,168 $ 102,779 10% $ 113,057 Sr Eng - Standards $ 101,601 10% $ 111,761 $ 102,779 9% $ 112,029 Sr Eng - Subs Const & Mtce $ 109,943 10% $ 120,937 $ 102,779 10% $ 113,057 Sr Eng - Substation $ 124,889 10% $ 137,377 $ 102,779 10% $ 113,057 Sr Eng - Substation Design $ 110,420 10% $ 121,462 $ 102,779 10% $ 113,057 Sr Eng - System Protection $ 106,769 10% $ 117,446 $ 102,779 10% $ 113,057 Sr Eng - Transmission $ 114,878 10% $ 126,366 $ 102,779 10% $ 113,057 Sr Environmental Adviser $ 107,051 10% $ 117,756 $ 117,601 15% $ 135,241 Sr Environmental Scientist $ 100,459 10% $ 110,505 $ 101,260 10% $ 111,386 Sr ESCC System Specialist $ 115,223 10% $ 126,746 $ 128,271 12% $ 143,022 Sr EWAM Specialist $ 104,346 13% $ 117,389 $ 119,795 10% $ 131,775 Sr Executive Assistant $ 64,306 6% $ 68,165 $ 56,388 6% $ 59,771 Sr FERC Compliance Analyst $ 105,904 10% $ 116,494 $ 118,934 15% $ 136,774

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 7 of 9 Page 46 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Sr Gas Administrator $ 100,934 10% $ 111,028 $ 96,798 10% $ 106,478 Sr Gas Dispatcher $ 81,395 6% $ 86,279 $ 83,498 0% $ 83,498 Sr Gas Trader $ 118,955 25% $ 148,694 $ 115,689 10% $ 127,258 Sr Gen Operations Analyst $ 108,112 10% $ 118,923 $ 100,145 12% $ 111,662 Sr Government Affairs Adviser $ 96,216 10% $ 105,838 $ 104,217 10% $ 114,639 Sr HR Business Partner $ 108,763 10% $ 119,639 $ 112,395 13% $ 127,006 Sr HRIS Analyst $ 97,600 10% $ 107,360 $ 95,270 10% $ 104,797 Sr Info Records Mgmt Analyst $ 83,735 10% $ 92,109 $ 79,496 10% $ 87,446 Sr Insurance Analyst $ 82,200 10% $ 90,420 $ 87,396 10% $ 96,136 Sr Interior Facilities Planner $ 77,196 10% $ 84,916 $ 74,569 8% $ 80,535 Sr Inventory Analyst $ 88,901 10% $ 97,791 $ 88,122 10% $ 96,934 Sr Inventory Planner $ 92,290 10% $ 101,518 $ 89,667 10% $ 98,634 Sr IT Project Controls Anlst $ 87,356 10% $ 96,092 $ 95,747 10% $ 105,322 Sr Legal Admin Assistant $ 59,402 6% $ 62,966 $ 68,551 7% $ 73,007 Sr Load Research Analyst $ 81,985 10% $ 90,184 $ 97,377 10% $ 107,115 Sr NERC CIP Cmpl Spclst $ 107,100 10% $ 117,810 $ 114,662 13% $ 128,995 Sr Payroll Specialist $ 59,189 6% $ 62,740 $ 59,371 6% $ 62,933 Sr Platform Systems Admin - IT $ 121,600 10% $ 133,760 $ 125,526 10% $ 138,079 Sr Power Trader $ 123,534 25% $ 154,418 $ 115,689 10% $ 127,258 Sr Power Trader - Gen Desk $ 116,291 25% $ 145,364 $ 125,804 20% $ 150,965 Sr Proj Mgr - Renewable Energy $ 124,870 10% $ 137,357 $ 119,777 15% $ 137,744 Sr Project Control - Delivery $ 94,123 10% $ 103,535 $ 95,747 10% $ 105,322 Sr Project Manager-Delivery $ 123,830 15% $ 142,404 $ 119,777 15% $ 137,744 Sr Project Mgr, DSM $ 103,284 10% $ 113,613 $ 111,974 12% $ 125,411 Sr Project Mgr, Generation $ 133,856 15% $ 153,934 $ 140,360 15% $ 161,414 Sr Project Mgr, Regulatory $ 115,431 10% $ 126,974 $ 119,777 15% $ 137,744 Sr Property Mgmt Administrator $ 85,715 10% $ 94,287 $ 92,318 10% $ 101,550 Sr Qual Assur Anlyst -Delivery $ 104,225 10% $ 114,648 $ 95,984 10% $ 105,582 Sr Quantitative Analyst $ 111,091 10% $ 122,200 $ 110,263 12% $ 122,943 Sr Right of Way Agent $ 87,371 10% $ 96,108 $ 96,133 10% $ 105,746 Sr Risk Control Analyst $ 95,827 10% $ 105,410 $ 90,816 10% $ 99,898 Sr Rule 9 Contract Analyst $ 85,874 10% $ 94,461 $ 91,689 10% $ 100,858 Sr Safety Compliance Adv-Gen $ 94,861 10% $ 104,347 $ 98,972 10% $ 108,869 Sr Safety Compliance Adviser $ 86,215 10% $ 94,837 $ 98,972 10% $ 108,869 Sr Safety Compliance Adviser $ 91,123 10% $ 100,235 $ 99,828 10% $ 109,811 Sr Tax Analyst $ 87,763 10% $ 96,539 $ 73,688 10% $ 81,057 Sr Technical Writer - Gen $ 116,808 10% $ 128,489 $ 112,837 12% $ 126,377 Sr Trans Billing Analyst $ 87,765 10% $ 96,541 $ 87,001 10% $ 95,701 Sr Treasury Anlst - Fincl Anls $ 87,248 10% $ 95,973 $ 90,350 10% $ 99,385 Sr Vegetation Mgmt Admin $ 98,728 10% $ 108,601 $ 114,064 14% $ 130,033 Storage Analyst III $ 100,299 10% $ 110,328 $ 124,573 0% $ 124,573 Substation Support Lead $ 110,073 10% $ 121,080 $ 122,046 15% $ 140,353 Supv, Billing & Credit Ops $ 100,589 13% $ 113,163 $ 93,244 10% $ 102,261 Supv, Customer Contact $ 81,833 13% $ 92,062 $ 84,294 9% $ 91,880 Supv, Customer Contact $ 81,882 13% $ 92,117 $ 81,215 10% $ 89,337 Supv, Database Admin $ 134,478 13% $ 151,288 $ 147,880 15% $ 170,062 Supv, Demand Response Ops&Eng $ 109,388 13% $ 123,062 $ 106,203 11% $ 118,236 Supv, Electric Coord & Insp $ 130,672 15% $ 150,273 $ 109,655 10% $ 120,621

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 8 of 9 Page 47 of 247 Exhibit Holder-Direct-3B

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Total Market Bonus/ Median Total Job Title Annual Rate Incentive Cash Median Incentive Cash Supv, Env Svcs $ 117,604 13% $ 132,304 $ 123,477 15% $ 141,999 Supv, Fleet Maintenance $ 104,580 13% $ 117,653 $ 114,841 13% $ 129,196 Supv, GIS & Mapping $ 90,487 13% $ 101,798 $ 99,696 10% $ 109,666 Supv, IT Service Desk Support $ 111,334 13% $ 125,251 $ 99,475 10% $ 109,423 Supv, Plant $ 120,452 15% $ 138,520 $ 111,075 11% $ 123,293 Supv, Safety & Health $ 107,578 13% $ 121,025 $ 122,020 10% $ 134,222 Supv, Safety & Health $ 108,264 13% $ 121,797 $ 122,020 10% $ 134,222 Supv, Support Services $ 86,781 13% $ 97,629 $ 85,528 10% $ 94,081 Supv, Telecom Engr $ 107,205 15% $ 123,286 $ 117,497 12% $ 131,597 Supv, Vegetation Mgmt $ 106,757 13% $ 120,102 $ 101,734 10% $ 111,907 Supv, Warehouse Operations $ 98,754 13% $ 111,098 $ 92,369 10% $ 101,606 Sys Analyst II $ 88,575 6% $ 93,890 $ 81,356 9% $ 88,678 Sys Analyst III $ 100,087 10% $ 110,096 $ 101,822 10% $ 112,004 Sys Analyst IV $ 112,014 10% $ 123,215 $ 120,215 10% $ 132,237 Tax Analyst $ 83,104 6% $ 88,090 $ 56,932 10% $ 62,625 Technical Tax Analyst $ 95,536 10% $ 105,089 $ 93,381 10% $ 102,719 Technical Tax Spec - Property $ 115,145 10% $ 126,660 $ 111,932 15% $ 128,722 Telecom Engr II $ 93,595 6% $ 99,211 $ 90,630 10% $ 99,693 Telecom Voice Systems Eng IV $ 115,005 10% $ 126,506 $ 121,149 15% $ 139,321 Telecommunications Eng III $ 101,904 10% $ 112,094 $ 104,747 13% $ 118,364 Telecommunications Eng IV $ 121,323 10% $ 133,456 $ 121,149 15% $ 139,321 Telecommunications Engineer I $ 74,776 6% $ 79,263 $ 71,008 8% $ 76,689 Trainer - System Operations $ 109,890 10% $ 120,879 $ 124,804 15% $ 143,525 Treasury Anlst I - Cash Mgmt $ 70,584 6% $ 74,819 $ 59,870 9% $ 65,258 Treasury Services Manager $ 128,856 15% $ 148,184 $ 132,068 15% $ 151,878 Turbine Maintenance Manager $ 141,298 15% $ 162,493 $ 153,077 0% $ 153,077 Vegetation Mgmt Admin $ 81,443 10% $ 89,587 $ 76,052 10% $ 83,277 Averages $ 105,921 11% $ 119,279.97 $ 108,206 12% $ 122,427

Below Market Median Annual Rate: 2.1% ow Calculated Market Median Total Cash: 2.6%

1) Data as of December 31, 2019 2)Data aged to December 31, 2019 Page 9 of 9 Page 48 of 247 EXHIBIT HOLDER-DIRECT-3C

Page 49 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Aon High Demand IT Compensation & Practices, 2018 Abercrombie & Fitch Co. Adventist Health System AIPSO Allegis Group, Inc. Alliant Credit Union Ally Financial, Inc. Ameren Corporation American Family Mutual Insurance Co., Inc. AmerisourceBergen Atmos Energy Corporation AT&T Aurora Health Care, Inc. Autozone Inc. Availity, L.L.C. Aviall BAE Systems Battelle Energy Alliance LLC Blackboard Blue Cross and Blue Shield of Florida, Inc. Blue Cross & Blue Shield of North Carolina BNSF Railway Company Board of Governors of the Federal Reserve System Briggs & Stratton Corporation Brown Forman Caesars Acquisition Company CareFirst of Maryland Cargill Incorporated CDW CenterPoint Energy, Inc. Chewy, Inc. Choice Hotels International, Inc. Chubb Group Citizens Financial Group, Inc. City Public Service of San Antonio Clean Harbors CoBham plc Cognosante Colonial Pipeline Company Comcast Corporation Cornell University Cox Enterprises, Inc. Darden Restaurants, Inc. Dart Container Corporation Deere & Company Deloitte & Touche L.L.P.

Page 1 of 26 Page 50 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Deluxe Corporation Dick's Sporting Goods, Inc. Discover Financial Services Domino's Pizza, Inc. DSW, Inc. EAB Edward D. Jones & Co., L.P Emory University Empowered Benefits, LLC Energy Transfer Partners Ernst & Young Farm Credit Bank of Texas Federal Reserve Bank of Dallas Federal Reserve Bank of Minneapolis Federal Reserve Information Technology Fermi National Laboratory Fifth Third Bancorp First Data Corporation Fiserv, Inc. General Mills, Inc. Genuine Parts Company Graco, Inc. Hanesbrands, Inc. HD Supply Helmerich & Payne, Inc. Hilton Grand Vacations Company LLC Hyatt Hotels Corporation IDEXX Ilitch Holdings, Inc. Jackson National Life Insurance JEA JetBlue Airways J. J. Keller & Associates, Inc. JM Family Kellogg Company Kforce Inc. Laureate Education, Inc. Littelfuse, Inc. Mapfre U.S.A. Corp. Mazda Motor Corporation Methode Electronics MIT Lincoln Laboratory Molex Incorporated National Futures Association National Renewable Energy Lab Navy Federal Credit Union

Page 2 of 26 Page 51 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant NCI, Inc. Nestle Purina PetCare Company Northern Arizona University NRG Energy, Inc. Nustar Energy L.P NV Energy, Inc. One America Financial Partners, Inc. Onemain Financial PACCAR Inc. Parsons Corporation Petco Animal Supplies, Inc. Pilot Flying J, Inc. Public Broadcasting Service Quintiles Reinsurance Group of America, Incorporated Retail Business Services Ricoh Americas Corporation Robert Half International Ropes & Gray LLP RSM US LLP Sentry Insurance State Farm Mutual Automobile Insurance Company Stericycle, Inc. TDS Telecommunications Texas Children's Hospital Texas Health Resources The Allstate Corporation The Capital Group, Inc. The Dow Chemical Company The Progressive Corporation The University Of Texas M D Anderson Cancer Center Thomas Jefferson National Accelerator Facility TJX Companies, Inc. T-Mobile Tractor Supply Company Trinity Health Corporation United Air Lines United States Steel Corp. Universal Studios U.S. Cellular Valero Energy Corporation Voya Financial Washington Gas Light Company Wawa, Inc. Weil, Gotshal & Manges LLP Western & Southern Financial Group, Inc.

Page 3 of 26 Page 52 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Wolters Kluwer U.S. W.W. Grainger, Inc. Yum! Brands, Inc. Zurich American Insurance Aon IEHRA Energy Industry, 2018 ALLETE, Inc. Alliant Energy Corporation Alyeska Pipeline Service Company Ameren Corporation American Electric Power Company, Inc. Arizona Public Service Company Arkansas Electric Cooperatives Corporation Associated Electric Cooperative Inc. Atlantic Power Services LLC Avangrid Renewables Avant Energy, Inc. Berkshire Hathaway Energy Company Buckeye Partners, L.P. Calpine Corporation Capital Power Corporation CenterPoint Energy, Inc. Chevron Global Power Company City Utilities of Springfield, MO Cleco Corporation CMS Energy Corporation Colorado Springs Utilities Consolidated Edison, Inc. Covanta Energy CPS Energy Dairyland Power Cooperative Diamond Generating Corporation Direct Energy Services Inc. Dominion Energy, Inc. DTE Energy Company Duke Energy Corporation EDF Renewables EDF Trading Limited Edison International EDP Renewables North America LLC Emera Energy Inc. Energy Transfer Partners, L.P. Entrust Energy, Inc. EthosEnergy Group Exelon Corporation Ferrellgas Partners, L.P. FirstEnergy Corp.

Page 4 of 26 Page 53 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant First Solar, Inc. Gas South, LLC Great River Energy Greystone Power Corporation Heorot Power Management LLC IHI Power Services Corporation JEA Kamo Electric Cooperative, Inc. Midwest AgEnergy Group LLC Nebraska Public Power District New Jersey Resources Corp New York Power Authority NextEra Energy Resources, LLC NiSource Inc. North American Energy Services Corporation NRG Energy, Inc. Nustar Energy L.P. OCI Solar Power OGE Energy Corp. Oglethorpe Power Corporation Old Dominion Electric Cooperative Ormat Technologies, Inc. Pedernales Electric Cooperative, Inc. PG&E Corporation PJM Interconnection LLC Portland General Electric Company Power Plant Management Services LLC Prairie State Generating Company, LLC Public Utility District 1 of Chelan County Sacramento Municipal Utility District SCANA Corporation Seminole Electric Cooperative, Inc. Sempra Energy Southern Company Southwest Gas Corporation Southwest Generation Operating Company, LLC Spire Energy Suncoke Energy, Inc. Tenaska, Inc. Tennessee Valley Authority Vistra Energy WEC Energy Group, Inc. Xcel Energy, Inc. Aon Renewable Energy, 2018 Acciona Energy USA Global LLC ALLETE, Inc.

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Survey Report Title Survey Participant Alliant Energy Avangrid, Inc. BayWa r.e. Solar Projects, LLC BP p.l.c. City Utilities of Springfield, MO Con Edison Competitive Covanta Energy Dairyland Power Cooperative Duke Energy Corporation EDF Renewable Energy EDP Renewables North America LLC Enel Green Power North America, Inc. Energy Businesses Ethos Energy Group Exelon Corporation First Solar GDF Suez North America MidAmerican Energy Holdings (Berkshire Hathaway Energy) NAES Corporation (North American Energy Services) Nebraska Public Power District NextEra Energy Resources, LLC Ormat Technologies Inc. Portland General Electric Company Seminole Electric Cooperative, Inc. Sempra Energy Sunrun Inc Tenaska, Inc. The Southern Company Tradewind energy Inc. Underwriters Laboratories Vestas America Vivint Solar, Inc. Aon TCM Broad-Based Mgmt Total Comp by Industry, 2018 3M Company 7-Eleven, Inc. Abbott Laboratories Academy Sports & Outdoors, Ltd. ACCO Brands Corporation Acushnet Company ADT Corp Aegion Corp. A&E Television Networks Aetna Inc. Aflac Incorporated AGCO Corporation Air Methods Corporation

Page 6 of 26 Page 55 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Albertsons Inc. Alight Solutions Allegion S&S US Holding Company Inc Allegis Group Allete, Inc. Alliant Energy Corporation Allianz Life Insurance Company of North America Ally Financial Inc. Altria Group, Inc. Ameren Corporation American Airlines American Axle & Manufacturing Holdings, Inc. American Electric Power Company, Inc. American Express Company American Family Mutual Insurance Co Inc American Greetings Corporation American Hotel Register Company American International Group, Inc. Analog Devices, Inc. Andeavor Aon Corporation Aptim Aptiv Arby's Restaurant Group, Inc. Arch Coal, Inc. Argo Group Us, Inc. Arkansas Blue Cross & Blue Shield, A Mutual Insurance Company Arkema Inc. Armstrong World Industries, Inc. Asbury Automotive Group, Inc. AT&T Inc. Auria Solutions USA Inc. Avangrid, Inc. Avanos BAE Systems, Inc. Bain & Company, Inc. Ball Corporation Ballentine Partners Barnes Group Inc. Barry-Wehmiller Companies, Inc. Battelle Memorial Institute Inc Baxter Credit Union BB&T Corporation Beachbody Beam Suntory Inc. Belden Inc.

Page 7 of 26 Page 56 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Belk, Inc. Berkshire Hathaway Energy Company BJ's Restaurants, Inc. Bloomin Brands Blue Cross Blue Shield Association Blue Diamond Growers BMW of North America BNSF Railway Company Boddie Noell Enterprises Inc Borg Warner Breakthru Beverage Group Briggs & Stratton Corporation Brighthouse Financial Brown-Forman Corporation Brunswick Corporation Buckeye Partners, L.P. Builders FirstSource, Inc. Bush Brothers & Company Caesars Entertainment, Inc Ca, Inc. Cajun operating Company Calgon Carbon Corporation Calpine Corporation Campbell Soup Company Capital Power Corporation Cardinal Health, Inc. Cardtronics, Inc. Career Education Corporation Cargill, Incorporated Carter's, Inc. Case New Holland Caterpillar Inc. CDK Global, Inc. CenterPoint Energy, Inc. Century Aluminum Company CF Industries Holdings, Inc. Checkers Drive-In Restaurants, Inc. Cheniere Energy, Inc. Chewy, Inc. Chico's FAS, Inc. Children's Medical Center of Dallas Cincinnati Financial Corporation City & County Of Denver City Utilities of Springfield Clearwater Paper Corporation Cleco Corporation

Page 8 of 26 Page 57 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant CNA Financial Corporation Coca-Cola Bottling Co. Consolidated Coca-Cola Refreshments Colfax Corporation Colgate-Palmolive Company Colorado Energy Management Colorado Springs Utilities Colson Associates, Inc. Comcast Corporation ConAgra Foods, Inc. Consolidated Edison Cooper-Standard Holdings Inc. CoreLogic, Inc. Coriant Coty Inc. Covance Covanta Energy Cox Enterprises, Inc. Credit Acceptance Corporation Curtiss-Wright Corporation CVS Health Danaher Corporation Darden Restaurants, Inc. Dart Container Corporation Deere & Company Deloitte & Touche L.L.P. Deluxe Corporation Denny's Corporation Denso International America, Inc. Diageo North America, Inc. Diamond Generating Corporation Dick's Sporting Goods, Inc. Dine Brands Direct Energy Services Inc Discover Financial Services Dole Food Company, Inc. Dominion Energy, Inc. Domino's Pizza, Inc. Donaldson Company, Inc. Donatos Pizzeria Corp. Drew Marine USA Inc Duke Energy Corporation Dunkin' Brands, Inc. Duracell International Inc. EAB Eaton Corporation

Page 9 of 26 Page 58 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Ecolab Inc. EDF Renewable Energy EDP Renewables E. & J. Gallo Winery Elkay Manufacturing Company Inc Elo Touch Solutions, Inc. Emerson Electric Co. Encore Capital Group, Inc. Erie Indemnity Company Essendant Inc. Essex Property Trust, Inc. Essilor of America, Inc. Ethos Energy Group Evraz Inc. NA Exide Technologies Express Express Scripts, Inc. Fairfax County Public Schools Federal Home Loan Bank of Atlanta Federal Home Loan Mortgage Corporation Federal Reserve Bank of Cleveland Federal Reserve Bank of Dallas Federal Reserve Bank of Kansas City Federal Reserve Bank of Minneapolis Federal Reserve Information Technology FedEx Corporation FedEx Services Fermi National Laboratory Ferrara Candy Company First Data Corporation FirstEnergy Corp. First Solar, Inc. Fitbit Flowserve Corporation Focus Brands Ford Motor Company Foresters Fortune Brands Home & Security Fossil, Inc. Franklin Electric Co., Inc. Freeport-McMoRan Inc. Fresenius Medical Care Frost & Sullivan GAF Gardner Denver, Inc. GATX Corporation

Page 10 of 26 Page 59 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Gemological Institute of America General Dynamics Corporation General Dynamics Land Systems General Mills, Inc. General Motors Company Genuine Parts Company Genworth Financial, Inc. Gilbane Inc. Gilead Sciences Glanbia Performance Nutrition, Inc. GNC Corporation Gordon Food Service Gorton's Inc. Graphic Packaging Holding Company Great River Energy Greystone Power Corporation Gypsum Management and Supply, Inc. Hallmark Cards, Inc. Hanesbrands Inc. Harley-Davidson Motor Company, Inc. Harris Corporation Haworth, Inc. H.B. Fuller Company HCC Insurance Holdings, Inc. HD Supply H. E. Butt Grocery Company Helen of Troy Limited Helzberg Diamonds Hendrickson USA, LLC Herbalife International Herman Miller, Inc. Hi-Crush Partners LP Hilti Of America Inc Hilton Grand Vacations Company, LLC Hilton Worldwide, Inc. HMSHost HNTB Corporation Hollister Incorporated Hollyfrontier Corporation Holman Enterprises, Inc. Honda North America, Inc Hormel Foods Corporation Houghton Mifflin Company H&R Block Hubbell Incorporated Hudson Advisors

Page 11 of 26 Page 60 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Humana Inc. Huron Consulting Group Inc. Hyatt Hotels Corporation ICF International, Inc. Ideal Industries, Inc. IKEA North America Services, LLC Illinois Tool Works Inc. Information Resources, Inc. Ingersoll-Rand Company Ingevity Corporation Ingredion Incorporated International Automotive Components Group North America, Inc. International Dairy Queen, Inc. International Paper Company Iron Mountain Incorporated ITG Brands, LLC Itochu International Inc. ITU AbsorbTech, Inc Jack in the Box Inc. James Hardie Industries SE JBS USA Holdings, Inc. JEA Johns Manville Corporation Johnson Controls International Johnson & Johnson Johnson Outdoors Inc. John Wiley & Sons, Inc. J. Paul Getty Trust J. R. Simplot Company Kaman Corporation Kamo Electric Cooperative Inc. Kellogg Company Kenco Group Keystone Foods LLC Kforce Inc. Kimberly-Clark Corporation Kinder Morgan Inc Kings Hawaiian Bakery Kinross Gold U.S.A., Inc. Knowles Corporation Kohler Co. Komatsu Mining Corporation L-3 Communications Holdings, Inc. Lamb Weston Legal & General America, Inc. Liberty Tire Recycling

Page 12 of 26 Page 61 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Little Rapids Corporation L.L. Bean, Inc. Lockheed Martin Corporation LPL Financial Corporation Lsg Sky Chefs Usa, Inc. Luxottica Retail Lydall, Inc. Magna International Inc. Magnolia Realty Inc. ManpowerGroup Marriott International, Inc. Marriott Vacation Worldwide Mars Incorporated Martin Marietta Materials, Inc. Masco Corporation Maximus Inc. Mazda Motor Corporation McDonald's Corporation McLane Company, Inc. Mercedes-Benz Financial Services USA LLC Mercedes Benz USA LLC Mercury Insurance Meritor, Inc. Merrill Corporation Micron Technology Mid-America Apartment Communities, Inc. Midwest AgEnergy Group Mitsui & Co. (u.s.a.) Inc. Mohawk Industries, Inc. Momentive Specialty Chemicals Inc. Mondelez International, Inc. Mortgage Guaranty Insurance Corporation Motorsport Aftermarket Group MRC Global Inc. Mr. Cooper Mueller Water Products, Inc. Navy Federal Credit Union NCI Building Systems, Inc. NCR Corporation Nestle Purina Petcare Company Nestle USA, Inc. Netapp, Inc. New Jersey Manufacturers Insurance Company New York Power Authority New York University Nextera Energy Resources, LLC

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Survey Report Title Survey Participant Nintendo of America, Inc. Nippon Express U.S.A., Inc. NiSource Inc. Nordstrom, Inc. Northern Trust Corporation Northshore University Healthsystem Novartis Pharmaceuticals Corporation NRG Energy, Inc. NSK Corporation NuStar Energy LP NV Energy, Inc. nVent Oak Ridge Associated Universities Inc. Olympus America Inc. ONEOK, Inc. Oriental Trading Company Owens-Illinois, Inc. Pacific Bells, Inc. Pacific Life Insurance Company Packaging Corporation of America Panasonic Corp of North America Panduit Corp. Papa John's International, Inc. Parker-Hannifin Corporation Patagonia Paychex, Inc. Pedernales Electric Cooperative, Inc. Penske Corporation Pentair, Inc. People's United Financial, Inc. PepsiCo, Inc. Performance Food Group Company Pernod Ricard Usa, LLC Perrigo Company Petco Animal Supplies, Inc. PetSmart, Inc. P.F. Chang's China Bistro,Inc. PG&E Corporation Pjm Interconnection, LLC PolyOne Corporation Prairie State Generating Company, LLC Praxair, Inc. Pricewaterhousecoopers LLP Prologis, Inc. Public Company Accounting Oversight Board Publix Super Markets, Inc.

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Survey Report Title Survey Participant PVH Corp. Qorvo Quad-Graphics, Inc. Qualcomm Inc. Quest Diagnostics Incorporated Radisson Hotels International Raising Cane's Resturants Randstad North America L.P. Raytheon Company RECARO Aircraft Seating Americas, Inc. Redbox Regal Beloit Corporation Republic Services, Inc. Reynolds American Inc. Rich Products Corporation Ricoh Americas Corporation Risk Administration Service Ritchie Bros. Auctioneers Incorporated Robert Bosch LLC Robert Half International Inc. Ryder System, Inc. Sacramento Municipal Utility District Sally Beauty Holdings, Inc. Sargento Foods Inc. SCANA Corporation S & C Electric Company Scholle Corporation Schreiber Foods, Inc. S. C. Johnson & Son, Inc. Seminole Electric Cooperative, Inc. Sempra Energy Sharecare ShopKo Stores, Inc. Siemens Corporation Simpson Manufacturing Co., Inc. Sodexo, Inc. Sonic Corp. Sonoco Products Company Sotera Health Southeastern Freight Lines, Inc. Southern Methodist University Inc Southwest Generation Operating Company LLC Spartan Light Metal Products, Inc. SpartanNash Company Spire Inc Stage Stores, Inc.

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Survey Report Title Survey Participant Standard Motor Products, Inc. Staples, Inc. St. Jude Children's Research Hospital, Inc. Stryker Corporation Subway Restaurants, Inc Summit Polymers, Inc. SuperValu Inc. Sutter Home Winery, Inc. Taco John's International, Inc. Target Corporation TDS Telecommunications Corporation Tecumseh Products Company Tellurian Inc Tenaska Energy Inc. Tennant Company Tennessee Valley Authority Terex Corporation Texas Children's Hospital Textron Inc. The Allstate Corporation The Bama Companies, Inc The Chamberlain Group, Inc The Chemours Company The Clorox Company The Coca-Cola Company The Dow Chemical Company The Estee Lauder Companies Inc The Goodyear Tire & Rubber Company The Guardian Life Insurance Company of America The Hartford Financial Services Group Inc The Hershey Company The Marcus Corporation The New York Times Company The Privatebank and Trust Company The Progressive Corporation The Scotts Miracle-Gro Company The ServiceMaster Company LLC The Sherwin-Williams Company The Timken Company The TJX Companies Inc Thirty-One Gifts LLC Tivity Health TMEIC Corporation Toms Shoes Inc. Topbuild Corp Tory Burch LLC

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Survey Report Title Survey Participant Toyota Boshoku TPI Composites Transamerica TransUnion LLC TreeHouse Foods, Inc Trinity Industries, Inc. True Value Company TS Tech Americas, Inc. TTX Company Tuesday Morning Corporation Tyson Foods, Inc. Uline, Inc. Unilever United States Inc. United Continental Holdings, Inc. UnitedHealth Group Incorporated United Parcel Service United States Cellular Corporation United Technologies Corporation Universal Health Services, Inc. Universal Studios Orlando Restaurants U.S. Bancorp US Foods, Inc. Vail Resorts, Inc. Valero Energy Corporation Valmont Industries, Inc. Venator Veritiv Corporation Verizon Communications Inc. Verso corporation VetSource V.F. Corporation Viad Corp Visa Inc. Vision Service Plan Vista Outdoor Inc. Vistra Energy Vitamix Corporation Walgreens Boots Alliance, Inc. Waste Management, Inc. Weathernews Inc. Wegmans Food Markets, Inc. WellCare Health Plans, Inc Wells Enterprises, Inc. WestRock Company WEX Inc. Whirlpool Corporation

Page 17 of 26 Page 66 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant White Castle System, Inc. Whole Foods Market, Inc. Williams-Sonoma, Inc. Wolters Kluwer U.S. Woodward Inc. World Bank Xcel Energy Inc. Xerox Corporation Yazaki North America, Inc. YUM Brands, Inc. Zappos ZF Friedrichshafen AG Energy Technical Craft Clerical, 2018 AES US Services, LLC Ameren Corporation American Electric Power Arizona Public Service/Pinnacle West Avista Utilities CenterPoint Energy Cleco Corporate Holdings, LLC Colorado Springs Utilities Consumers Energy Dominion DTE Energy Company Duke Energy Corporation East Kentucky Power Cooperative ElectriCities of North Carolina, Inc Energy Northwest Entergy Corp. Eversource Energy Exelon Corp. FirstEnergy Corp. Idaho Power Company JEA Kansas City Power and Light Lower Colorado River Authority MidAmerican Energy Company Montana-Dakota Utilities Co Nebraska Public Power District Newmont Mining Corporation New York Power Authority NextEra Energy, Inc. NorthWestern Energy NRG Energy, Inc. Omaha Public Power District Oncor Electric Delivery

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Survey Report Title Survey Participant Otter Tail Power Company Pacific Gas & Electric Company Platte River Power Authority PPL Corporation Puget Sound Energy San Diego Gas and Electric Santee Cooper SCANA Corporation Southern California Edison Southern California Gas Co. Southern Company - Ga. Power Southern Company - MS Power Southern Company- Nuc. Operating Tampa Electric Tucson Electric Power Company We Energies Westar Energy, Inc Wolf Creek Nuclear Operating Corp. Xcel Energy WTW American Gas Association, 2019 Atmos Energy Corporation Avista Corporation Berkshire Hathaway Energy Black Hills Corporation CenterPoint Energy Chesapeake Utilities Corporation Citizens Energy Group City of Gainesville Colorado Springs Utilities CPS Energy Dominion Energy Southeast Energy Group Enstar Natural Gas Company Equitrans Midstream Corporation Eversource Energy Greenville Utilities Hawaii Gas Knoxville Utilities Board LG&E and KU Energy Memphis Light, Gas & Water Metropolitan Utilities District Montana-Dakota Utilities Company Mountaineer Gas Company National Fuel Gas Company National Gas & Oil Cooperative New Jersey Resources

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Survey Report Title Survey Participant NiSource NorthWestern Energy NW Natural ONE Gas Peoples Natural Gas Philadelphia Gas Works Puget Sound Energy San Diego Gas & Electric Company SEMCO Energy Southern Company Gas Southern Star Central Gas Pipeline South Jersey Industries Southwest Gas Corporation Spire TC Energy (TECO Energy ) Washington Gas Xcel Energy WTW Energy Services Executive, 2019 AES Corporation ALLETE Alliant Energy Ameren American Electric Power Aqua America Atmos Energy AVANGRID Avista Baker Hughes, a GE company Berkshire Hathaway Energy Black Hills Boardwalk Pipeline Partners BWX Technologies California Independent System Calpine Canadian Solar CenterPoint Energy Cheniere Energy Chesapeake Utilities Citizens Energy Group CLEAResult Cleco CMS Energy Colorado Springs Utilities Consolidated Edison Cooperative Core Laboratories

Page 20 of 26 Page 69 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant CPS Energy Dairyland Power Cooperative DCP Midstream Dominion Energy Dominion Energy Southeast Energy DTE Energy Duke Energy Duquesne Light EDF Renewable Energy Edison International El Paso Electric Enable Midstream Partners Energy Northwest Energy Transfer Partners ENGIE Energy North America ENI US Operating Company EnLink Midstream Entergy E.ON - Climate and Renewables EQT Corporation ERCOT Evergy Eversource Energy Exelon FirstEnergy First Solar Framatome Genesis Energy GE Power GE Renewable Energy Great River Energy Group Hawaiian Electric Industries Helmerich & Payne ICF International Idaho Power Institute of Nuclear Power Operations ISO New England ITC Holdings JEA Kinder Morgan Knoxville Utilities Board LG&E and KU Energy Lower Colorado River Authority Midwest Independent Transmission Monroe Energy

Page 21 of 26 Page 70 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Montana-Dakota Utilities MRC Global Inc National Grid USA Nebraska Public Power District New Jersey Resources NextEra Energy Inc. NiSource NorthWestern Energy NOVA Chemicals NuStar Energy NW Natural OGE ENnergy Oglethorpe Power Old Dominion Electric Omaha Public Power Oncor Electric Delivery ONE Gas ONEOK Operator Orano Orlando Utilities Commission Otter Tail Pacific Gas & Electric Pedernales Electric Cooperative Pinnacle West Capital PJM Interconnection PNM Resources Portland General Electric PPL Precision Drilling Public Service Enterprise Group Puget Sound Energy Salt River Project Santee Cooper SEMCO Energy Sempra Energy Silicon Ranch Corporation Southern Company Services Southern Maryland Electric South Jersey Industries Southwest Gas Spire STP Nuclear Operating System Operator TC Energy TECO Energy

Page 22 of 26 Page 71 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Tennessee Valley Authority UGI Unitil UNS Energy URENCO Vistra Energy WEC Energy Group Williams Companies Xcel Energy WTW Energy Services Mid-Mgmt, Prof & Support, 2019 AES Corporation Algonquin Power & Utilities ALLETE Alliant Energy Alyeska Pipeline Service Ameren American Electric Power Aqua America Associated Electric Cooperative ATC Management Atmos Energy AVANGRID Avista Berkshire Hathaway Energy Black Hills Blattner Energy Boardwalk Pipeline Partners BWX Technologies California Independent System Operator Calpine Canadian Solar Capital Power CenterPoint Energy Centrica Chelan County Public Utility District Cheniere Energy Chesapeake Utilities CLEAResult Cleco CMS Energy Colorado Springs Utilities Consolidated Edison Core Laboratories CPS Energy Dairyland Power Cooperative DCP Midstream

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Survey Report Title Survey Participant Delek US Holdings DNV GL Dominion Energy Dominion Energy Southeast Energy Group DTE Energy Duke Energy Duquesne Light EDF Renewable Energy EDF Trading Edison International Electric Boat Corporation ElectriCities of North Carolina El Paso Electric Enable Midstream Partners Enbridge Energy Northwest Energy Transfer Partners ENGIE Energy North America ENI US Operating Company EnLink Midstream Entergy E.ON - Climate and Renewables EPCOR Utilities EQT Corporation ERCOT Evergy Eversource Energy Exelon Fieldcore FirstEnergy First Solar Fluor Marine Propulsion Framatome GE Power GE Renewable Energy Gibson Energy Great River Energy Hawaiian Electric Industries Helmerich & Payne ICF International Idaho Power Institute of Nuclear Power Operations ISO New England ITC Holdings JEA Kinder Morgan

Page 24 of 26 Page 73 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Knoxville Utilities Board LG&E and KU Energy Lightsource BP Lower Colorado River Authority MDU Resources MGE Energy Midwest Independent Transmission System Operator Monroe Energy NAES National Fuel Gas National Grid USA Nebraska Public Power District NextEra Energy Inc. NiSource North America NorthWestern Energy NOVA Chemicals Nuscale Power NuStar Energy NW Natural Oak Ridge National Laboratory OGE Energy Oglethorpe Power Old Dominion Electric Omaha Public Power Oncor Electric Delivery ONE Gas ONEOK Orano Orlando Utilities Commission Pacific Gas & Electric Pedernales Electric Cooperative Pembina Pipeline PetroChina International (America) Pinnacle West Capital PJM Interconnection Platte River Power Authority PNM Resources Portland General Electric PPL Precision Drilling Public Service Enterprise Group Puget Sound Energy Salt River Project Santee Cooper Sempra Energy

Page 25 of 26 Page 74 of 247 Exhibit Holder-Direct-3C

Survey Report Title Survey Participant Southern Company Services Southern Maryland Electric Cooperative South Jersey Industries Southwest Gas Spire STP Nuclear Operating Talen Energy Targa Resources TC Energy T.D. Williamson TECO Energy Tennessee Valley Authority Transocean Tri-State Generation & Transmission Unitil UNS Energy URENCO Veolia Environmental Services Washington Gas Williams Companies Xcel Energy

Page 26 of 26 Page 75 of 247 EXHIBIT HOLDER-DIRECT-4A

Page 76 of 247 Exhibit Holder-Direct-4A

NV Energy Data(1) Benchmark Data (2)

Average Market Calculated Target Average Target Market Average Bonus/ Calculated Market Bonus/ Median Total Title Annual Rate Incentive Total Cash Median Incentive Cash President & CEO $ 360,000 100% $ 720,000 $ 453,555 70% $ 771,044 Exec VP Bus Dvlpmt & Ext Relat $ 384,721 55% $ 596,318 $ 300,536 35% $ 405,724 SVP, HR & Corporate Services $ 231,422 45% $ 335,562 $ 257,286 38% $ 353,768 SVP, Operations $ 307,797 55% $ 477,085 $ 336,193 50% $ 504,290 SVP, Renewable & Origination $ 271,144 40% $ 379,602 $ 256,933 40% $ 359,706 VP & Chief Financial Officer $ 233,618 50% $ 350,427 $ 305,630 45% $ 443,164 VP, Generation $ 229,332 35% $ 309,598 $ 310,724 45% $ 450,550 VP, Bus Devl & Cmty Relations $ 263,312 40% $ 368,637 $ 246,945 40% $ 345,723 VP, Customer Operations $ 223,456 35% $ 301,666 $ 248,477 40% $ 347,868 VP, Env Srvc, Safety&Land Mgmt $ 252,330 35% $ 340,646 $ 251,655 40% $ 352,317 VP, G Counsel, Corp Sec, CCO $ 236,967 40% $ 331,754 $ 297,714 45% $ 431,685 VP, Gas Delivery $ 195,361 30% $ 253,969 $ 185,116 40% $ 259,162 VP, Governmen & Cmty Relations $ 237,765 35% $ 320,983 $ 260,047 40% $ 364,066 VP, Information Technology $ 200,878 30% $ 261,141 $ 277,614 40% $ 388,660 VP, Optimization & Innovation $ 211,422 30% $ 274,849 $ 241,031 34% $ 322,982 VP, Regulatory $ 201,728 30% $ 262,246 $ 270,628 40% $ 378,879 VP, Resource Optimization $ 217,798 30% $ 283,137 $ 277,897 40% $ 389,056 VP, Transmission $ 216,115 30% $ 280,950 $ 323,255 40% $ 452,557 Averages $ 242,069 38% $ 336,975 $ 273,393 41% $ 385,303

Below Market Median Annual Rate: 11% Below Calculated Market Median Total Cash: 13%

1) Data as of Decemver 31, 2019 2) Data aged to December 31, 2019 Page 77 of 247 EXHIBIT HOLDER-DIRECT-4B

Page 78 of 247 Exhibit Holder-Direct-4B

Delta between December December December December 2016 and 2016 2017 2018 2019 2019 President/CEO Employee Count 1 1 2 1 Base Salary $ 461,000 $ 469,000 $ 832,000 $ 360,000 Total Cash Compensation** $ 886,000 $ 1,162,000 $ 1,877,750 $ 810,000 Avg Total Cash Compensation per Position: $ 886,000 $ 1,162,000 $ 938,875 $ 810,000 -8.6%

Sr VP Employee Count 7 8 6 4 Base Salary $1,865,574 $2,162,051 $1,695,816 $1,195,084 Total Cash Compensation** $2,742,534 $3,145,281 $2,515,644 $1,663,774 Avg Total Cash Compensation per Position: $391,790.57 $393,160.13 $419,274.00 $415,943.50 6.2%

VP Employee Count 12 14 14 13 Base Salary $2,653,750 $2,894,417 $2,977,812 $2,920,082 Total Cash Compensation** $3,442,399 $3,591,162 $3,785,401 $3,723,935 Avg Total Cash Compensation per Position: $286,866.58 $256,511.57 $270,385.79 $286,456.54 -0.1% Total Employee Count: 20 23 22 18 Total Base Salary: $4,980,324 $5,525,468 $5,505,628 $4,475,166 Total Cash Compensation: $7,070,933 $7,898,443 $8,178,795 $6,197,709 Avg Total Cash Compenstion per Position: $353,546.65 $343,410.57 $371,763.41 $344,317.17 -2.6%

Page 79 of 247 Page 80 of 247 DANIELLE LEWIS

Page 81 of 247

1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

2 Nevada Power Company d/b/a NV Energy Docket No. 20-06___ 3 2020 General Rate Case

4 Prepared Direct Testimony of

5 Danielle Lewis

6 Revenue Requirement 7

8 1. Q. PLEASE STATE YOUR NAME, OCCUPATION, AND BUSINESS

9 ADDRESS.

10 A. My name is Danielle Lewis. I am a Finance Project Manager for Sierra Pacific

11 Power Company d/b/a NV Energy (“Sierra” ) and Nevada Power Company 12 d/b/a NV Energy (“Nevada Power” or the “Company” and, together with 13 Sierra, the “Companies”). I work primarily out of Sierra’s offices at 6100 Neil Power Company Company Power

d/b/a NV Energy 14 Road in Reno, Nevada. I am filing testimony on behalf of Nevada Power.

Nevada Nevada 15 and Sierra Pacific Power Company Pacific Power Sierra and Company 16 2. Q. PLEASE SUMMARIZE YOUR EDUCATION AND PROFESSIONAL 17 EXPERIENCE. 18 A. I have been employed by the Companies for 5 years. A complete statement of 19 my qualifications is set forth as Exhibit Lewis-Direct-1, attached to my 20 testimony.

21 22 3. Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE THE PUBLIC 23 UTILITIES COMMISSION OF NEVADA (“COMMISSION”)? 24 A. Yes. I filed prepared direct testimony in support of Sierra’s 2019 General Rate 25 Case, Docket No. 19-06002.

26 27

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1 4. Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY? 2 A. The purpose of my testimony is to sponsor Schedule H-CERT-17: Payroll, 3 Benefits and Pension Expense for the Test Period ended December 31, 2019, 4 and for the Certification Period ended May 31, 2020.

5 6 5. Q. PLEASE DESCRIBE SCHEDULE H-CERT-17. 7 A. In this and prior general rate review proceedings, Schedule H-CERT-17 shows 8 the calculation of annualized payroll, benefits and pension expense. The

9 annualizations that are calculated through Schedule H-CERT-17 are intended

10 to insure that revenue requirement reflects the ongoing costs of payroll,

11 benefits and pension expense. 12 13 Pages 1 through 4 of the Annualized Payroll reflect Nevada Power’s recorded Power Company Company Power

d/b/a NV Energy 14 operations and maintenance (“O&M”) labor costs for the test year, as well as

Nevada Nevada 15 the estimated change in annualized payroll costs attributable to Nevada and Sierra Pacific Power Company Pacific Power Sierra and Company 16 Power’s O&M activities as of May 31, 2020, the end of the certification 17 period. Annualized payroll costs reflect staffing and salary changes, overtime 18 estimates and other changes in compensation for regular and temporary 19 employees effective as of May 31, 2020. 20 21 Pages 1 and 5 of the Annualized Payroll reflect Nevada Power’s recorded 22 O&M benefit and pension expenses for the test year, as well as the estimated 23 change in annualized benefit and pension expenses attributable to Nevada 24 Power’s O&M activities in 2020. Annualized benefit and pension expenses 25 reflect anticipated increases in 401(k) contributions, health insurance cost 26 changes, and known and measurable 2020 pension costs effective as of 27 May 31, 2020.

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1 6. Q. PLEASE DESCRIBE CHANGES THAT HAVE BEEN MADE TO H- 2 CERT-17, ALSO KNOWN AS THE “PAYROLL ANNUALIZATION,” 3 SINCE NEVADA POWER’S LAST GENERAL RATE REVIEW 4 FILING.

5 A. There was a change in accounting methodology related to non-service pension 6 costs, in compliance with ASC-715-20. Non-service pension costs can no 7 longer be capitalized, resulting in a decrease in O&M expenses of $1.736 8 million, as described in Statement P, and using the actuarial report amounts

9 from Willis Towers Watson. This change in accounting methodology was

10 presented in Sierra’s 2019 General Rate Case, Docket No. 19-06002, and

11 approved by the Commission. 12 13 In his testimony, Michael Behrens explains how pension costs are determined Power Company Company Power

d/b/a NV Energy 14 from the Company’s actuary, Willis Towers Watson.

Nevada Nevada 15 and Sierra Pacific Power Company Pacific Power Sierra and Company 16 7. Q. PLEASE PROVIDE AN OVERVIEW OF THE RESULTS AND 17 DEVELOPMENT OF THE PAYROLL ANNUALIZATION. 18 A. The payroll annualization results in an increase in payroll expense of 19 $6.395 million as of the end of the certification period for the aggregate of 20 Nevada Power, Sierra, and the parent company, NV Energy, Inc., as compared 21 to test period results (see, H-CERT-17, page 3, line 17 through 31). The overall 22 increase between test period and certification period results was largely 23 generated at Sierra and Nevada Power, with a combined increase of 24 $7.668 million, which was offset by a $1.273 million decrease at the parent 25 company. The $6.395 million overall increase was allocated to Sierra, Nevada 26 Power, and the parent company using each entity’s test-year payroll 27 distribution percentages (i.e., by company and by accounts). The jurisdictional

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1 allocated increase at Nevada Power was $2.429 million (see H-CERT-17, page 2 1, line 22). 3

4 8. Q. PLEASE EXPLAIN HOW COMMON FUNCTIONS OR

5 INTERCOMPANY PAYROLL CHARGES IMPACT NEVADA 6 POWER IN THIS SCHEDULE. 7 A. The payroll annualization schedule takes into account the following practices: 8 • Due to the utility holding company structure, Nevada Power

9 employees provide services that are either directly charged or allocated

10 to Nevada Power, its sister operating utility, Sierra, and/or its parent

11 company, NV Energy, Inc.; and 12 • Nevada Power also may receive direct or allocated charges from 13 employees of its sister operating utility and/or parent company as a Power Company Company Power

d/b/a NV Energy 14 result of services their employees performed on behalf of Nevada

Nevada Nevada 15 Power. and Sierra Pacific Power Company Pacific Power Sierra and Company 16 17 9. Q. PLEASE EXPLAIN THE CALCULATION OF THE THREE 18 INDIVIDUAL COMPANIES’ ANNUALIZED PAYROLL EXPENSE 19 ADJUSTMENTS. 20 A. The calculation of each individual Companies annualized payroll expense was 21 performed by determining the annualized payroll amount and subtracting the 22 recorded payroll. 23 Annualized Payroll: The annualized payroll calculation is composed of three- 24 parts:

25 1. The base pay salaries of regular employees were identified by company 26 as of January 1, 2020. Staffing levels were assumed to remain at the 27 January 1, 2020, level for purposes of the estimate as of May 31, 2020.

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1 2. Overtime percentages for regular employees were calculated for non- 2 represented and represented employees based on test year data. The 3 analysis assumes that the same historic rates of overtime will continue 4 by each of the two Companies’ two employee classes going forward.1

5 These four overtime percentages are applied to regular employees’ 6 base pay salaries by company and employee class to estimate the 7 respective overtime payroll.

8 3. Estimates of “Other” compensation, not included in base salaries, used 9 the test year data of each company. Again, the underlying assumption

10 is that historical occurrences or level of “Other” compensation will

11 continue by each of the three companies’ employees in the future. 12 “Other” compensation includes the actual cost of the Short-Term 13 Incentive Pay (“STIP”) payout in 2019 relating to the calendar year Power Company Company Power

d/b/a NV Energy 14 2019 performance, with an adjustment to the December 2019 metrics

Nevada Nevada 15 and reduction for the financial strength metric of the Berkshire and Sierra Pacific Power Company Pacific Power Sierra and Company 16 Hathaway Energy Company (“BHE”) scorecard. Various bonuses and 17 performance awards were removed from the case. Long-Term 18 Incentive Pay is included in the payroll annualization and removed in 19 total in a separate proforma, H-CERT-16. Please refer to the prepared 20 direct testimony of Jennifer Oswald for more information regarding the 21 overall compensation and benefits programs provided to the 22 companies’ employees. 23 24 25

27 1 Employees of NV Energy, Inc. do not receive overtime.

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1 These components – base pay, overtime and revised historic “Other” 2 compensation – were summarized to arrive at the total annualized payroll by 3 company. 4

5 Recorded Payroll: The recorded payroll calculation is composed of two-parts:

6 1. The general ledger costs, identified as payroll through a unique 7 resource type (“RT”) coding, were compiled by individual company.

8 2. Certain payroll costs that were recorded without a unique RT coding 9 were identified by individual company as well.

10 The sum of the parts as described above makes up the recorded and adjusted

11 payroll for the test period. 12 13 Calculation: The calculation of each individual company’s annualized Payroll Power Company Company Power

d/b/a NV Energy 14 Expense adjustment was performed by reducing each company’s annualized

Nevada Nevada 15 payroll by its recorded and adjusted payroll. The “Grand Total” Payroll and Sierra Pacific Power Company Pacific Power Sierra and Company 16 increase in the aggregate amount of $6.395 million and the individual 17 company’s annualized Payroll adjustments are shown in H-CERT-17, page 3, 18 line 31.

20 10. Q. HOW WERE RECENT CHANGES IN THE COMPOSITION OF THE 21 EXECUTIVE TEAM REFLECTED IN THE PAYROLL 22 ANNUALIZATION? 23 A. At the time the payroll animalization was completed, there were no changes at 24 the executive level anticipated from January 1, 2020, to May 31, 2020. 25 Therefore, an adjustment was not made to annualized payroll for executives. 26 However, late in the preparation of the filing (May 14, 2020), Kevin Geraghty, 27

28 Lewis-DIRECT 6

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1 SVP, Operations, departed from the Company. This departure will be 2 addressed and adjustment proposed in the certification period filing. 3 4 An adjustment was made to remove certain items of other compensation paid

5 to any executives, such as signing bonuses, retention bonuses, performance 6 bonuses and severance payments. These reductions result in a lower amount 7 for “Other” compensation shown at H-CERT-17, page 3, line 11.

9 11. Q. PLEASE EXPLAIN THE REDUCTION TO STIP EXPENSES

10 A. In December of 2013, Sierra, Nevada Power and their parent company were

11 purchased by MidAmerican Energy Holding Company, now BHE. As such, 12 the companies have adopted the STIP corporate scorecard based on the six 13 core principals of business operation. In 2017, the corporate scorecard Power Company Company Power

d/b/a NV Energy 14 financial strength metric had a weight of 16.70 percent. This metric was

Nevada Nevada 15 eliminated within Statement N. and Sierra Pacific Power Company Pacific Power Sierra and Company 16 17 In Docket No. 17-06003, there was an additional decrease accepted for the 18 customer service metric to December 2017. This additional decrease was also 19 taken into account in Statement N. 20 21 In Docket No. 19-06002, Sierra’s 2019 general rate case, further STIP 22 adjustments were made to account for the difference between the amount paid 23 using the Q3 scorecard results and the end of year scorecard results. In order 24 to properly account for STIP in this case, STIP was reduced in H-CERT-17, 25 page 3, to the Q4 2019 scorecard of 65.28 percent and was further reduced for 26 the related financial strength metric of 8.33 percent for a total allowed STIP 27 of 56.95 percent compared to the amount funded of 90 percent. Therefore, the

28 Lewis-DIRECT 7

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1 entire STIP reduction is accounted for in H-CERT-17, page 3, to properly 2 allocate based on 2019 payroll. 3 4 As discussed above, Statement N also included adjustments for STIP using

5 2017 allocations. In order to account for adjustments one time, H-CERT-17, 6 page 2, accounted for the entire STIP reduction on page 3 and added back STIP 7 reductions from Statement N. This results in the cumulative impact of 8 Statement N and H-CERT-17 STIP requested in revenue requirement at 56.95

9 percent (December 2019 Scorecard of 65.28 percent less Financial Strength of

10 8.33 percent).

11 12 12. Q. PLEASE EXPLAIN THE ALLOCATION OF EACH INDIVIDUAL 13 COMPANY’S PAYROLL EXPENSE TO NEVADA POWER’S O&M. Power Company Company Power

d/b/a NV Energy 14 A. The allocation of each individual company’s Payroll Expense was performed

Nevada Nevada 15 by determining factors based on the historical payroll charging patterns of each and Sierra Pacific Power Company Pacific Power Sierra and Company 16 company by functional grouping. In other words, the companies (operating 17 utilities and parent) provide services to one another and directly charge and/or 18 allocate the associated payroll costs to each other as appropriate. Therefore, 19 just as payroll is not restricted to the originating or “home” company, the 20 Payroll Expense adjustments are not restricted to the home company. Thus, 21 Payroll Expense adjustments are allocated to each of the companies based on 22 the historical charging patterns of each company. 23 24 25 26 27

28 Lewis-DIRECT 8

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1 13. Q. WHAT IS THE TOTAL ADJUSTMENT TO NEVADA POWER’S 2 COST OF SERVICE THAT RESULTED FROM THE PAYROLL 3 EXPENSE CERTIFICATION ADJUSTMENTS? 4 A. The total cost of service increase is $2.277 million, as shown on H-CERT-17,

5 page 1, line 18. The aggregate of the three individual companies’ Payroll 6 Expense adjustment allocations to the Nevada jurisdiction’s portion of Nevada 7 Power’s O&M is an increase of $2.228 million as shown in H-CERT-17, page 8 1, line 18. A payroll tax adjustment of $0.201 million, as shown on H-CERT-

9 17, page 1, line 20, is added to the $2.228 million to arrive at a total increase

10 of $2.429 million.

12 14. Q. PLEASE DESCRIBE THE BENEFITS PORTION OF THE 13 SCHEDULE. Power Company Company Power

d/b/a NV Energy 14 A. Schedule H-CERT-17 on page 5 of 5 adjusts the cost of benefits expense. The

Nevada Nevada 15 schedule aggregates the adjustments for the estimated net change in and Sierra Pacific Power Company Pacific Power Sierra and Company 16 medical/dental/vision costs (“Medical Costs”) and the 401(k) Company 17 matching costs as compared to the recorded costs during the test period. This 18 schedule reflects an aggregate decrease of $0.647 million, with a Nevada

19 jurisdictional cost of service decrease amount of $0.635 million as shown on 20 H-CERT-17, page 1, line 29. Please refer to Ms. Oswald’s pre-filed direct 21 testimony for more information concerning the companies’ overall

22 compensation and benefit plans. 23 24 25

27 2 Nevada Power expects to update this schedule at the end of the certification period.

28 Lewis-DIRECT 9

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1 15. Q. PLEASE DESCRIBE HOW ESTIMATED MEDICAL COSTS OR 2 HEALTH INSURANCE COSTS WERE DETERMINED FOR THE 3 PAYROLL PROFORMA. 4 A. For purposes of the schedule, Medical Costs were estimated by multiplying

5 the January 2020 accrual amount, adjusted for a one-time payment, by five 6 and adding the result to the amount booked for the last seven months of 2019. 7 Medical costs were then reduced by the test year recorded medical costs to 8 determine the decrease amount of $0.601 million, as shown on H-CERT-17,

9 page 5, line 3. This amount was then combined with the 401(k) Company

10 match and allocated to expense as shown on H-CERT-17, page 5, line 9. The

11 combined decrease of $0.647 million was brought forward to page 1 where it 12 was then allocated to the Nevada jurisdiction for a net adjustment decrease of 13 $0.635 million. Power Company Company Power

d/b/a NV Energy 14

Nevada Nevada 15 16. Q. PLEASE EXPLAIN THE 401(k) COMPANY MATCH ADJUSTMENT. and Sierra Pacific Power Company Pacific Power Sierra and Company 16 A. The adjustment for 401(k) Company match is based on the annualized cost of 17 Company matching contributions as compared to the recorded costs during the 18 test period. The total decrease amount of $0.522 million is shown on H-CERT- 19 17, page 5, line 5. This amount was then combined with the health insurance 20 increase and allocated to expense as shown on H-CERT-17, page 5, line 9. The 21 combined decrease of $0.647 million was brought forward to page 1, where it 22 was then allocated to the Nevada jurisdiction for a net decrease adjustment of 23 $0.635 million.3 24 25 26

27 3 The Company expects to update this portion of the adjustment at the end of the certification period.

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1 17. Q. PLEASE DESCRIBE THE PENSION PORTION OF THE SCHEDULE. 2 A. This schedule includes the cost of retirement benefits for both active and 3 retired employees. Specifically, this schedule adjusts recorded test year costs 4 for Pension Service Costs and Pension Non-Service Costs, as accounted for

5 under ASC 715-20 and ASC 715-30. Within each pension cost classification, 6 there are pension costs, supplemental executive retirement program (“SERP”), 7 and Other Post-Employment Benefits (“OPEB”) as accounted for in ASC 715- 8 60. This schedule shows an aggregate decrease to the Nevada jurisdictional

9 cost of service in the amount of $3.961 million as shown on H-Cert 17, page

10 1, line 35.

12 18. Q. PLEASE EXPLAIN THE PENSION COST ADJUSTMENT. 13 A. The Pension Cost adjustment represents the difference between the annualized Power Company Company Power

d/b/a NV Energy 14 costs of the Company’s retirement plan as compared to the recorded costs

Nevada Nevada 15 during the test period—in this case a decrease in cost. The annualized cost, as and Sierra Pacific Power Company Pacific Power Sierra and Company 16 provided by the consulting actuaries, Willis Towers Watson, is Nevada 17 Power’s allocated share of the NV Energy’s Retirement Plan based on the 18 actuarial estimates for 2020. 19 20 The Pension Service Cost increase is $0.207 million, shown on H-CERT-17, 21 page 5, line 14. This amount was then combined with pension service costs for 22 the restoration and the post retirement adjustments, and allocated to O&M and 23 Nevada Power’s electric department. The result is an increase of 24 $0.142 million as shown on H-CERT-17, page 5, line 22. 25 26 The Pension Non-service Cost decreased $4.076 million, shown on H-CERT- 27 17, page 5, line 26. This amount was then combined with pension non-service

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1 costs for the restoration and the post retirement adjustments. The entire 2 pension non-service cost expense is classified as O&M expense, in compliance 3 with ASC 715-20. See, Statement P for further details. The result is a decrease 4 of $4.178 million as shown on H-CERT-17, page 5, line 32.

5 6 The total pension service costs and total non-service pension costs adjustments 7 are summed to calculate a total pension cost decrease of $4.036 million as 8 shown on H-CERT-17, page 5, line 34. This amount is brought forward to

9 page 1, line 35, where it was then allocated to the Nevada jurisdiction for a net

10 decrease of $3.961 million.

11 12 In his testimony, Mr. Behrens explains how pension costs are determined from 13 the Company’s actuary, Willis Towers Watson. Power Company Company Power

d/b/a NV Energy 14

Nevada Nevada 15 19. Q. PLEASE EXPLAIN THE RESTORATION ADJUSTMENT. and Sierra Pacific Power Company Pacific Power Sierra and Company 16 A. Consistent with prior dockets, the restoration component of SERP has been 17 included in the calculation of annualized pension costs. The recorded 18 restoration costs exceed the annualized costs by $0.016 million, reflecting a 19 decrease of $0.015 million to pension service costs as shown on H-CERT-17, 20 page 5, line 16, and a decrease of pension non-service costs of $0.001 million 21 as shown on H-CERT-17, page 5, line 28. These amounts were then combined 22 with the pension and post retirement adjustments. The pension service costs 23 were allocated to O&M, however, non-service costs were all classified as 24 O&M expense in compliance with ASC 715-20. Nevada Power is not 25 requesting recovery of non-restoration SERP costs in compliance with past 26 Commission orders. 27

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1 20. Q. PLEASE EXPLAIN THE ADJUSTMENT INCLUDED IN THIS 2 SCHEDULE REFERRED TO AS OPEB. 3 A. The OPEB adjustment represents an increase in OPEB costs as a result of the 4 difference between the annualized OPEB costs as compared to the recorded

5 costs during the test period. The annualized cost, as provided by the consulting 6 actuaries, Willis Towers Watson, is Nevada Power’s portion of the NV Energy 7 Post-Retirement Welfare Plan based on the actuarial estimates for fiscal year 8 2020.

10 The recorded OPEB costs exceed the annualized costs by $0.046 million,

11 reflecting an increase of $0.055 million to pension service costs as shown on 12 H-CERT-17, page 5, line 18, and a decrease of pension non-service costs of 13 $0.101 million as shown on H-CERT-17, page 5, line 30. These amounts were Power Company Company Power

d/b/a NV Energy 14 then combined with restoration and pension adjustments. The pension service

Nevada Nevada 15 costs were allocated to O&M, however, non-service costs were all classified and Sierra Pacific Power Company Pacific Power Sierra and Company 16 as O&M expense in compliance with ASC 715-20. 17 18 In his testimony, Mr. Behrens explains how pension costs are determined from 19 the Company’s actuary, Willis Towers Watson. 20

21 21. Q. DOES THIS CONCLUDE YOUR PREPARED DIRECT TESTIMONY?

22 A. Yes, it does. 23 24 25

26 27

28 Lewis-DIRECT 13

Page 94 of 247 Exhibit Lewis-Direct-1 Page 1 of 1

QUALIFICATIONS OF WITNESS Danielle Lewis Project Manager – Finance NV Energy 6100 Neil Rd. Reno, NV 89511

Danielle Lewis has over 5 years of experience in various capacities at NV Energy, primarily focused on SEC financial reporting and accounting research. Mrs. Lewis has extensive knowledge of the application of Generally Accepted Accounting Principles and Federal Energy Regulatory Commission (“FERC”) accounting compliance. Mrs. Lewis has prepared and/or directed the preparation of various reports, analyses, and financial statements submitted to state jurisdictions, FERC and the Securities and Exchange Commission. Mrs. Lewis has previously testified in Sierra Pacific Power’s 2019 general rate case and has previously assisted in supporting testimony and data requests in prior filings before the Public Utilities Commission of Nevada.

EMPLOYMENT HISTORY

2018 to Present NV Energy Project Manager – Finance Prepared and reviewed financial data and testimony before the PUCN. Coordinate and execute special projects, including the implementation of lease accounting software.

2017 to 2018 NV Energy Manager, External Financial Reporting Responsibilities include compliance with the FERC Uniform System of Accounts, the SEC requirements and the requirements of other federal and state regulatory agencies. Reviewed and analyzed financial data for SEC and FERC reporting. Trained and supervised external reporting accounting staff.

2016 to 2017 NV Energy Manager, Financial and Regulatory Strategy

2014 to 2016 NV Energy Senior Technical Accountant

2010 to 2014 Grant Thornton, LLP Senior Audit Associate

2009 NV Energy Accounting Intern

EDUCATION

University of Nevada, Reno BS in Business Administration, Accounting major, Economics minor – 2009 Masters of Accountancy – 2010

CERTIFICATION

Certified Public Accountant Nevada CPA-5322 – Issued 2012, active status

Page 95 of 247 Nevada Power Company and Sierra Pacific Power Company d/b/a NV Energy 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 LEWIS, exhibits; his knowledge his said person; that person; said thereto would,underoath,bethesame. Date: ______Date: ______

usat o h rqieet o NS 305 n NC 703.710, NAC and 53.045 NRS of requirements the to Pursuant I perjuryforegoingand penalty correct. true under of thatthe is declare s that states that 5/26/2020 such testimony such and the he is the person the is she belief; and that if asked the questions appearing therein, his answer his therein, appearing questions the asked if that and belief; answers and/or information appearing therein are true to the best of best the to true are therein appearing information and/or answers

and/or exhibits were prepared by or under the direction of direction the under or by prepared were exhibits and/or

AFFIRMATION AFFIRMATION identified in the foregoing prepared testimony and/or testimony prepared foregoing the in identified

DANIELLE LEWIS ______

DANIELLE Page 96of 247 s

DEBORAH J. FLORENCE

Page 97 of 247

1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

2 Nevada Power Company d/b/a NV Energy Docket No. 20-06___ 3 2020 General Rate Case 4 Prepared Direct Testimony of 5 Deborah J. Florence 6 Revenue Requirement 7

8 I. INTRODUCTION BACKGROUND AND PURPOSE OF TESTIMONY 9 1. Q. PLEASE STATE YOUR NAME, TITLE AND ADDRESS.

10 A. My name is Deborah J. Florence. I am the Director of Corporate Taxes for NV

11 Energy Inc. (“NV Energy”), Nevada Power Company d/b/a NV Energy (“Nevada

12 Power” or the “Company”), and Sierra Pacific Power Company d/b/a NV Energy 13 (“Sierra” and together with Nevada Power the “Companies”). I am responsible for 14 all areas of taxation for Nevada Power and Sierra. I work primarily out of Sierra’s d/b/a NV Energy Nevada Power Company Company Power Nevada 15 corporate offices in Reno, which are located at 6100 Neil Road. I am filing testimony

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 on behalf of Nevada Power. 17

18 2. Q. PLEASE DESCRIBE YOUR HISTORY WITH NEVADA POWER. 19 A. With the merger of Nevada Power and Sierra as wholly owned subsidiaries of NV 20 Energy, I was promoted from a Senior Tax Analyst with Sierra to the Corporate Tax 21 Manager for the merged companies. On January 2, 2005, I was promoted to the 22 Director of Corporate Taxes. 23 24 25 26 27

28 Florence – DIRECT 1

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1 3. Q. PLEASE DESCRIBE YOUR BACKGROUND AND EXPERIENCE IN THE 2 INDUSTRY. 3 A. Before coming to Sierra in 1997, I worked for seven years in the Certified Public 4 Accounting firm of Deloitte & Touche, LLP. As tax manager there I was responsible 5 for all areas of tax compliance, research and planning for several large corporate 6 clients. 7

8 4. Q. PLEASE SUMMARIZE YOUR EDUCATIONAL BACKGROUND AND 9 PROFESSIONAL QUALIFICATIONS.

10 A. I have a Bachelor of Science Degree in Accounting and a Master of Science Degree

11 majoring in taxation, both from Weber State University. I am a Certified Public

12 Accountant in Nevada. I have included as Exhibit Florence-Direct-1 a complete 13 statement of my qualifications. 14 d/b/a NV Energy Nevada Power Company Company Power Nevada 15 5. Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE THE PUBLIC

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 UTILITIES COMMISSION OF NEVADA (“COMMISSION”)? 17 A. Yes. I have testified before the Commission in many proceedings, most recently in 18 Sierra’s 2019 general rate case (Docket No. 19-06002), Nevada Power’s 2017 19 general rate case (Docket No. 17-06003) and the hearing on the Company’s Tax 20 Rate Rider (Docket No. 18-02010). 21

22 6. Q. WHAT IS THE PURPOSE OF YOUR PREPARED DIRECT TESTIMONY? 23 A. I am sponsoring the calculations of income taxes and taxes other than income taxes 24 in this general rate case filing. I have provided testimony on the calculation of 25 excess deferred taxes and the related Average Rate Assumption Method (“ARAM”) 26 adjustments. 27

28 Florence – DIRECT 2

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1 Specifically, I am sponsoring the following Statements and Schedules: 2 • Statement M, Calculation of Federal Income Tax for the Test Period Ended 3 December 31, 2019.

4 • Schedule M-1, Reconciliation of Book Income to Taxable Income for the 5 Tax Year 2018 and the Three Preceding Years.

6 • Schedule M-2, Comparison of Tax Depreciation to Book. Depreciation for 7 the Tax Year 2018 and the Three Preceding Years.

8 • Schedule M-3, Consolidated Income and Deductions Summary for the Tax 9 Year Ended December 31, 2018.

10 • Schedule M-4, Monthly Book Balance of Accumulated Deferred Income

11 Taxes from January 2019 to December 2019.

12 • Schedule M-5, Taxes Other Than Income. 13 • Schedule H-CERT-08, Taxes Other Than Income for the Test Period. Ended 14 December 31, 2019, and for the Certification Period Ended May 31, 2020. d/b/a NV Energy Nevada Power Company Company Power Nevada 15 • Schedule H-CERT-09, Income Tax M-1 Items for the Test Period Ended

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 December 31, 2019, and for the Certification Period Ended May 31, 2020.

17 • Schedule H-CERT-10, Deferred Income Tax Expense for the Test Period 18 Ended December 31, 2019, and for the Certification Period Ended May 31, 19 2020.

20 • Schedule H-CERT-11, Income Tax Ratebase Adjustments for the Test 21 Period Ended December 31, 2019, and for the Certification Period Ended 22 May 31, 2020.

23 • Schedule H-CERT-15, Amortization of ITC and JDIC for the Test Period 24 Ended December 31, 2019, and for the Certification Period Ended May 31, 25 2020. 26 27

28 Florence – DIRECT 3

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1 • Schedule H-CERT-44 Excess ADIT Protected and Unprotected Regulatory 2 Liability.

3 • Schedule H-EC-9, Income Tax M-1 Items for the ECIC Period Ended 4 December 31, 2020.

5 • Schedule H-EC-10, Deferred Income Tax Expense for the ECIC Period 6 ended December 31, 2020.

7 • Schedule H-EC-11, Income Tax Ratebase Adjustments for the ECIC Ended 8 December 31, 2020.

9 • Statement P, Item 7. Presentation changes for ARAM.

11 7. Q ARE YOU SPONSORING ANY EXHIBITS?

12 A. Yes, I am sponsoring the following exhibits: 13 • Exhibit Florence-Direct-1 Statement of Qualifications 14 d/b/a NV Energy Nevada Power Company Company Power Nevada 15 II. STATEMENTS AND SCHEDULES

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 8. Q. PLEASE DESCRIBE STATEMENT M AND SCHEDULES M-1 THROUGH 17 M-5. 18 A. Statement M has been prepared in accordance with sections 703.2411 through 19 703.2435 of the Nevada Administrative Code (“NAC”). Statement M shows the 20 computation of allowances for federal income tax for the 12 months ended May 31, 21 2020 along with related schedules that: 22 • Reconcile book and tax income for the last four filed tax returns (M-1). 23 • Detail the difference between tax and book depreciation for the last four filed 24 tax returns (M-2). 25 • Provide details of the last filed consolidated tax return (M-3). 26 27

28 Florence – DIRECT 4

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1 • Provide monthly balances by deferred income tax account for each month of 2 the test period (M-4). 3 • Provide details of taxes other than income taxes for the test period and the 4 projected period (M-5). 5

6 9. Q. PLEASE DESCRIBE SCHEDULE H-CERT-08. 7 A. H-CERT-08 shows the adjustment relating to taxes other than income for the change 8 between the test period ended December 31, 2019, and the certification period

9 ending May 31, 2020.

11 10. Q. PLEASE DESCRIBE SCHEDULE H-CERT-09.

12 A. Schedule H–CERT-09 reflects the tax adjustments for cost of service items for the 13 test and certification periods. The cost of service tax adjustments are divided into 14 two categories: permanent/flow-through and normalized. Permanent/flow-through d/b/a NV Energy Nevada Power Company Company Power Nevada 15 items are those which increase or decrease taxes based on the actual amount due to

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 the Internal Revenue Service (“IRS”). Adjustments for normalized items do not 17 increase or decrease total tax expense since offsetting deferred taxes are provided as 18 shown on Schedule H-CERT-10, which I describe below. The certification 19 adjustments shown on Schedule H-CERT-09 result from the annualization of certain 20 tax items and from the tax effect of other adjustments included in the test period. 21

22 11. Q. PLEASE DESCRIBE SCHEDULE H-CERT- 10. 23 A. Schedule H-CERT-10 reflects adjustments for deferred income taxes associated 24 with liberalized depreciation and various other normalized items as shown on 25 Schedule H-CERT-09. The certification adjustments shown on Schedule H-CERT- 26 27

28 Florence – DIRECT 5

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1 10 result from the annualization of certain tax items and from the tax effect of other 2 adjustments included in the test period. 3

4 12. Q. PLEASE DESCRIBE SCHEDULE H-CERT-11. 5 A. Schedule H-CERT-11 reflects the adjustment to rate base resulting from income 6 taxes generated by items included in rate base, such as deferred taxes on the 7 differences between book and tax depreciation.

8 9 13. Q. PLEASE DESCRIBE SCHEDULE H-CERT-15.

10 A. Schedule H-CERT-15 reflects the adjustments to the amortization of Investment Tax

11 Credit resulting from annualization.

13 14. Q. PLEASE DESCRIBE SCHEDULE H-CERT-44. 14 A. Schedule H-CERT-44 reflects the adjustment necessary to include the amortization d/b/a NV Energy Nevada Power Company Company Power Nevada 15 of unprotected excess deferred taxes over three years and the inclusion of ARAM

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 amortization on the protected balances of excess deferred income taxes.

17 18 15. Q. WHERE ARE THESE REPRESENTED IN STATEMENT H? 19 A. Both the current year ARAM amount and one year of the three year amortization for 20 the regulatory liability established by the order in Docket No. 18-02010 are included 21 on line 20, column (c) of Statement H page 2 of 6.

22 23 16. Q. PLEASE DESCRIBE THE PRESENTATIONS CHANGES IN STATEMENT 24 P ITEM 7. 25 A. Total flow through tax expense including all ARAM is now shown on line 11 of H- 26 Cert-09. The amount recaptured as required by the order in Docket No. 18-02010 27

28 Florence – DIRECT 6

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1 is shown on line 12 of H-Cert-09. The difference between the total flow through 2 and the amount recaptured is due to flow through not related to the 2017 Tax Cuts 3 and Jobs Act.

4 5 17. Q. HOW WAS THIS PRESENTED IN PRIOR RATE PROCEEDINGS? 6 A. Total flow through was included as part of liberalized tax depreciation and the 7 related deferred income taxes. This presentation is merely a reclassification to 8 provide easy reference.

10 18. Q. PLEASE DESCRIBE SCHEDULE H-EC-09.

11 A. Schedule H–EC-09 reflects the tax adjustments for cost of service items for the as

12 updated for the ECIC period. 13

14 19. Q. PLEASE DESCRIBE SCHEDULE H-EC-10. d/b/a NV Energy Nevada Power Company Company Power Nevada 15 A. Schedule H-EC-10 reflects adjustments for deferred income taxes associated with

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 liberalized depreciation and various other normalized items as shown on Schedule 17 H-EC-09 updated for the ECIC period. 18

19 20. Q. PLEASE DESCRIBE SCHEDULE H-EC-11.

20 A. Schedule H-EC-11 reflects the adjustment to rate base resulting from income taxes 21 generated by items included in rate base, such as deferred taxes on the differences 22 between book and tax depreciation as updated for the ECIC period. 23

24 21. Q. DOES THIS COMPLETE YOUR PREPARED DIRECT TESTIMONY?

25 A. Yes, it does. 26 27

28 Florence – DIRECT 7

Page 104 of 247 Exhibit-Florence-Direct-1 Page 1 of 1

STATEMENT OF QUALIFICATIONS DEBORAH J. FLORENCE

My name is Deborah J. Florence. I am the Director of Corporate Taxes for NV Energy Inc.

(formerly Sierra Pacific Resources), Nevada Power Company and Sierra Pacific Power

Company. My business address is 6100 Neil Road, Reno, Nevada.

I graduated from the Weber State University in 1990 with a Masters of Science Degree majoring in taxation and a Bachelor’s of Science Degree majoring in accounting. I am a Certified Public

Accountant in the state of Nevada.

From August of 1990 until April of 1997, I was employed by the Certified Public Accounting firm of Deloitte & Touche LLP. As a tax manager, I was responsible for all areas of tax compliance, research, and planning for several large corporate clients. I supervised up to 10 staff members.

In April of 1997, I was employed by Sierra Pacific Power Company as a Senior Tax Analyst in the Corporate Tax Department. In December of 2000, I was promoted to Corporate Tax Manager for Sierra Pacific Resources. In January of 2005, I was promoted to Corporate Tax Director. I supervise 7 people and I am responsible for all areas of taxation for Nevada Power Company,

Sierra Pacific Power Company and multiple subsidiaries.

Page 105 of 247 1 AFFIRMATION 2 3 Pursuant to the requirements of NRS 53.045 and NAC 703.710, 4 DEBORAH FLORENCE, states that she is the person identified in the foregoing prepared 5 testimony and/or exhibits; that such testimony and/or exhibits were prepared by or under the 6 direction of said person; that the answers and/or information appearing therein are true

7 to the best of his knowledge and belief; and that if asked the questions appearing therein, 8 his answers thereto would, under oath, be the same.

= 10 I declare under penalty of perjury that the foregoingis true and correct...... Ei ;c.U Q .., 11 8 Q �t �u u Q 12 Date: ... Q.,= r-l '--'-" u --='--1,sL�l/Laoao �'-,,,-..,,""'-"-""'-"""--'--- - If) -q(,eouvtc!z__dwu/2 u� DEBORAH FLORENCE 0;: ·- C � u CII 13 Ill CII -... "O��C11S CII ;.. I: 14 .2! z fl.I = 15 16

18 19

20 21 22 23 24 25 26 27 28

Page 106 of 247 HAROLD WALKER, III

Page 107 of 247

NEVADA POWER COMPANY D/B/A NV ENERGY LAS VEGAS, NEVADA

DIRECT TESTIMONY OF HAROLD WALKER, III

CONCERNING LEAD-LAG STUDY FOR DETERMINATION OF CASH WORKING CAPITAL

APRIL 2020

Prepared by: GANNETT FLEMING VALUATION AND RATE CONSULTANTS, LLC

Valley Forge, Pennsylvania

Page 108 of 247

BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA Nevada Power Company d/b/a NV Energy 2020 General Rate Case Docket No. 20-06___

Revenue Requirement

PREPARED DIRECT TESTIMONY OF

Harold Walker III

TABLE OF CONTENTS I. INTRODUCTION ...... 1

II. SCOPE OF TESTIMONY ...... 1

III. PRINCIPLES OF WORKING CAPITAL ...... 2

IV. SUMMARY OF WORKING CAPITAL ...... 3

V. LEAD-LAG STUDY ...... 3

VI. RESULTS OF THE LEAD-LAG STUDY ...... 6

VII. CONCLUSION ...... 10

Page 109 of 247

1 I. INTRODUCTION 2 1. Q. PLEASE STATE YOUR NAME, AND BUSINESS ADDRESS AND THE 3 PARTY FOR WHOM YOU ARE FILING TESTIMONY. 4 A. My name is Harold Walker, III. My business mailing address is 1010 Adams 5 Avenue, Audubon, Pennsylvania, 19403. I am filing testimony on behalf of Nevada 6 Power Company d/b/a NV Energy (“Nevada Power” or the “Company”). 7

8 2. Q. BY WHOM ARE YOU EMPLOYED AND IN WHAT CAPACITY? 9 A. I am employed by Gannett Fleming Valuation and Rate Consultants, LLC as 10 Manager, Financial Studies. 11

12 3. Q. WHAT IS YOUR EDUCATIONAL BACKGROUND AND EMPLOYMENT

13 EXPERIENCE? 14 A. My educational background, business experience and qualifications are provided

15 in Exhibit Walker-Direct-1. 16

17 II. SCOPE OF TESTIMONY 18 4. Q. WHAT IS THE SCOPE OF YOUR TESTIMONY 19 A. The purpose of my testimony is to recommend the appropriate electric revenue lag 20 days and expense lead days for the determination of the cash working capital

21 allowance, on which Nevada Power should be afforded an opportunity to earn as 22 part of its rate base for its Nevada jurisdictional electric service operations.1 23 24 25

26 1 The Company’s expense lead days include lead days for operations and maintenance expenses, taxes and interest 27 expense. 28 Walker-DIRECT 1

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1 My recommendation is based upon the results of a lead-lag analysis conducted for

2 Nevada Power’s electric service operations. My testimony is supported by Exhibit 3 Walker-Direct-2. 4

5 III. PRINCIPLES OF WORKING CAPITAL 6 5. Q. WOULD YOU PLEASE EXPLAIN THE RATEMAKING PRINCIPLES 7 CONCERNING THE INCLUSION OF WORKING CAPITAL AS AN 8 ELEMENT OF RATE BASE? 9 A. Yes. The working capital allowance is a component of rate base. A utility’s need 10 to recover the cost of working capital was first recognized in the noted U.S. 11 Supreme Court case, Smyth v. Ames.2 Among the many benchmarks established 12 in the case was the “property devoted to public use doctrine” as a basis for fixing

13 rates. The case recognized that among the matters to be considered in determining 14 the value of property used was “the sum required to meet operating expenses.”3 15 Since that time, working capital required to meet operating expenses has generally 16 been recognized as a proper item to be included in the rate base on which a utility 17 is entitled to earn a return. 18 19 The rationale for the inclusion of operating working capital in rate base is to 20 compensate investors for the use of that amount of their funds over and above their

21 investment in plant. Operating working capital bridges the gap between the time 22 funds are provided by investors to meet operating expenses incurred to provide 23 service to customers, and the time the revenue is received from those customers as 24 reimbursement for the costs of these services. 25

26 2 Smyth v. Ames, 169 U.S. 466 (1898). 27 3 Id. at 547. 28 Walker-DIRECT 2

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1 IV. SUMMARY OF WORKING CAPITAL 2 6. Q. WHAT ARE THE COMPONENTS OF THE COMPANY’S WORKING 3 CAPITAL? 4 A. Nevada Power’s working capital is comprised of materials and supplies,

5 prepayments and “other” elements. My testimony presents the revenue lag days and 6 expense lead days used to determine the cash working capital component of the 7 Company’s total working capital. The materials and supplies, prepayments and 8 “other” elements of Nevada Power’s working capital are included in the direct

9 testimony of various Company witnesses. My recommended revenue lag days and 10 expense lead days are based upon the results of a lead-lag analysis conducted for 11 Nevada Power’s electric service operations. A summary of Nevada Power’s

12 revenue lag days and expense lead days is shown on page 2 of Exhibit Walker-

13 Direct-2. 14

15 V. LEAD-LAG STUDY 16 7. Q. WHAT DOES A LEAD-LAG STUDY MEASURE AND HOW IS IT 17 MEASURED? 18 A. The lead-lag study in this testimony measures the level of funding required to 19 operate on a day-to-day basis in providing for the cost of operations and 20 maintenance (“O&M”) expenses, taxes and interest expense. This is measured by

21 calculating the net lag between the amount of time elapsed between when a 22 company provides a service to its customers and when the company receives 23 payments from its customers, and the amount of time elapsed between when a 24 company receives goods and services and when the company pays its suppliers for 25 those goods and services. The difference between these two elapsed periods of time 26 is known as the “net lag.” 27

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1 The net lag is multiplied by the average daily cost of O&M expenses, taxes and 2 interest expense items to determine the cash working capital. Cash working capital 3 for O&M expenses, taxes and interest expense is included in rate base to 4 compensate investors for the use of their funds over and above their investment in 5 plant, and to provide investors with a return on the funds required by a company 6 for daily operations. 7

8 8. Q. WHAT ARE THE COMPONENTS OF A LEAD-LAG STUDY? 9 A. There are two primary elements of a lead-lag analysis: revenue lags and expense 10 leads. The revenue lag is the sum of two distinct components: the service period 11 lag and the payment lag.4 The revenue lag is the elapsed time between the delivery 12 of a company’s product to its customers and when a company receives payment for

13 the delivery of the product. Investor-provided funds are required to keep a 14 company running during the revenue lag time period, when the revenue stream is 15 temporarily insufficient to finance daily operational needs. 16 17 The expense lead is the sum of two distinct factors: the service lead and the payment 18 lead. The expense lead is the elapsed time between when a good or service is 19 provided to a company and when a company pays its supplier for the good or 20 service. During the expense lead time period, cash received from customers may

21 temporarily exceed a company’s payments to its suppliers for goods or services, 22 and the excess may be used to repay investor-provided funds. The net difference 23 between the revenue lag and expense lead denotes a company’s cash working 24 capital requirement. 25 26

27 4 The payment lag includes the billing lag and the collection lag. 28 Walker-DIRECT 4

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1 9. Q. WHAT TIME PERIOD DOES YOUR LEAD-LAG STUDY ENCOMPASS? 2 A. The lead-lag study in this case analyzed the revenues and the associated cost of 3 O&M expenses, taxes and interest expense during the 12 months ended December 4 31, 2019, (“Test Year”) to derive the appropriate lag (lead) days. While the lead 5 and lag days were calculated from Test Year results, the expenses that they are 6 applied to are for the Company’s certification period ended May 31, 2020. 7

8 10. Q. WAS THE LEAD-LAG STUDY THAT YOU CONDUCTED FOR THE 9 COMPANY PREPARED USING SIMILAR METHODS AND 10 TECHNIQUES IN PRIOR FILINGS? 11 A. Yes. The methodology used in the lead-lag study is fundamentally the same as that 12 used in the Company’s prior lead-lag studies filed with the Public Utilities

13 Commission of Nevada (the “Commission”). Although the same general 14 methodology has been utilized in prior lead-lag studies, over time, certain parts of 15 the approach have been adapted to reflect either changes in expense payment 16 practices by the Company, recommendations by the Commission’s Regulatory 17 Operations Staff, the Bureau of Consumer Protection and/or determinations by the 18 Commission. 19

20 11. Q. WHAT DATA SET DID YOU UTILIZE IN YOUR LEAD-LAG STUDY?

21 A. The lead-lag study reflects information provided by the Company. Once the data 22 had been provided, data validation was performed by comparing an actual invoice 23 or a bill with data from Nevada Power’s systems to ensure accuracy. 24 25 The revenue lag data set was developed from each rate schedule. For rate schedules 26 with the largest customer counts, such as residential and general service, a statistical 27 sample was taken of random accounts selected using a computer model that queried

28 Walker-DIRECT 5

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1 the database containing customer billing information for each month of the test 2 year. The revenue lags for all other rate schedules were determined by analyzing 3 the individual lag days for all customers served under each rate schedule during the 4 test year. 5 6 The expense lead data sets were developed in a similar method and reflect the

7 service beginning and ending dates, the amount purchased, and the date of payment. 8 For the largest expense item (goods and services), a statistical sample was taken of

9 random accounts selected using a computer model that queried the database 10 containing vendor billing information for each month of the test year. The expense 11 leads for all other expense items were determined by analyzing the individual lead 12 days for all vendors in the account during the test year to reflect the service

13 beginning and ending dates, the amount purchased and the date of payment. 14

15 VI. RESULTS OF THE LEAD-LAG STUDY 16 12. Q. WHAT ARE THE RESULTS OF THE LEAD-LAG STUDY? 17 A. Page 2 of Exhibit Walker-Direct-2 sets forth the results of the lead-lag study and 18 summarizes the revenue lag days and the expense lead days. The revenue lag days 19 were determined to be 37.47 days and the various expense lead days, determined 20 by line item, range from 10.45 days to 372.33 days.

22 13. Q. PLEASE EXPLAIN THE PROCEDURES USED TO DETERMINE THE 23 REVENUE LAG. 24 A. Page 3 of Exhibit Walker-Direct-2 (Schedule I) summarizes the development of the 25 37.47 revenue lag days. The lag days for revenue is comprised of the service period 26 lag and the payment lag. 27

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1 14. Q. PLEASE EXPLAIN THE PROCEDURES USED TO DETERMINE THE 2 SERVICE PERIOD LAG DAYS FOR REVENUE. 3 A. The service period lag is the average time between actual meter readings of 30.42 4 days based on monthly billing (365 days 12 months). The average time between 5 meter readings, 30.42 days, is divided by two to produce a midpoint, or service 6 period lag of 15.21 days. A mid-point is used because it is assumed service is 7 provided evenly over the service period. 8

9 15. Q. PLEASE DESCRIBE THE PROCEDURE USED TO CALCULATE THE 10 PAYMENT LAG PORTION OF THE REVENUE LAG. 11 A. The payment lag is the average number of days from the meter read date and the 12 date customers’ payments are received. This was determined for each customer or

13 each customer sampled and produced in an average payment lag of 22.26 days for 14 the Company. 15

16 16. Q. PLEASE SUMMARIZE THE TOTAL REVENUE LAG. 17 A. The total revenue lag of 37.47 lag days for Nevada Power is shown on page 3 of 18 Exhibit Walker-Direct-2 (Schedule I). It includes a 15.21-day service period lag 19 and a payment lag of 22.26 days. 20

21 17. Q. PLEASE EXPLAIN THE CALCULATION OF EXPENSE LEAD DAYS

22 SHOWN ON PAGE 2 OF EXHIBIT WALKER-DIRECT-2. 23 A. The expense lead days shown on page 2 are comprised of three major sub-accounts: 24 O&M expenses, taxes, and interest expense. For the expense items shown, the lead 25 days were generally calculated for each invoice or account based on the midpoints 26 27

28 Walker-DIRECT 7

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1 of the service periods to the dates the Company paid the invoices or accounts.5 2

3 18. Q. HOW WERE THE LEAD DAYS DETERMINED FOR THE OTHER O&M 4 EXPENSES SHOWN ON PAGE 2 OF EXHIBIT WALKER-DIRECT-2? 5 A. For the other O&M expenses shown, the lead days were determined for each 6 invoice or account sampled based on the midpoints of the service periods to the 7 dates the Company paid the invoices or accounts based on the actual data or a 8 sampling of data.6

9 10 For example, the weighted average lead days for natural gas and natural gas 11 transportation expense equal 40.00 days and is developed on page 7 (Exhibit 12 Walker-Direct-2). The lead days for natural gas and natural gas transportation

13 expense were calculated for each invoice examined based on the midpoints of the 14 service periods to the dates the Company paid the invoices. 15 16 Similar analyses were conducted for other expense items: purchased power lead 17 days of 38.36 days are developed on page 8; goods and services (Nevada) lead days 18 of 35.85 days are developed on pages 9-14; labor lead days of 10.45 days are 19 developed on page 15; and leases expense lead days of 12.11 days are developed 20 on pages 29-30.

21 22 23 24

25 5 As was the case with the revenue service period, a midpoint was generally used for the service lead because it is 26 assumed service is provided evenly over the service period. 6 For goods and services expenses, a statistical sample was taken of random accounts selected using a computer model 27 that queried the database containing vendor billing information for each month of the test year. 28 Walker-DIRECT 8

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1 19. Q. PLEASE EXPLAIN HOW THE LEAD DAYS WERE DETERMINED FOR 2 THE GOODS AND SERVICES EXPENSE SHOWN ON PAGE 2 OF 3 EXHIBIT WALKER-DIRECT-2.

4 A. The goods and services expense line item lead days include a sampling of Nevada 5 Power invoices that were not included in the other O&M expense line items. The 6 supporting information used to determine the 35.85 lead days is shown on pages 9- 7 14 and reflects the sampling process described previously. The lead days for goods 8 and services were calculated as the difference between the payment date and the

9 actual beginning and ending service date for each voucher analyzed in order to 10 calculate lead days in accordance with Commission’s Order in Docket No. 08- 11 12002. 12

13 20. Q. HOW WERE THE LEAD DAYS DETERMINED FOR THE TAX 14 EXPENSES SHOWN ON PAGE 2 OF EXHIBIT WALKER-DIRECT-2? 15 A. For most of the taxes, the lead days were calculated based on the midpoint of the 16 tax liability period to the payment date, weighted by the actual amount paid. The 17 exception to this was income taxes, where the lead days were calculated based on 18 the midpoint of the tax period to the payment date, weighted by the percent of the 19 payment required. The taxes line items shown on page 2 include: mill tax expense 20 lead days of 145.58 (developed on page 16); possessory interest tax (Moapa)

21 expense lead days of 45.32 (developed on page 17); possessory interest tax 22 (Navajo) expense lead days of 214.33 (developed on page 18); Nevada use tax on 23 Purchasing Card (P Card) expense lead days of 15.27 (developed on page 19); 24 property tax (Arizona) expense lead days of 214.33 (developed on page 20); 25 unemployment tax expense lead days of 76.38 (developed on page 21); Nevada 26 modified business tax (MBT) expense lead days of 76.18 (developed on page 22); 27 FICA expense lead days of 11.00 (developed on page 23); franchise tax Nevada

28 Walker-DIRECT 9

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1 counties expense lead days of 372.33 (developed on page 24); federal income tax 2 (current) expense lead days of 37.00 (developed on page 25); and Nevada 3 commerce tax expense lead days of 225.61 (developed on page 28). 4

5 21. Q. HOW WERE THE LEAD DAYS DETERMINED FOR THE INTEREST 6 EXPENSES SHOWN ON PAGE 2 OF EXHIBIT WALKER-DIRECT-2? 7 A. For the interest expense line items shown, the lead days were calculated based on 8 the midpoint of the interest liability period to the payment date. The interest

9 expense line items shown on page 2 include: long-term debt expense lead days of 10 90.00 (developed on page 26) and deposits expense lead days of 105.00 (developed 11 on page 27).

13 VII. CONCLUSION 14 22. Q. DOES THIS CONCLUDE YOUR PREPARED DIRECT TESTIMONY? 15 A. Yes, it does. 16

17 18 19 20

21 22 23 24 25 26 27

28 Walker-DIRECT 10

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Professional Qualifications of Harold Walker, III Manager, Financial Studies Gannett Fleming Valuation and Rate Consultants, LLC.

EDUCATION

Mr. Walker graduated from Pennsylvania State University in 1984 with a Bachelor of Science Degree in Finance. His studies concentrated on securities analysis and portfolio management with an emphasis on economics and quantitative business analysis. He has also completed the regulation and the rate-making process courses presented by the College of Business Administration and Economics Center for Public Utilities at New Mexico State University. Additionally, he has attended programs presented by The Institute of Chartered Financial Analysts (CFA).

Mr. Walker was awarded the professional designation "Certified Rate of Return Analyst" (CRRA) by the Society of Utility and Regulatory Financial Analysts. This designation is based upon education, experience and the successful completion of a comprehensive examination. He is also a member of the Society of Utility and Regulatory Financial Analysts (SURFA) and has attended numerous financial forums sponsored by the Society. The SURFA forums are recognized by the Association for Investment Management and Research (AIMR) and the National Association of State Boards of Accountancy for continuing education credits.

Mr. Walker is also a licensed Municipal Advisor Representative (Series 50) by Municipal Securities Rulemaking Board (MSRB) and Financial Industry Regulatory Authority (FINRA).

BUSINESS EXPERIENCE

Prior to joining Gannett Fleming Valuation and Rate Consultants, LLC., Mr. Walker was employed by AUS Consultants - Utility Services. He held various positions during his eleven years with AUS, concluding his employment there as a Vice President. His duties included providing and supervising financial and economic studies on behalf of investor owned and municipally owned water, waste water, electric, natural gas distribution and transmission, oil pipeline and telephone utilities as well as resource recovery companies.

In 1996, Mr. Walker joined Gannett Fleming Valuation and Rate Consultants, LLC. In his capacity as Manager, Financial Studies and for the past twenty years, he has continuously studied rates of return requirements for regulated firms. In this regard, he supervised the preparation of rate of return studies in connection with his testimony and in the past, for other individuals. He also assisted and/or developed dividend policy studies, nuclear prudence studies, calculated fixed charge rates for avoided costs involving cogeneration projects, financial decision studies for capital budgeting purposes and developed financial models for determining future capital requirements and the effect of those requirements on investors and ratepayers, valued utility property and common stock for acquisition and divestiture, and assisted in the private placement of fixed capital securities for public utilities.

Head, Gannett Fleming GASB 34 Task Force responsible for developing Governmental Accounting Standards Board (GASB) 34 services, and educating Gannett Fleming personnel and Gannett Fleming clients on GASB 34 and how it may affect them. The GASB 34 related services include inventory of assets, valuation of assets, salvage estimation, annual depreciation rate determination, estimation of depreciation

Page 1 of 6

Page 120 of 247 Exhibit Walker-Direct-1 Page 2 of 6 reserve, asset service life determination, asset condition assessment, condition assessment documentation, maintenance estimate for asset preservation, establishment of condition level index, geographic information system (GIS) and data management services, management discussion and analysis (MD&A) reporting, required supplemental information (RSI) reporting, auditor interface, and GASB 34 compliance review.

Mr. Walker was also the Publisher of C.A. Turner Utility Reports from 1988 to 1996. C.A. Turner Utility Reports is a financial publication which provides financial data and related ratios and forecasts covering the utility industry. From 1993 to 1994, he became a contributing author for the Fortnightly, a utility trade journal. His column was the Financial News column and focused mainly on the natural gas industry.

In 2004, Mr. Walker was elected to serve on the Board of Directors of SURFA. Previously, he served as an ex officio director and advisor to SURFA’s then President. In 2000, Mr. Walker was elected President of SURFA for the 2001-2002 term. Prior to that, he was elected to serve on the Board of Directors of SURFA during the period 1997-1998 and 1999-2000. Currently, he also serves on the Pennsylvania Municipal Authorities Association, Electric Deregulation Committee.

EXPERT TESTIMONY

Mr. Walker has submitted testimony or been deposed on various topics before regulatory commissions and courts in 25 states including: Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Missouri, New Hampshire, Nevada, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia. His testimonies covered various subjects including: fair market value, the taking of natural resources, appropriate capital structure and fixed capital cost rates, depreciation, fair rate of return, purchased water adjustments, synchronization of interest charges for income tax purposes, valuation, cash working capital, lead-lag studies, financial analyses of investment alternatives, and fair value. The following tabulation provides a listing of the electric power, natural gas distribution, telephone, wastewater, and water service utility cases in which he has been involved as a witness. Additionally, he has been involved in a number of rate proceedings involving small public utilities which were resolved by Option Orders and therefore, are not listed below.

Client Docket No.

Alpena Power Company U-10020 Armstrong Telephone Company - Northern Division 92-0884-T-42T Armstrong Telephone Company - Northern Division 95-0571-T-42T Artesian Water Company, Inc. 90 10 Artesian Water Company, Inc. 06 158 Aqua Illinois Consolidated Water Divisions and Consolidated Sewer Divisions 11-0436 Aqua Illinois Hawthorn Woods Wastewater Division 07 0620/07 0621/08 0067 Aqua Illinois Hawthorn Woods Water Division 07 0620/07 0621/08 0067 Aqua Illinois Kankakee Water Division 10-0194 Aqua Illinois Kankakee Water Division 14-0419

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Page 121 of 247 Exhibit Walker-Direct-1 Page 3 of 6

Aqua Illinois Vermilion Division 07 0620/07 0621/08 0067 Aqua Illinois Willowbrook Wastewater Division 07 0620/07 0621/08 0067 Aqua Illinois Willowbrook Water Division 07 0620/07 0621/08 0067 Aqua Pennsylvania Wastewater Inc A-2016-2580061 Aqua Pennsylvania Wastewater Inc A-2017-2605434 Aqua Pennsylvania Wastewater Inc A-2018-3001582 Aqua Pennsylvania Wastewater Inc A-2019-3008491 Aqua Pennsylvania Wastewater Inc A-2019-3009052 Aqua Pennsylvania Wastewater Inc A-2019-3009052 Aqua Virginia - Alpha Water Corporation Pue-2009-00059 Aqua Virginia - Blue Ridge Utility Company, Inc. Pue-2009-00059 Aqua Virginia - Caroline Utilities, Inc. (Wastewater) Pue-2009-00059 Aqua Virginia - Caroline Utilities, Inc. (Water) Pue-2009-00059 Aqua Virginia - Earlysville Forest Water Company Pue-2009-00059 Aqua Virginia - Heritage Homes of Virginia Pue-2009-00059 Aqua Virginia - Indian River Water Company Pue-2009-00059 Aqua Virginia - James River Service Corp. Pue-2009-00059 Aqua Virginia - Lake Holiday Utilities, Inc. (Wastewater) Pue-2009-00059 Aqua Virginia - Lake Holiday Utilities, Inc. (Water) Pue-2009-00059 Aqua Virginia - Lake Monticello Services Co. (Wastewater) Pue-2009-00059 Aqua Virginia - Lake Monticello Services Co. (Water) Pue-2009-00059 Aqua Virginia - Lake Shawnee Pue-2009-00059 Aqua Virginia - Land'or Utility Company (Wastewater) Pue-2009-00059 Aqua Virginia - Land'or Utility Company (Water) Pue-2009-00059 Aqua Virginia - Mountainview Water Company, Inc. Pue-2009-00059 Aqua Virginia - Powhatan Water Works, Inc. Pue-2009-00059 Aqua Virginia - Rainbow Forest Water Corporation Pue-2009-00059 Aqua Virginia - Shawnee Land Pue-2009-00059 Aqua Virginia - Sydnor Water Corporation Pue-2009-00059 Aqua Virginia - Water Distributors, Inc. Pue-2009-00059 Berkshire Gas Company 18-40 Borough of Hanover R-2009-2106908 Borough of Hanover R-2012-2311725 Borough of Hanover R-2014-242830 Chaparral City Water Company W 02113a 04 0616 California-American Water Company CIVCV156413

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Page 122 of 247 Exhibit Walker-Direct-1 Page 4 of 6

Connecticut-American Water Company 99-08-32 Connecticut Water Company 06 07 08 Citizens Utilities Company Colorado Gas Division - Citizens Utilities Company Vermont Electric Division 5426 Citizens Utilities Home Water Company R 901664 Citizens Utilities Water Company of Pennsylvania R 901663 City of Bethlehem - Bureau of Water R-00984375 City of Bethlehem - Bureau of Water R 00072492 City of Bethlehem - Bureau of Water R-2013-2390244 City of Dubois – Bureau of Water R-2013-2350509 City of Dubois – Bureau of Water R-2016-2554150 City of Lancaster Sewer Fund R-00005109 City of Lancaster Sewer Fund R-00049862 City of Lancaster Sewer Fund R-2012-2310366 City of Lancaster Sewer Fund R-2019-3010955 City of Lancaster Sewer Fund R-2019-3010955 City of Lancaster Water Fund R-00984567 City of Lancaster Water Fund R-00016114 City of Lancaster Water Fund R 00051167 City of Lancaster Water Fund R-2010-2179103 City of Lancaster Water Fund R-2014-2418872 Coastland Corporation 15-cvs-216 Consumers Pennsylvania Water Company Roaring Creek Division R-00973869 Consumers Pennsylvania Water Company Shenango Valley Division R-00973972 Country Knolls Water Works, Inc. 90 W 0458 East Resources, Inc. - West Virginia Utility 06 0445 G 42T Elizabethtown Water Company WR06030257 Forest Park, Inc. 19-W-0168 & 19-W-0269 Hampton Water Works Company DW 99-057 Hidden Valley Utility Services, LP R-2018-3001306 Hidden Valley Utility Services, LP R-2018-3001307 Illinois American Water Company 16-0093 Indian Rock Water Company R-911971 Indiana Natural Gas Corporation 38891

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Page 123 of 247 Exhibit Walker-Direct-1 Page 5 of 6

Jamaica Water Supply Company - Kane Borough Authority A-2019-3014248 Kentucky American Water Company, Inc. 2007 00134 Middlesex Water Company WR 89030266J Millcreek Township Water Authority 55 198 Y 00021 11 Missouri-American Water Company WR 2000-281 Missouri-American Water Company SR 2000-282 Mount Holly Water Company WR06030257 New Jersey American Water Company WR 89080702J New Jersey American Water Company WR 90090950J New Jersey American Water Company WR 03070511 New Jersey American Water Company WR-06030257 New Jersey American Water Company WR08010020 New Jersey American Water Company WR10040260 New Jersey American Water Company WR11070460 New Jersey American Water Company WR15010035 New Jersey American Water Company WR17090985 New Jersey American Water Company WR19121516 New Jersey Natural Gas Company GR19030420 Newtown Artesian Water Company R-911977 Newtown Artesian Water Company R-00943157 Newtown Artesian Water Company R-2009-2117550 Newtown Artesian Water Company R-2011-2230259 Newtown Artesian Water Company R-2017-2624240 Newtown Artesian Water Company R-2019-3006904 North Maine Utilities 14-0396 Northern Indiana Fuel & Light Company 38770 Oklahoma Natural Gas Company PUD-940000477 Palmetto Wastewater Reclamation, LLC 2018-82-S Pennichuck Water Works, Inc. DW 04 048 Pennichuck Water Works, Inc. DW 06 073 Pennichuck Water Works, Inc. DW 08 073 Pennsylvania Gas & Water Company (Gas) R-891261 Pennsylvania Gas & Water Co. (Water) R 901726 Pennsylvania Gas & Water Co. (Water) R-911966 Pennsylvania Gas & Water Co. (Water) R-22404 Pennsylvania Gas & Water Co. (Water) R-00922482 Pennsylvania Gas & Water Co. (Water) R-00932667 Public Service Company of North Carolina, Inc. G-5, Sub 565

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Page 124 of 247 Exhibit Walker-Direct-1 Page 6 of 6

Public Service Electric and Gas Company ER181010029 Public Service Electric and Gas Company GR18010030 Presque Isle Harbor Water Company U-9702 Sierra Pacific Power Company d/b/a NV Energy 19-06002 St. Louis County Water Company WR-2000-844 Suez Water Delaware, Inc. 19-0615 Suez Water New Jersey, Inc. WR18050593 Suez Water Owego-Nichols, Inc. 17-W-0528 Suez Water Pennsylvania, Inc. R-2018-3000834 Suez Water Pennsylvania, Inc. A-2018-3003519 Suez Water Pennsylvania, Inc. A-2018-3003517 Suez Water Rhode Island, Inc. Docket No. 4800 Suez Water Owego-Nichols, Inc. 19-W-0168 & 19-W-0269 Suez Water New York, Inc. 19-W-0168 & 19-W-0269 Suez Westchester, Inc. 19-W-0168 & 19-W-0269 Town of North East Water Fund 9190 Township of Exeter A-2018-3004933 United Water New Rochelle W-95-W-1168 United Water Toms River WR-95050219 Valley Water Systems, Inc. 06 10 07 Virginia American Water Company PUR-2018-00175 West Virginia-American Water Company 15-0676-W-42T West Virginia-American Water Company 15-0675-S-42T Wilmington Suburban Water Corporation 94-149 York Water Company R-901813 York Water Company R-922168 York Water Company R-943053 York Water Company R-963619 York Water Company R-994605 York Water Company R-00016236 Young Brothers, LLC 2019-0117

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Page 125 of 247 EXHIBIT WALKER-DIRECT- 2

Page 126 of 247 Exhibit Walker-Direct-2

NEVADA POWER COMPANY D/B/A NV ENERGY LAS VEGAS, NEVADA

TO ACCOMPANY THE

DIRECT TESTIMONY

SUPPORTING

EXHIBIT WALKER-DIRECT-2

FOR LEAD-LAG STUDY FOR DETERMINATION OF CASH WORKING CAPITAL

APRIL 2020

Prepared by: GANNETT FLEMING VALUATION AND RATE CONSULTANTS, LLC

Valley Forge, Pennsylvania

Page 127 of 247 Exhibit Walker-Direct-2 Page 1 of 30

Nevada Power Company d/b/a NV Energy Index to Exhibit Walker-Direct-2 Lead-Lag Study For the Twelve Months Ended December 31, 2019

Page Number in Schedule Schedule Subject Attachment HW-1 Reference

Index to Exhibit Walker-Direct-2 1 Revenue Lag Days & Expense Lead Days Summary 2 Revenue Lag Days 3 I Coal Lead Days 5 II Diesel Oil Lead Days 6 III Natural Gas Lead Days 7 IV Purchased Power Lead Days 8 V Goods and Services - Nevada Lead Days 9 VI Labor Lead Days 15 VII Mill Tax Lead Days 16 Vlll Possessory Interest Tax Moapa Lead Days 17 lX(a) Possessory Interest Tax Navajo Lead Days 18 lX(b) Nevada Use Tax on P Card Lead Days 19 X Property Tax - AZ Lead Days 20 Xl Unemployment Tax Lead Days 21 XII Nevada Modified Business Tax Lead Days 22 Xlll FICA Lead Days 23 XlV Franchise Tax Nevada Counties Lead Days 24 XV Federal Income Tax Lead Days 25 XVl Long-term Debt Lead Days 26 XVll Deposits Lead Days 27 XVlll Nevada Commerce Tax Lead Days 28 XIX Leases Lead Days 29 XX

Page 128 of 247 Exhibit Walker-Direct-2 Page 2 of 30

Nevada Power Company d/b/a NV Energy Revenue Lag / Expense Lead Summary January 1, 2019 - December 31,2019

Nevada Power 2019 Description Lag Days Schedule Revenue 37.47 I

Coal (1) - II Diesel Oil (1) - III Natural Gas 40.00 IV Purchased Power 38.36 V Goods and Services - Nevada 35.85 VI Labor 10.45 VII Mill Tax 145.58 Vlll Possessory Interest Tax Moapa 45.32 lX(a) Possessory Interest Tax Navajo 214.33 lX(b) Nevada Use Tax on P Card 15.27 X Property Tax - AZ 214.33 Xl Unemployment Tax 76.38 XII Nevada Modified Business Tax 76.18 Xlll FICA 11.00 XlV Franchise Tax Nevada Counties 372.33 XV Federal Income Tax 37.00 XVl Long-term Debt 90.00 XVll Deposits 105.00 XVlll Nevada Commerce Tax 225.61 XIX Leases 12.11 XX

Average 85.84 Count 21

(1) Coal and Diesel Oil historical costs are included but no Lag is calculated as there are no costs going forward.

Page 129 of 247 Exhibit Walker-Direct-2 Page 3 of 30

Nevada Power Company d/b/a NV Energy Schedule I Revenue Lag Days Lead Lag Study January 1, 2019 - December 31,2019

Total Recorded Rev Total Dollar Days Grand Total $ 2,045,268,762 $ 76,632,544,412 R/S Count: 104 Total Lag Days: 37.47 Activity Total Total Midpoint Total Bill Payment Recorded Code Rate Schedule Dollar Days ARAPPL Calculation Lag Days Lag Lag Revenues Dollar Days R200 R15-RS 372,702.05 8,816.97 15.21 57.48 18.67 38.81 11,008.21 $ 632,744 R213 R15-RS-NMRG 77,983.61 1,340.56 15.21 73.38 39.83 33.55 1,539.63 112,979 R215 R15-ORS-TOU-OptA-EVRR ------R247 R15-RS-AB405 T2 308,049.56 12,059.05 15.21 40.75 10.05 30.70 11,476.69 467,714 R248 R15-RS-AB405 T3 5,422.93 176.85 15.21 45.87 13.87 32.01 194.25 8,911 R271 R15-ORS-TOU AB405 T2 19,349.99 655.56 15.21 44.73 12.08 32.64 384.90 17,215 R274 R15-ORS-TOU EVRR AB4 15,261.45 509.23 15.21 45.18 18.16 27.02 371.41 16,780 R334 R15-ORS-TOU ------R340 R15-ORS-TOU NMR-G 4,148.59 108.39 15.21 53.48 27.93 25.55 121.32 6,489 R347 R15-ORS-TOU EVRR AB4 10,988.05 314.07 15.21 50.19 17.09 33.10 587.21 29,475 X051 RS 4,202,557.09 189,379.40 15.21 37.40 1.34 36.06 5,312,905.83 198,700,225 X052 ORS -OPT A 430,378.39 23,957.92 15.21 33.17 4.07 29.10 32,264.74 1,070,294 X053 ORS -OPT A HEV 280,935.38 18,587.52 15.21 30.32 4.29 26.03 17,730.72 537,640 X054 ORS -OPT B 39,040.21 1,848.31 15.21 36.33 4.91 31.42 1,961.87 71,276 X055 ORS -OPT B HEV 211,442.44 9,445.07 15.21 37.59 5.58 32.02 9,766.21 367,159 X056 RM 534,793.22 20,852.33 15.21 40.86 4.09 36.77 23,907.14 976,727 X058 LRS 61,595.74 3,007.36 15.21 35.69 3.88 31.81 3,027.75 108,060 X060 ORM-TOU-OPTA-HEV 250,963.54 11,024.03 15.21 37.97 3.89 34.08 11,207.77 425,598 X061 ORM-TOU-OPTB-HEV 123,335.63 6,447.34 15.21 34.34 3.91 30.43 6,455.26 221,661 X062 RS-Flexpay 331,658.80 18,830.42 15.21 32.82 6.20 26.62 797,636.21 26,179,425 X063 RM-Flexpay 243,225.92 12,718.16 15.21 34.33 6.66 27.67 717,683.38 24,639,961 X065 RS-NMRG 4,864,987.46 253,558.44 15.21 34.40 4.07 30.33 15,868,459.38 545,798,551 X066 ORS-TOU-OptA-NMRG 1,936,751.14 143,810.35 15.21 28.68 4.37 24.31 326,517.66 9,363,133 X067 ORS-TOU-OptA-EVRR-NM 833,293.21 66,234.58 15.21 27.79 4.40 23.39 93,586.64 2,600,705 X068 ORS-TOU-OptB-NMRG 322,285.39 15,253.41 15.21 36.34 4.07 32.27 14,387.46 522,798 X069 ORS-TOU-OptB-EVRR-NM 236,601.29 12,921.15 15.21 33.52 3.85 29.67 12,813.12 429,489 X070 RM-NMRG 784,133.47 49,572.14 15.21 31.03 4.69 26.34 95,547.73 2,964,498 X075 LRS-NMRG 945,608.60 46,038.83 15.21 35.75 5.00 30.75 42,844.57 1,531,595 X080 RS-NEM 3,113,029.88 139,791.35 15.21 37.48 4.47 33.00 340,871.94 12,775,011 X081 RS-NEM-TOU 16,666.11 1,895.72 15.21 24.00 4.60 19.40 1,727.03 41,448 X082 RS-NEM-TOU-EVRR 40,791.70 2,690.89 15.21 30.37 4.51 25.86 2,712.01 82,357 X083 RM-NEM 112,215.31 3,072.17 15.21 51.73 4.20 47.53 2,787.54 144,213 X093 ORS-TOU Option A-HEV 7,661,291.08 394,276.21 15.21 34.64 4.59 30.05 1,050,555.89 36,390,849 X094 ORS-TOU Option B 4,511,087.48 285,253.36 15.21 31.02 4.34 26.69 556,455.98 17,262,740 X095 ORS-TOU Option B-HEV 4,600,350.22 277,691.86 15.21 31.77 4.14 27.63 564,385.70 17,933,197 X096 ORM-TOU Option B 285,396.87 17,678.26 15.21 31.35 4.11 27.24 17,890.39 560,904 X100 RS Residential Service 11,160,701.30 503,972.05 15.21 37.35 3.97 33.38 844,854,919.77 31,558,550,194 X102 RM- Residential Multi Fami 4,156,966.42 172,713.27 15.21 39.28 4.04 35.24 249,972,231.47 9,818,142,395 X103 RS-L Large Residential Ser 63,123,599.94 2,972,144.91 15.21 36.45 3.87 32.57 3,990,281.04 145,432,706 X104 ORS-TOU Option A 7,533,632.09 450,135.64 15.21 31.94 4.13 27.82 3,096,040.86 98,902,076 X106 ORM-TOU Option A 1,392,609.54 83,581.64 15.21 31.87 3.84 28.03 119,955.87 3,822,994 Y001 RS-AB405 T2 2,450,924.20 102,221.91 15.21 39.18 5.04 34.14 3,125,376.99 122,467,394 Y002 RS-AB405 T3 89,728.12 4,072.71 15.21 37.24 7.24 30.00 96,036.53 3,576,389 Y004 ORS -OPT A T2 125,583.04 6,029.78 15.21 36.04 6.55 29.49 14,435.87 520,203 Y005 ORS -OPT A T3 3,497.40 139.62 15.21 40.26 6.59 33.67 115.55 4,652 Y007 ORS -OPT A HEV T2 ------Y010 ORS -OPT B T2 69,238.50 2,989.03 15.21 38.37 6.04 32.33 2,795.19 107,259 Y013 ORS -OPT B HEV T2 104,927.20 3,379.86 15.21 46.25 6.42 39.83 3,361.08 155,461 Y016 RM-AB405 T2 ------Y017 RM-AB405 T3 ------Y025 ORS-TOU AB405 T2 ------Y026 ORS-TOU AB405 T3 ------Y028 ORS-TOU EVRR AB405 T2 ------Y029 ORS-TOU EVRR AB405 T3 9,875.30 236.32 15.21 57.00 12.77 44.22 297.33 16,947 Y100 ORS-TOU 2,337,003.86 126,748.57 15.21 33.65 4.85 28.80 351,551.68 11,828,463 Y101 ORS-TOU EVRR 5,712,283.08 260,339.41 15.21 37.15 5.22 31.93 1,042,800.54 38,740,050 Y102 ORM-TOU 383,719.52 16,842.25 15.21 37.99 4.82 33.18 43,928.19 1,668,897 Y103 ORM-TOU EVRR 550,287.10 20,284.70 15.21 42.34 4.47 37.86 37,033.35 1,567,863 Y105 OLRS-TOU EVRR 302,449.98 11,294.59 15.21 41.99 9.59 32.40 11,248.85 472,301 Y106 ORS-TOU NMR-G 120,722.61 9,238.32 15.21 28.28 4.59 23.69 10,266.92 290,307 Y107 ORS-TOU NMR-G EVRR 675,604.37 33,667.56 15.21 35.28 5.58 29.70 64,234.07 2,265,873 Y112 ORS-TOU NMR-405 302,996.75 11,214.60 15.21 42.23 7.88 34.34 9,105.20 384,480 Y113 ORS-TOU EVRR AB405 291,987.57 12,144.42 15.21 39.25 6.02 33.24 21,671.84 850,647 X110 GS General Service 4,775,353.43 223,437.66 15.21 36.58 4.10 32.48 64,941,539.06 2,375,595,865 X112 OGS-TOU-Op Gen Svc TO 5,769,973.24 279,827.29 15.21 35.83 4.40 31.43 2,276,289.79 81,555,137

Page 130 of 247 Exhibit Walker-Direct-2 Page 4 of 30

X113 OGS-TOU-HEV-(Hybrid Ele 5,661.19 266.11 15.21 36.48 4.89 31.59 266.02 9,705 X120 LGS-1 Lg General Service 71,216,758.48 3,397,097.15 15.21 36.17 4.12 32.05 365,827,600.96 13,232,839,414 X121 SSR-3 LGS-1 Standby 2,030,232.14 110,062.02 15.21 33.65 5.76 27.90 106,447.03 3,582,431 X122 OLGS-1-TOU-Opt LGS-1-T 88,250,630.23 3,346,252.63 15.21 41.58 9.31 32.27 6,450,921.04 268,237,724 X190 GS-NEM 278,940.16 11,232.23 15.21 40.04 7.94 32.11 10,641.63 426,115 X193 GS-NMRG 1,954,339.36 81,641.19 15.21 39.15 6.31 32.84 143,522.03 5,618,383 X196 GS 35,464.81 1,295.64 15.21 42.58 5.08 37.51 1,327.84 56,540 Y088 GS-AB405 T2 13,861.99 822.23 15.21 32.07 5.05 27.01 775.81 24,878 Y701 LGS-1 AB405 T3 82,134.24 602.44 15.21 151.54 94.30 57.24 1,816.20 275,235 X310 GS General Service-DO 43,917.05 1,791.04 15.21 39.73 5.78 33.95 3,865.09 153,555 X320 LGS-1 Lg General Service- 1,180,924.02 53,641.87 15.21 37.22 5.24 31.99 136,389.72 5,076,876 X124 LGS-2-P---Primary 142,219,157.94 5,823,536.13 15.21 39.63 5.38 34.24 5,762,859.60 228,380,839 X125 LGS-2-S---Secondary 718,823,568.53 31,793,699.66 15.21 37.82 4.74 33.08 203,750,060.58 7,705,282,759 X127 LGS-3---Primary 1,595,872,488.23 67,439,241.78 15.21 38.87 5.05 33.82 110,319,117.58 4,288,345,596 X128 LGS-3-S---Secondary 779,180,940.10 34,427,395.85 15.21 37.84 4.92 32.92 66,976,509.15 2,534,452,569 X129 LGS-3-T---Transmission 307,510,925.78 17,641,312.57 15.21 32.64 6.55 26.09 16,345,210.55 533,501,599 X136 OLGS-3P-HLF 393,680,760.57 17,858,246.49 15.21 37.25 5.69 31.56 17,221,998.45 641,572,718 X137 LSR-2 (LGS-3P) Lg Standb 2,040,842.32 127,051.52 15.21 31.27 5.48 25.79 1,882,081.94 58,855,415 X138 LSR-2(LGS-3T) Lg Standby 194,749,796.65 6,851,518.06 15.21 43.63 8.07 35.57 7,137,134.18 311,412,159 X143 LSR-1(LGS-2T) 9,016,162.51 209,177.10 15.21 58.31 13.95 44.36 217,422.29 12,678,186 Y920 LGS-2S EVCCR 6,460,512.80 267,021.30 15.21 39.40 6.47 32.93 282,359.48 11,125,833 X324 LGS-2-P--Primary--DO 3,805,083.34 167,554.86 15.21 37.92 4.99 32.93 166,504.19 6,313,474 X325 LGS-2-S--Secondary--DO 23,055,317.79 1,075,849.92 15.21 36.64 4.46 32.18 1,439,305.55 52,733,561 X327 LGS-3-P--Primary-DO 256,181,646.21 12,670,212.66 15.21 35.43 5.51 29.92 14,679,485.28 520,058,050 X328 LGS-3-S--Secondary--DO 30,400,918.52 1,413,846.41 15.21 36.71 4.53 32.18 1,937,454.21 71,125,128 X329 LGS-3-T--Transmission--DO 121,669,456.73 5,194,526.05 15.21 38.63 5.70 32.93 4,746,258.46 183,352,532 X350 LGS-P-X Ex Lg LGS Prima 127,841,346.37 5,512,936.11 15.21 38.40 5.39 33.01 5,262,597.20 202,071,485 X351 LGS-S-X Ex Lg LGS Secon 2,533,445.90 121,291.89 15.21 36.10 4.32 31.78 131,756.24 4,755,810 X352 LGS-T-X Ex Lg LGS Trans- 54,655,030.18 2,336,332.76 15.21 38.60 5.43 33.17 2,140,528.29 82,628,344 X163 LGS-WP-2--Primary 22,178,007.11 970,092.17 15.21 38.07 3.61 34.46 975,053.38 37,120,366 X164 LGS-WP-2-Secondary 24,221,286.03 1,070,025.01 15.21 37.84 3.72 34.13 555,687.87 21,029,741 X166 LGS-WP-3--Primary 24,502,072.27 1,019,354.63 15.21 39.25 5.42 33.82 962,018.05 37,754,573 X167 LGS-WP-3--Secondary 6,148,099.73 268,870.49 15.21 38.07 3.62 34.46 264,618.03 10,075,260 X364 LGS-S-WP2-Secondary-DO 1,177,622.79 48,038.29 15.21 39.72 5.72 34.01 47,266.00 1,877,528 X365 LTS-T-WP2-Transmission- 682,483.26 28,052.34 15.21 39.54 5.48 34.05 28,054.25 1,109,188 X366 LGS-P-WP3-Primary-DO 11,161,325.68 448,859.08 15.21 40.07 5.59 34.48 448,883.23 17,988,692 X367 LGS-S-WP3-Secondary-DO 4,046,862.06 162,974.32 15.21 40.04 5.71 34.33 162,054.53 6,488,602 X368 LGS-T-WP3-Transmission- 3,599,728.96 148,080.32 15.21 39.52 5.47 34.05 148,197.81 5,856,427 X181 SL-St/Traffic Lting-Metered 29,369,397.91 1,101,088.37 15.21 41.88 8.07 33.81 8,557,182.72 358,386,749

Page 131 of 247 Exhibit Walker-Direct-2 Page 5 of 30

Nevada Power Company d/b/a NV Energy Schedule II Coal - Summary of Expense Lead Days Lead Lag Study January 1, 2019 - December 31,2019

Payment Amount Dollar Days

Coal (Navajo) 42,062,394.53 (1) -

Rail Car Lease - - Rail Car Maintenance - - Freight (Rail) - - Coal Transportation - -

Total $ 42,062,394.53 $ -

Lag Days - Mid Month 15.21 Total Lag Days

(1) Coal historical costs are included but no Lag is calculated as there are no costs going forward.

Page 132 of 247 Exhibit Walker-Direct-2 Page 6 of 30

Nevada Power Company d/b/a NV Energy Schedule III Diesel Oil Lead Lag Study January 1, 2019 - December 31,2019

Total Amount Paid: $ 508,810.27 (1) Total Dollar Days: Lag Days: - Mid Month: Total Lag Days:

Supplier Name Invoice Number End of Period Amount Paid Date Paid Payment End of Period Lag Days Dollar Days Salt River Project 6000061410 04/30/19 60,949.21 05/23/19 19143 19120 23 $ 1,401,831.83 Salt River Project 6000065447 08/31/19 40,823.24 10/04/19 19277 19243 34 $ 1,387,990.16 Salt River Project 6000059791 02/28/19 88,517.65 04/04/19 19094 19059 35 $ 3,098,117.75 Salt River Project 6000059009 01/31/19 8,690.41 03/11/19 19070 19031 39 $ 338,925.99 Salt River Project 6000064486 07/31/19 22,184.72 09/05/19 19248 19212 36 $ 798,649.92 Salt River Project 6000063258 06/30/19 17,939.88 07/26/19 19207 19181 26 $ 466,436.88 Salt River Project 6000062542 05/31/19 175,682.68 07/05/19 19186 19151 35 $ 6,148,893.80 Salt River Project 6000057556 11/30/18 57,906.18 01/14/19 19014 18334 45 $ 2,605,778.10 Salt River Project 6000068275 11/30/19 36,116.30 12/31/19 19365 19334 31 $ 1,119,605.30

(1) Diesel Oil historical costs are included but no Lag is calculated as there are no costs going forward.

Page 133 of 247 Exhibit Walker-Direct-2 Page 7 of 30

Nevada Power Company d/b/a NV Energy Schedule IV Natural Gas - Summary of Expense Lead Days Lead Lag Study January 1, 2019 - December 31,2019

Payment Amount Dollar Days Natural Gas Purchases 396,703,542 40.48 16,060,521,158 Hedge Contract Settlements - - - Transportation 56,430,059 36.59 2,064,723,440

Total 453,133,601 18,125,244,598

Lag Days 40.00

Page 134 of 247 Exhibit Walker-Direct-2 Page 8 of 30

Nevada Power Company d/b/a NV Energy Schedule V Purchased Power - Summary of Expense Lead Days Lead Lag Study January 1, 2019 - December 31,2019

Payment Amount Dollar Days Purchased Power $ 529,832,787.79 $ 12,403,660,302.57

Prepaid Transmission - -

Energy Imbalance Market (EIM) 13,882,148.28 185,004,775.59

Steam from Other Resources 129,893.16 4,265,366.29

Total $ 543,844,829.23 $ 12,592,930,444.45

Lag Days 23.16 Mid Month 15.21 Total Lag Days 38.36

Page 135 of 247 Exhibit Walker-Direct-2 Page 9 of 30

Nevada Power Company d/b/a NV Energy Schedule VI Goods and Services Lead Lag Study January 1, 2019 - December 31, 2019 Total Amount Paid Total Dollar Days $ 1,708,873.71 $ 61,268,114.18

Total Lag Days: 35.85

Service Service Invoice Payment Lag Unit Voucher Vendor Name Acctg Date Amount Paid Dollar Days Date 1 Date 2 Date Date Days APNPC 00869705 0000061581 Brady Industries LLC 1/18/2019 1/18/2019 1/8/2019 1/17/2019 2/6/2019 19 $ 2,317.13 $ 44,025.47 APNPC 00870357 0000010900 Ideal Supply Co Inc 11/20/2018 11/20/2018 1/16/2019 1/25/2019 2/15/2019 87 171.08 14,883.96 APNPC 00868931 0000068409 BrandSafway Services LLC 12/19/2018 12/19/2018 12/28/2018 1/9/2019 1/24/2019 36 1,020.10 36,723.60 APNPC 00871445 0000010080 Kiesub Electronics 1/28/2019 1/28/2019 1/28/2019 1/30/2019 2/26/2019 29 8.76 254.04 APNPC 00869361 0000068638 Limpio Pro LLC 12/1/2018 12/31/2018 1/3/2019 1/11/2019 1/31/2019 46 2,671.11 122,871.06 APNPC 00870493 0000062513 T and D PowerSkills LLC 12/20/2018 12/20/2018 12/20/2018 1/23/2019 1/23/2019 34 31,648.44 1,076,046.96 APNPC 00869279 0000061369 US Security Associates Inc 12/1/2018 12/31/2018 12/31/2018 1/16/2019 1/29/2019 44 887.43 39,046.92 APNPC 00869312 0000011750 Las Vegas Paving Corporation 12/18/2018 12/18/2018 12/18/2018 1/22/2019 1/23/2019 36 180.50 6,498.00 APNPC 00869503 0000016428 Republic Services 1/1/2019 1/31/2019 12/31/2018 1/14/2019 1/15/2019 (1) 296.17 (296.17) APNPC 00868165 0000010006 H J Arnett Industries LLC 12/28/2018 12/28/2018 12/28/2018 1/11/2019 1/25/2019 28 156.58 4,384.24 APNPC 00868238 0000046419 Metrostudy 10/1/2018 9/30/2019 10/24/2018 1/3/2019 1/4/2019 (87) 18,000.00 (1,566,000.00) APNPC 00869035 0000068638 Limpio Pro LLC 12/1/2018 12/31/2018 1/3/2019 1/9/2019 1/31/2019 46 1,641.00 75,486.00 APNPC 00869310 0000010771 Lin-Air 12/4/2018 12/4/2018 12/4/2018 1/17/2019 1/18/2019 45 343.00 15,435.00 APNPC 00869008 0000013877 City of LA Dept of Water & Pwr 11/1/2018 11/30/2018 12/31/2018 1/24/2019 1/30/2019 76 98,908.78 7,467,612.89 APNPC 00868260 0000011021 Silver State Court Reporters 12/20/2018 12/20/2018 12/27/2018 1/11/2019 1/11/2019 22 215.00 4,730.00 APNPC 00867950 0000054300 National Barricade Company 12/21/2018 12/21/2018 12/23/2018 1/11/2019 1/18/2019 28 193.05 5,405.40 APNPC 00867788 0000013826 OATI Inc 1/1/2019 1/31/2019 1/1/2019 1/2/2019 1/30/2019 14 1,661.07 23,254.98 APNPC 00869185 0000026796 Turbine Resources Inc 12/21/2018 12/21/2018 12/21/2018 1/10/2019 1/17/2019 27 19,838.33 535,634.91 APNPC 00869899 0000014355 Fiserv 12/1/2018 12/31/2018 1/15/2019 1/17/2019 2/13/2019 59 7,661.93 452,053.87 APNPC 00868411 0000058591 Western Elite 12/27/2018 12/27/2018 12/29/2018 1/7/2019 1/25/2019 29 50.00 1,450.00 APNPC 00868882 0000068409 BrandSafway Services LLC 10/28/2018 11/3/2018 11/21/2018 1/8/2019 1/8/2019 69 1,261.94 87,073.86 APNPC 00870069 0000059125 ATM Electric 1/16/2019 1/16/2019 1/16/2019 1/18/2019 2/15/2019 30 388.80 11,664.00 APNPC 00867803 0000054300 National Barricade Company 12/11/2018 12/11/2018 12/16/2018 1/11/2019 1/14/2019 34 55.00 1,870.00 APNPC 00868160 0000059125 ATM Electric 9/12/2018 9/12/2018 10/19/2018 1/4/2019 1/7/2019 117 328.47 38,430.99 APNPC 00869719 0000064980 SB Landscaping 1/9/2019 1/9/2019 1/9/2019 1/22/2019 2/7/2019 29 110.00 3,190.00 APNPC 00869074 0000057924 US Payments LLC 12/1/2018 12/31/2018 12/31/2018 1/13/2019 1/30/2019 45 13,875.68 624,405.60 APNPC 00868970 0000012833 Southwest Gas Corporation 11/30/2018 1/2/2019 1/4/2019 1/11/2019 1/14/2019 29 427.50 12,183.75 APNPC 00870983 0000038831 Cutsforth Inc 1/23/2019 1/23/2019 1/23/2019 1/25/2019 2/22/2019 30 790.18 23,705.40 APNPC 00868658 0000067185 Cintas Corporation No 2 1/2/2019 1/2/2019 1/2/2019 1/9/2019 1/31/2019 29 5.00 145.00 APNPC 00869977 0000059125 ATM Electric 1/16/2019 1/16/2019 1/16/2019 1/18/2019 2/15/2019 30 266.96 8,008.80 APNPC 00869791 0000013857 Southern Nev Health District 1/1/2019 12/31/2019 1/1/2019 1/15/2019 1/16/2019 (167) 227.00 (37,909.00) APNPC 00868021 0000012190 Praxair Distribution Inc 11/20/2018 12/20/2018 12/21/2018 1/9/2019 1/17/2019 43 461.16 19,829.88 APNPC 00875130 0000030669 Aargon Agency Inc 2/15/2019 2/15/2019 2/15/2019 2/25/2019 3/14/2019 27 6,304.78 170,229.06 APNPC 00875601 0000013525 Reddy Ice 9/8/2018 9/8/2018 9/8/2018 2/28/2019 3/1/2019 174 24.93 4,337.82 APNPC 00874780 0000043392 Airgas Specialty Products Inc 2/18/2019 2/18/2019 2/19/2019 2/21/2019 3/21/2019 31 6,393.14 198,187.34 APNPC 00875131 0000054300 National Barricade Company 2/6/2019 2/6/2019 2/10/2019 2/27/2019 3/11/2019 33 134.68 4,444.44 APNPC 00871865 0000014827 Thatcher Company of 12/26/2018 12/26/2018 12/26/2018 2/1/2019 2/1/2019 37 11,737.93 434,303.41 APNPC 00874081 0000013525 Reddy Ice 12/15/2018 12/15/2018 12/15/2018 2/19/2019 2/20/2019 67 43.77 2,932.59 APNPC 00871091 0000062820 Tyndale Company 1/23/2019 1/23/2019 1/24/2019 2/1/2019 2/21/2019 29 81.33 2,358.57 APNPC 00871929 0000013826 OATI Inc 2/1/2019 2/28/2019 2/1/2019 2/1/2019 2/28/2019 14 806.34 10,885.59 APNPC 00872139 0000061581 Brady Industries LLC 1/28/2019 1/28/2019 1/29/2019 2/6/2019 2/27/2019 30 2,175.33 65,259.90 APNPC 00874422 0000013989 City of Henderson 1/11/2019 2/11/2019 2/12/2019 2/21/2019 2/27/2019 32 64.38 2,027.97 APNPC 00872556 0000065850 The W.W. Williams Company LLC 1/22/2019 1/22/2019 1/29/2019 2/20/2019 2/27/2019 36 285.00 10,260.00 APNPC 00873510 0000041359 Global Industrial Solutions 12/28/2018 12/28/2018 12/31/2018 2/12/2019 2/13/2019 47 13,411.26 630,329.22 APNPC 00875162 0000040121 Pacific Mechanical Supply 2/20/2019 2/20/2019 2/20/2019 2/23/2019 2/27/2019 7 (466.23) (3,263.61) APNPC 00874196 0000051089 S and S Supplies and Solutions 2/8/2019 2/8/2019 2/8/2019 2/21/2019 3/7/2019 27 49.83 1,345.41 APNPC 00872826 0000054300 National Barricade Company 10/20/2018 1/27/2019 1/27/2019 2/16/2019 2/25/2019 79 2,071.50 162,612.75 APNPC 00872313 0000010080 Kiesub Electronics 2/1/2019 2/1/2019 2/1/2019 2/7/2019 2/28/2019 27 5.99 161.73 APNPC 00872870 0000019008 Powmat Ltd 1/30/2019 1/30/2019 1/30/2019 2/7/2019 3/1/2019 30 12.99 389.70 APNPC 00874934 0000012580 Grainger 2/19/2019 2/19/2019 2/19/2019 2/22/2019 3/21/2019 30 28.55 856.50 APNPC 00872611 0000011021 Silver State Court Reporters 1/29/2019 1/29/2019 1/31/2019 2/12/2019 2/13/2019 15 317.00 4,755.00 APNPC 00872469 0000017616 ABC Fire and Cylinder Service 1/1/2019 1/31/2019 1/1/2019 2/5/2019 2/5/2019 20 1,762.81 35,256.20 APNPC 00872211 0000012580 Grainger 12/26/2018 1/24/2019 1/25/2019 2/4/2019 2/21/2019 43 4,200.38 178,516.15 APNPC 00874658 0000054300 National Barricade Company 1/31/2019 1/31/2019 2/3/2019 2/27/2019 3/4/2019 32 55.00 1,760.00 APNPC 00871291 0000010080 Kiesub Electronics 1/25/2019 1/25/2019 1/25/2019 2/4/2019 2/21/2019 27 560.94 15,145.38 APNPC 00872579 0000013198 Rhino's Turf Equipment Inc 1/10/2019 1/16/2019 1/25/2019 2/12/2019 2/22/2019 40 5.78 231.20 APNPC 00871776 0000035898 PW Power Systems Inc 1/25/2019 1/25/2019 1/25/2019 2/1/2019 2/22/2019 28 703.35 19,693.80 APNPC 00871780 0000014827 Thatcher Company of 12/12/2018 12/12/2018 12/12/2018 2/1/2019 2/1/2019 51 801.83 40,893.33 APNPC 00873678 0000012580 Grainger 2/8/2019 2/8/2019 2/8/2019 2/13/2019 3/7/2019 27 612.26 16,531.02 APNPC 00871326 0000065850 The W.W. Williams Company LLC 1/17/2019 1/17/2019 1/18/2019 2/4/2019 2/14/2019 28 85.00 2,380.00 APNPC 00873849 0000013525 Reddy Ice 11/27/2018 11/27/2018 11/27/2018 2/15/2019 2/15/2019 80 17.79 1,423.20 APNPC 00871932 0000010080 Kiesub Electronics 1/30/2019 1/30/2019 1/30/2019 2/1/2019 2/28/2019 29 33.28 965.12 APNPC 00874551 0000068409 BrandSafway Services LLC 1/21/2019 2/17/2019 1/31/2019 2/20/2019 2/28/2019 25 1,510.66 37,011.17 APNPC 00874896 0000065621 BSI Group America Inc 1/1/2019 12/31/2019 1/31/2019 2/22/2019 2/28/2019 (124) 400.00 (49,600.00) APNPC 00876473 0000056509 DXP Enterprises Inc 2/20/2019 2/20/2019 2/22/2019 3/5/2019 3/21/2019 29 99.59 2,888.11 APNPC 00879258 0000059125 ATM Electric 3/18/2019 3/18/2019 3/19/2019 3/27/2019 4/17/2019 30 161.74 4,852.20 APNPC 00878086 0000051138 On Target Pest Control 3/5/2019 3/5/2019 3/5/2019 3/14/2019 4/3/2019 29 500.00 14,500.00 APNPC 00877730 0000059076 Farwest Line Specialties LLC 12/4/2018 12/4/2018 12/4/2018 3/14/2019 3/15/2019 101 425.39 42,964.39 APNPC 00877111 0000013175 HD Electric Company 2/28/2019 2/28/2019 2/28/2019 3/9/2019 3/29/2019 29 164.68 4,775.72 APNPC 00879522 0000010085 Modular Services Co Inc 3/12/2019 3/12/2019 3/19/2019 3/31/2019 4/17/2019 36 71.25 2,565.00 APNPC 00879239 0000022272 Mobile Mini 3/9/2019 4/5/2019 3/9/2019 3/20/2019 4/8/2019 17 297.69 4,911.89 APNPC 00877789 0000033870 EDS Electronics Inc 3/1/2019 3/31/2019 3/20/2019 3/18/2019 4/19/2019 34 120.00 4,080.00 APNPC 00876184 0000058909 Senske 2/20/2019 2/20/2019 2/20/2019 3/1/2019 3/22/2019 30 206.66 6,199.80

Page 136 of 247 Exhibit Walker-Direct-2 Page 10 of 30

Nevada Power Company d/b/a NV Energy Schedule VI Goods and Services Lead Lag Study January 1, 2019 - December 31, 2019 Total Amount Paid Total Dollar Days $ 1,708,873.71 $ 61,268,114.18

Total Lag Days: 35.85

Service Service Invoice Payment Lag Unit Voucher Vendor Name Acctg Date Amount Paid Dollar Days Date 1 Date 2 Date Date Days APNPC 00878479 0000013169 General Cable Industries 3/8/2019 3/8/2019 3/8/2019 3/15/2019 3/18/2019 10 (196.93) (1,969.30) APNPC 00879132 0000012803 Ryan Mechanical Inc 2/2/2019 2/6/2019 3/14/2019 3/19/2019 4/11/2019 66 4,833.82 319,032.12 APNPC 00877747 0000062820 Tyndale Company 3/1/2019 3/1/2019 3/4/2019 3/13/2019 3/21/2019 20 (301.58) (6,031.60) APNPC 00879089 0000062820 Tyndale Company 3/14/2019 3/14/2019 3/15/2019 3/27/2019 4/11/2019 28 45.40 1,271.20 APNPC 00878902 0000036313 Uline Inc 2/18/2019 2/18/2019 2/18/2019 3/19/2019 3/20/2019 30 661.89 19,856.70 APNPC 00877361 0000013525 Reddy Ice 9/17/2018 9/17/2018 9/17/2018 3/11/2019 3/11/2019 175 28.92 5,061.00 APNPC 00875724 0000010080 Kiesub Electronics 2/6/2019 2/6/2019 2/6/2019 3/1/2019 3/7/2019 29 38.67 1,121.43 APNPC 00880524 0000054842 Select Services 3/1/2019 3/31/2019 3/14/2019 3/27/2019 4/12/2019 27 220.00 5,940.00 APNPC 00877216 0000036286 Las Vegas Presort LLC 2/3/2019 3/2/2019 3/2/2019 3/11/2019 4/1/2019 44 78.55 3,416.93 APNPC 00880513 0000012580 Grainger 2/28/2019 3/25/2019 3/25/2019 3/27/2019 4/23/2019 42 4,043.02 167,785.33 APNPC 00876910 0000068638 Limpio Pro LLC 2/1/2019 2/28/2019 3/1/2019 3/7/2019 3/28/2019 42 245.43 10,185.35 APNPC 00879483 0000062820 Tyndale Company 3/18/2019 3/18/2019 3/19/2019 3/26/2019 4/17/2019 30 112.04 3,361.20 APNPC 00879826 0000030791 Vortex Industries Inc 3/19/2019 3/19/2019 3/19/2019 3/22/2019 4/17/2019 29 658.00 19,082.00 APNPC 00876985 0000011521 Fajon Machining Inc 3/1/2019 3/1/2019 3/1/2019 3/7/2019 3/11/2019 10 (4.50) (45.00) APNPC 00876229 0000012190 Praxair Distribution Inc 2/21/2019 2/21/2019 2/21/2019 3/1/2019 3/21/2019 28 2,165.00 60,620.00 APNPC 00877794 0000058589 Prysmian Cables and Systems USA LL 1/25/2019 1/25/2019 3/11/2019 3/13/2019 3/21/2019 55 (360.93) (19,851.15) APNPC 00876267 0000012803 Ryan Mechanical Inc 2/14/2019 2/20/2019 2/25/2019 3/1/2019 3/26/2019 37 26,574.05 983,239.85 APNPC 00879584 0000017102 Safe Engineering 10/28/2018 10/27/2019 2/7/2019 3/29/2019 4/1/2019 (27) 2,500.00 (67,500.00) APNPC 00878564 0000056704 Kronos Incorporated 5/1/2019 4/30/2020 3/2/2019 3/19/2019 4/1/2019 (213) 1,417.26 (301,167.75) APNPC 00878092 0000065640 Sunbelt Rentals Inc 8/6/2018 8/6/2018 8/6/2018 3/14/2019 3/21/2019 227 (14.14) (3,209.78) APNPC 00878019 0000053126 Case M and I LLC 2/28/2019 2/28/2019 2/28/2019 3/12/2019 3/29/2019 29 21,639.18 627,536.22 APNPC 00878833 0000049697 Reliable Equipment and 1/29/2019 1/29/2019 3/6/2019 3/19/2019 4/5/2019 66 1,217.22 80,336.52 APNPC 00878649 0000013989 City of Henderson 2/5/2019 3/4/2019 3/5/2019 3/18/2019 3/20/2019 30 52.60 1,551.70 APNPC 00884916 0000054300 National Barricade Company 4/9/2019 4/9/2019 4/14/2019 4/29/2019 5/13/2019 34 288.00 9,792.00 APNPC 00883757 0000011209 Bank of New York Mellon 4/3/2019 4/2/2020 4/3/2019 4/16/2019 5/3/2019 (153) 6,800.00 (1,037,000.00) APNPC 00874878 0000066323 Ardmore Power Logistics LLC 2/21/2019 2/21/2019 2/21/2019 4/15/2019 4/16/2019 54 138.05 7,454.70 APNPC 00883994 0000067949 Precision Integrated 4/8/2019 4/8/2019 4/8/2019 4/17/2019 5/7/2019 29 3,647.40 105,774.60 APNPC 00883449 0000033870 EDS Electronics Inc 4/1/2019 4/30/2019 4/20/2019 4/18/2019 5/20/2019 35 120.00 4,140.00 APNPC 00882169 0000069053 McKesson Medical Surgical Inc 1/24/2019 1/24/2019 1/24/2019 4/5/2019 4/8/2019 74 12.16 899.84 APNPC 00883186 0000061260 Estuate Inc 2/17/2019 2/17/2019 2/17/2019 4/15/2019 4/15/2019 57 9,000.00 513,000.00 APNPC 00884595 0000040121 Pacific Mechanical Supply 2/15/2019 2/15/2019 2/15/2019 4/22/2019 4/22/2019 66 418.60 27,627.60 APNPC 00881408 0000013525 Reddy Ice 3/18/2019 3/18/2019 3/18/2019 4/2/2019 4/17/2019 30 31.09 932.70 APNPC 00882547 0000020779 J&J Enterprises Services Inc 3/31/2019 3/31/2019 3/31/2019 4/16/2019 4/29/2019 29 3,049.58 88,437.82 APNPC 00881466 0000065776 Vista Paint Corporation 3/29/2019 3/29/2019 3/29/2019 4/3/2019 4/26/2019 28 536.49 15,021.72 APNPC 00881032 0000023652 Active TeleSource 3/1/2019 3/15/2019 3/15/2019 4/4/2019 4/5/2019 28 48,249.65 1,350,990.20 APNPC 00884389 0000043536 Alternative Hose Inc 4/12/2019 4/12/2019 4/12/2019 4/29/2019 5/10/2019 28 33.75 945.00 APNPC 00884363 0000065640 Sunbelt Rentals Inc 3/19/2019 4/25/2019 4/15/2019 4/19/2019 5/14/2019 38 2,420.21 90,757.88 APNPC 00882681 0000020779 J&J Enterprises Services Inc 4/8/2019 4/8/2019 4/8/2019 4/16/2019 5/8/2019 30 275.00 8,250.00 APNPC 00884116 0000054300 National Barricade Company 4/2/2019 4/2/2019 4/7/2019 4/29/2019 5/6/2019 34 97.00 3,298.00 APNPC 00885271 0000013525 Reddy Ice 4/23/2019 4/23/2019 4/23/2019 4/29/2019 5/22/2019 29 159.05 4,612.45 APNPC 00884742 0000062820 Tyndale Company 4/18/2019 4/18/2019 4/19/2019 4/24/2019 5/16/2019 28 59.97 1,679.16 APNPC 00881075 0000012190 Praxair Distribution Inc 2/20/2019 3/20/2019 3/21/2019 4/2/2019 4/18/2019 43 488.76 21,016.68 APNPC 00883766 0000010028 AAA Air Filter Company Inc 3/28/2019 3/28/2019 3/28/2019 4/16/2019 4/25/2019 28 142.58 3,992.24 APNPC 00883804 0000068409 BrandSafway Services LLC 3/24/2019 3/30/2019 4/5/2019 4/17/2019 5/2/2019 36 755.20 27,187.20 APNPC 00882084 0000062820 Tyndale Company 2/11/2019 2/11/2019 2/11/2019 4/5/2019 4/9/2019 57 (1,731.57) (98,699.49) APNPC 00883966 0000035114 Switch 4/1/2019 4/30/2019 4/15/2019 4/25/2019 4/29/2019 14 5,575.00 75,262.50 APNPC 00883628 0000065640 Sunbelt Rentals Inc 2/12/2019 2/12/2019 2/13/2019 4/16/2019 4/16/2019 63 123.22 7,762.86 APNPC 00881464 0000011750 Las Vegas Paving Corporation 3/28/2019 3/28/2019 3/28/2019 4/10/2019 4/26/2019 29 102.53 2,973.37 APNPC 00881843 0000069053 McKesson Medical Surgical Inc 4/1/2019 4/1/2019 4/2/2019 4/4/2019 5/1/2019 30 69.73 2,091.90 APNPC 00880942 0000062820 Tyndale Company 3/26/2019 3/26/2019 3/27/2019 4/6/2019 4/25/2019 30 220.51 6,615.30 APNPC 00883453 0000062820 Tyndale Company 4/9/2019 4/9/2019 4/11/2019 4/16/2019 5/9/2019 30 409.29 12,278.70 APNPC 00882539 0000068409 BrandSafway Services LLC 3/17/2019 3/23/2019 3/27/2019 4/9/2019 4/25/2019 36 2,456.24 88,424.64 APNPC 00880580 0000065850 The W.W. Williams Company LLC 3/12/2019 3/12/2019 3/15/2019 4/1/2019 4/11/2019 30 105.00 3,150.00 APNPC 00880933 0000067185 Cintas Corporation No 2 3/27/2019 3/27/2019 3/27/2019 4/4/2019 4/25/2019 29 25.00 725.00 APNPC 00881377 0000013743 Silver State Petroleum 3/27/2019 3/27/2019 3/27/2019 4/5/2019 4/26/2019 30 299.06 8,971.80 APNPC 00888309 0000012580 Grainger 5/8/2019 5/8/2019 5/8/2019 5/17/2019 6/6/2019 29 110.09 3,192.61 APNPC 00888499 0000065070 Pacific Office Automation 4/1/2019 5/1/2019 5/15/2019 5/20/2019 6/13/2019 58 1,059.95 61,477.10 APNPC 00885022 0000010771 Lin-Air 4/8/2019 4/8/2019 4/8/2019 5/2/2019 5/8/2019 30 267.25 8,017.50 APNPC 00886671 0000010028 AAA Air Filter Company Inc 4/29/2019 4/29/2019 4/29/2019 5/7/2019 5/28/2019 29 42.00 1,218.00 APNPC 00887927 0000056443 Hydro Air Hughes LLC 3/20/2019 3/20/2019 3/20/2019 5/16/2019 5/17/2019 58 164.32 9,530.56 APNPC 00889229 0000062820 Tyndale Company 5/20/2019 5/20/2019 5/21/2019 5/28/2019 6/19/2019 30 63.43 1,902.90 APNPC 00885073 0000065640 Sunbelt Rentals Inc 4/1/2019 4/28/2019 4/16/2019 5/2/2019 5/15/2019 31 200.00 6,100.00 APNPC 00887281 0000012955 FedEx 5/10/2019 5/10/2019 5/10/2019 5/14/2019 6/6/2019 27 13.21 356.67 APNPC 00887163 0000058591 Western Elite 4/23/2019 4/23/2019 4/27/2019 5/13/2019 5/23/2019 30 50.00 1,500.00 APNPC 00888860 0000068409 BrandSafway Services LLC 5/5/2019 5/11/2019 5/16/2019 5/22/2019 6/13/2019 36 2,394.00 86,184.00 APNPC 00889081 0000059530 Aon Risk Services Central Inc 6/23/2019 6/23/2020 5/20/2019 5/28/2019 6/19/2019 (187) 75.00 (14,025.00) APNPC 00888124 0000062820 Tyndale Company 5/14/2019 5/14/2019 5/15/2019 5/20/2019 6/13/2019 30 44.97 1,349.10 APNPC 00887730 0000061532 Access Solutions LLC 2/11/2019 2/19/2019 5/10/2019 5/15/2019 6/7/2019 112 529.34 59,286.08 APNPC 00889560 0000012190 Praxair Distribution Inc 5/20/2019 5/20/2019 5/21/2019 5/25/2019 6/19/2019 30 216.50 6,495.00 APNPC 00887965 0000067185 Cintas Corporation No 2 5/15/2019 5/15/2019 5/15/2019 5/22/2019 6/13/2019 29 25.00 725.00 APNPC 00888435 0000065070 Pacific Office Automation 4/1/2019 5/1/2019 5/15/2019 5/21/2019 6/13/2019 58 6,357.98 368,762.84 APNPC 00885150 0000067185 Cintas Corporation No 2 4/24/2019 4/24/2019 4/24/2019 5/2/2019 5/23/2019 29 25.00 725.00 APNPC 00886263 0000039493 Cintas First Aid & Safety 4/23/2019 4/23/2019 4/23/2019 5/3/2019 5/22/2019 29 11.00 319.00

Page 137 of 247 Exhibit Walker-Direct-2 Page 11 of 30

Nevada Power Company d/b/a NV Energy Schedule VI Goods and Services Lead Lag Study January 1, 2019 - December 31, 2019 Total Amount Paid Total Dollar Days $ 1,708,873.71 $ 61,268,114.18

Total Lag Days: 35.85

Service Service Invoice Payment Lag Unit Voucher Vendor Name Acctg Date Amount Paid Dollar Days Date 1 Date 2 Date Date Days APNPC 00888844 0000013939 Caltrol Inc 5/17/2019 5/17/2019 5/17/2019 5/22/2019 6/14/2019 28 141.62 3,965.36 APNPC 00885921 0000070111 A-1 National Fire Co LLC 4/1/2019 4/30/2019 4/1/2019 5/1/2019 5/1/2019 16 1,756.81 27,230.56 APNPC 00886848 0000012580 Grainger 5/6/2019 5/6/2019 5/6/2019 5/8/2019 6/3/2019 28 125.14 3,503.92 APNPC 00889860 0000010814 Motion Industries 5/21/2019 5/21/2019 5/21/2019 5/29/2019 6/3/2019 13 (15.66) (203.58) APNPC 00886103 0000024065 Las Vegas Color Graphics Inc 4/25/2019 4/25/2019 4/25/2019 5/13/2019 5/23/2019 28 7,786.40 218,019.20 APNPC 00885625 0000062820 Tyndale Company 4/26/2019 4/26/2019 4/27/2019 5/1/2019 5/23/2019 27 119.94 3,238.38 APNPC 00885697 0000039421 Savco Plumbing Sewer & Drain 3/19/2019 3/19/2019 3/19/2019 5/13/2019 5/15/2019 57 1,490.00 84,930.00 APNPC 00887803 0000010080 Kiesub Electronics 5/13/2019 5/13/2019 5/13/2019 5/17/2019 6/11/2019 29 41.31 1,197.99 APNPC 00886706 0000064980 SB Landscaping 4/30/2019 4/30/2019 4/30/2019 5/8/2019 5/29/2019 29 139.94 4,058.26 APNPC 00887066 0000062820 Tyndale Company 4/24/2019 4/24/2019 4/29/2019 5/10/2019 5/28/2019 34 249.90 8,496.60 APNPC 00887672 0000058591 Western Elite 5/1/2019 5/31/2019 5/4/2019 5/15/2019 5/31/2019 15 40.00 600.00 APNPC 00887309 0000066282 Cognizant Worldwide Limited 4/1/2019 4/30/2019 4/30/2019 5/14/2019 5/29/2019 44 102,652.32 4,465,375.92 APNPC 00886191 0000010080 Kiesub Electronics 4/30/2019 4/30/2019 4/30/2019 5/2/2019 5/29/2019 29 12.19 353.51 APNPC 00887324 0000070111 A-1 National Fire Co LLC 4/1/2019 4/30/2019 4/1/2019 5/11/2019 5/13/2019 28 1,266.67 34,833.43 APNPC 00890466 0000012190 Praxair Distribution Inc 5/21/2019 5/21/2019 5/21/2019 6/1/2019 6/19/2019 29 216.50 6,278.50 APNPC 00890737 0000066037 HALO Recognition 5/31/2019 5/31/2019 5/31/2019 6/13/2019 6/27/2019 27 223.88 6,044.76 APNPC 00887798 0000070459 Gary Norland Safety 5/13/2019 5/13/2019 5/13/2019 6/3/2019 6/12/2019 30 6,431.58 192,947.40 APNPC 00892288 0000043392 Airgas Specialty Products Inc 6/10/2019 6/10/2019 6/10/2019 6/13/2019 7/9/2019 29 6,448.38 187,003.02 APNPC 00892409 0000012190 Praxair Distribution Inc 8/22/2018 8/22/2018 8/22/2018 6/13/2019 6/13/2019 295 311.76 91,969.20 APNPC 00892473 0000049697 Reliable Equipment and 6/12/2019 6/12/2019 6/12/2019 6/18/2019 7/12/2019 30 73.68 2,210.40 APNPC 00889465 0000062820 Tyndale Company 5/22/2019 5/22/2019 5/23/2019 6/6/2019 6/20/2019 29 59.97 1,739.13 APNPC 00892353 0000068409 BrandSafway Services LLC 3/18/2019 4/14/2019 4/20/2019 6/13/2019 6/13/2019 74 8,423.20 619,105.20 APNPC 00893817 0000010080 Kiesub Electronics 6/19/2019 6/19/2019 6/19/2019 6/26/2019 7/18/2019 29 635.16 18,419.64 APNPC 00891321 0000043392 Airgas Specialty Products Inc 5/24/2019 5/24/2019 5/24/2019 6/6/2019 6/20/2019 27 6,282.38 169,624.26 APNPC 00893706 0000012190 Praxair Distribution Inc 5/29/2019 5/29/2019 5/29/2019 6/21/2019 6/27/2019 29 396.58 11,500.82 APNPC 00890437 0000059583 HomeServices Relocation LLC 5/31/2019 5/31/2019 5/31/2019 6/3/2019 6/27/2019 27 5,000.00 135,000.00 APNPC 00893446 0000052445 DJB Gas Services Inc 6/18/2019 6/18/2019 6/18/2019 6/28/2019 7/17/2019 29 138.67 4,021.43 APNPC 00893587 0000012190 Praxair Distribution Inc 1/20/2019 2/20/2019 2/21/2019 6/20/2019 6/20/2019 136 88.77 12,028.34 APNPC 00890406 0000010981 Market Strategies 5/31/2019 5/31/2019 5/31/2019 6/4/2019 6/28/2019 28 92,500.00 2,590,000.00 APNPC 00890905 0000012705 Las Vegas Review Journal 5/14/2019 5/14/2019 5/14/2019 6/25/2019 6/26/2019 43 2,141.83 92,098.69 APNPC 00894356 0000064980 SB Landscaping 6/21/2019 6/21/2019 6/21/2019 6/26/2019 7/2/2019 11 115.78 1,273.58 APNPC 00890870 0000012705 Las Vegas Review Journal 5/23/2019 5/23/2019 5/23/2019 6/25/2019 6/26/2019 34 144.00 4,896.00 APNPC 00893201 0000054300 National Barricade Company 6/6/2019 6/6/2019 6/9/2019 6/28/2019 7/8/2019 32 97.00 3,104.00 APNPC 00892143 0000016428 Republic Services 6/1/2019 6/30/2019 5/31/2019 6/13/2019 6/13/2019 (3) 489.57 (1,223.93) APNPC 00893378 0000054300 National Barricade Company 6/3/2019 6/3/2019 6/9/2019 6/28/2019 7/8/2019 35 270.00 9,450.00 APNPC 00890800 0000062820 Tyndale Company 5/31/2019 5/31/2019 6/1/2019 6/6/2019 6/28/2019 28 1,937.73 54,256.44 APNPC 00894011 0000057606 OMICRON Electronics Corp USA 6/21/2019 6/21/2019 6/21/2019 6/25/2019 7/19/2019 28 1,190.00 33,320.00 APNPC 00891099 0000012803 Ryan Mechanical Inc 4/22/2019 4/22/2019 5/20/2019 6/5/2019 6/18/2019 57 1,173.94 66,914.58 APNPC 00892702 0000014242 Air Filter Sales & Service Co Inc 6/3/2019 6/3/2019 6/3/2019 6/18/2019 7/3/2019 30 49.36 1,480.80 APNPC 00893403 0000012190 Praxair Distribution Inc 2/21/2019 2/21/2019 2/21/2019 6/19/2019 6/19/2019 118 1,299.00 153,282.00 APNPC 00893908 0000015032 U.S. Bank Trust National Assoc 5/1/2019 4/30/2020 5/24/2019 6/21/2019 6/24/2019 (129) 5,500.00 (706,750.00) APNPC 00890872 0000062820 Tyndale Company 5/30/2019 5/30/2019 5/31/2019 6/6/2019 6/27/2019 28 485.28 13,587.84 APNPC 00891464 0000013662 UPS 5/29/2019 5/29/2019 6/1/2019 6/7/2019 6/10/2019 12 43.17 518.04 APNPC 00892456 0000014827 Thatcher Company of 3/26/2019 3/26/2019 3/26/2019 6/13/2019 6/13/2019 79 836.56 66,088.24 APNPC 00891391 0000012190 Praxair Distribution Inc 3/6/2019 3/6/2019 3/6/2019 6/6/2019 6/6/2019 92 356.36 32,785.12 APNPC 00893021 0000012803 Ryan Mechanical Inc 4/30/2019 4/30/2019 4/30/2019 6/18/2019 6/18/2019 49 1,153.95 56,543.55 APNPC 00894713 0000062820 Tyndale Company 6/25/2019 6/25/2019 6/26/2019 7/2/2019 7/2/2019 7 (68.85) (481.95) APNPC 00897331 0000059988 The Sherwin-Williams Company 7/9/2019 7/9/2019 7/9/2019 7/17/2019 8/7/2019 29 24.57 712.53 APNPC 00897040 0000054300 National Barricade Company 7/2/2019 7/2/2019 7/7/2019 7/16/2019 8/5/2019 34 97.00 3,298.00 APNPC 00897290 0000068409 BrandSafway Services LLC 6/23/2019 6/29/2019 7/10/2019 7/16/2019 8/8/2019 43 3,637.14 156,397.02 APNPC 00895240 0000062820 Tyndale Company 6/26/2019 6/26/2019 6/28/2019 7/10/2019 7/25/2019 29 323.45 9,380.05 APNPC 00898016 0000054842 Select Services 7/1/2019 7/31/2019 7/11/2019 7/19/2019 8/9/2019 24 220.00 5,280.00 APNPC 00897492 0000061581 Brady Industries LLC 7/12/2019 7/12/2019 7/12/2019 7/18/2019 8/8/2019 27 986.74 26,641.98 APNPC 00895493 0000013749 Western Union Financial Svcs 6/1/2019 6/30/2019 7/2/2019 7/3/2019 7/31/2019 46 35,313.08 1,606,745.14 APNPC 00898074 0000043392 Airgas Specialty Products Inc 7/2/2019 7/2/2019 7/2/2019 7/19/2019 7/31/2019 29 6,775.91 196,501.39 APNPC 00898490 0000063487 Power Systems MFG LLC 4/16/2019 4/16/2019 4/16/2019 7/24/2019 7/24/2019 99 13,241.54 1,310,912.46 APNPC 00893107 0000020779 J&J Enterprises Services Inc 6/15/2019 6/15/2019 6/15/2019 7/25/2019 7/26/2019 41 820.00 33,620.00 APNPC 00898843 0000068409 BrandSafway Services LLC 7/14/2019 7/20/2019 7/23/2019 7/26/2019 8/21/2019 35 359.91 12,596.85 APNPC 00896426 0000013662 UPS 6/24/2019 7/6/2019 7/6/2019 7/11/2019 7/15/2019 15 156.83 2,352.45 APNPC 00897717 0000067185 Cintas Corporation No 2 7/17/2019 7/17/2019 7/17/2019 7/26/2019 8/15/2019 29 40.00 1,160.00 APNPC 00899440 0000060392 Grimco Inc 7/12/2019 7/12/2019 7/12/2019 7/31/2019 8/9/2019 28 138.71 3,883.88 APNPC 00897266 0000014273 City of Las Vegas 8/1/2019 10/31/2019 7/1/2019 7/17/2019 7/17/2019 (61) 57.57 (3,482.99) APNPC 00898631 0000070425 Ice Now NV LLC 7/18/2019 7/18/2019 7/18/2019 7/25/2019 8/16/2019 29 18.78 544.62 APNPC 00898596 0000012190 Praxair Distribution Inc 5/20/2019 6/22/2019 6/22/2019 7/25/2019 7/25/2019 50 1,623.75 80,375.63 APNPC 00897381 0000071031 Allied Universal Security 6/1/2019 6/30/2019 7/7/2019 7/17/2019 8/5/2019 51 3,705.10 187,107.55 APNPC 00895285 0000059583 HomeServices Relocation LLC 6/28/2019 6/28/2019 6/28/2019 7/2/2019 7/25/2019 27 5,370.00 144,990.00 APNPC 00896548 0000068638 Limpio Pro LLC 4/16/2019 4/16/2019 7/6/2019 7/11/2019 8/2/2019 108 393.59 42,507.72 APNPC 00896071 0000056823 Allison Payment Systems LLC 7/3/2019 7/3/2019 7/3/2019 7/9/2019 7/9/2019 6 297,510.28 1,785,061.68 APNPC 00895327 0000051089 S and S Supplies and Solutions 6/26/2019 6/26/2019 6/26/2019 7/2/2019 7/25/2019 29 172.33 4,997.57 APNPC 00896840 0000070425 Ice Now NV LLC 7/10/2019 7/10/2019 7/10/2019 7/15/2019 8/9/2019 30 83.53 2,505.90 APNPC 00896434 0000012580 Grainger 7/3/2019 7/3/2019 7/3/2019 7/10/2019 8/1/2019 29 939.07 27,233.03 APNPC 00888918 0000020779 J&J Enterprises Services Inc 5/20/2019 5/20/2019 5/20/2019 7/25/2019 7/26/2019 67 2,925.00 195,975.00 APNPC 00897258 0000011375 Continental Tire The Americas LLC 7/12/2019 7/12/2019 7/12/2019 7/18/2019 7/22/2019 10 (13.87) (138.70)

Page 138 of 247 Exhibit Walker-Direct-2 Page 12 of 30

Nevada Power Company d/b/a NV Energy Schedule VI Goods and Services Lead Lag Study January 1, 2019 - December 31, 2019 Total Amount Paid Total Dollar Days $ 1,708,873.71 $ 61,268,114.18

Total Lag Days: 35.85

Service Service Invoice Payment Lag Unit Voucher Vendor Name Acctg Date Amount Paid Dollar Days Date 1 Date 2 Date Date Days APNPC 00896309 0000013877 City of LA Dept of Water & Pwr 5/1/2019 5/31/2019 6/26/2019 7/17/2019 7/26/2019 71 131,421.37 9,330,917.27 APNPC 00894985 0000062820 Tyndale Company 6/25/2019 6/25/2019 6/27/2019 7/2/2019 7/25/2019 30 1,128.45 33,853.50 APNPC 00897277 0000065245 Harris 6/29/2019 7/1/2019 7/6/2018 7/16/2019 7/16/2019 16 1,920.79 30,732.64 APNPC 00895145 0000010180 Cintas Corporation 6/6/2019 6/6/2019 6/6/2019 7/1/2019 7/3/2019 27 863.85 23,323.95 APNPC 00896140 0000062820 Tyndale Company 7/3/2019 7/3/2019 7/4/2019 7/9/2019 8/1/2019 29 106.09 3,076.61 APNPC 00903981 0000062820 Tyndale Company 8/14/2019 8/14/2019 8/15/2019 8/29/2019 9/12/2019 29 200.21 5,806.09 APNPC 00899592 0000062820 Tyndale Company 7/26/2019 7/26/2019 7/29/2019 8/1/2019 8/27/2019 32 193.39 6,188.48 APNPC 00903217 0000012190 Praxair Distribution Inc 8/16/2019 8/16/2019 8/16/2019 8/23/2019 9/12/2019 27 5,942.31 160,442.37 APNPC 00900791 0000057924 US Payments LLC 7/1/2019 7/31/2019 7/31/2019 8/12/2019 8/28/2019 43 14,300.72 614,930.96 APNPC 00901472 0000012190 Praxair Distribution Inc 5/22/2019 5/22/2019 5/22/2019 8/12/2019 8/12/2019 82 1,037.90 85,107.80 APNPC 00900499 0000062820 Tyndale Company 8/2/2019 8/2/2019 8/3/2019 8/7/2019 8/29/2019 27 19.43 524.61 APNPC 00903339 0000037615 Brenntag Pacific Inc 8/15/2019 8/15/2019 8/15/2019 8/23/2019 9/13/2019 29 9,055.11 262,598.19 APNPC 00902686 0000054252 WaterRock Environmental Inc 8/1/2019 8/31/2019 8/7/2019 8/20/2019 9/6/2019 21 2,053.00 43,113.00 APNPC 00903488 0000061577 Clark County Collection Service LLC 8/15/2019 8/15/2019 8/15/2019 8/27/2019 9/13/2019 29 2,906.38 84,285.02 APNPC 00901627 0000070425 Ice Now NV LLC 8/5/2019 8/5/2019 8/5/2019 8/13/2019 9/4/2019 30 51.08 1,532.40 APNPC 00899465 0000058938 Vegas Electric Supply Co 7/17/2019 7/17/2019 7/18/2019 8/1/2019 8/15/2019 29 69.13 2,004.77 APNPC 00903317 0000059583 HomeServices Relocation LLC 8/20/2019 8/20/2019 8/20/2019 8/26/2019 9/18/2019 29 5,370.00 155,730.00 APNPC 00900385 0000010066 Graybar 7/29/2019 7/29/2019 7/29/2019 8/5/2019 8/27/2019 29 272.12 7,891.48 APNPC 00903095 0000070836 H2O Environmental Inc 8/1/2019 8/1/2019 8/15/2019 8/22/2019 9/13/2019 43 1,428.00 61,404.00 APNPC 00899352 0000010080 Kiesub Electronics 7/26/2019 7/26/2019 7/26/2019 8/1/2019 8/22/2019 27 25.25 681.75 APNPC 00903532 0000010028 AAA Air Filter Company Inc 3/11/2019 3/11/2019 3/11/2019 8/27/2019 8/27/2019 169 1,760.67 297,553.23 APNPC 00901180 0000055832 Newtex Landscape Inc 7/2/2019 7/2/2019 7/2/2019 8/12/2019 8/14/2019 43 950.00 40,850.00 APNPC 00902239 0000054300 National Barricade Company 4/30/2019 8/11/2019 8/11/2019 8/22/2019 9/9/2019 81 135.50 10,907.75 APNPC 00904520 0000013662 UPS 8/10/2019 8/21/2019 8/24/2019 8/30/2019 9/3/2019 19 77.23 1,428.76 APNPC 00901902 0000068638 Limpio Pro LLC 7/1/2019 7/31/2019 8/5/2019 8/15/2019 9/3/2019 49 1,579.57 77,398.93 APNPC 00902483 0000064155 ITT Industries Holdings Inc 7/26/2019 7/26/2019 7/26/2019 8/17/2019 8/22/2019 27 12,827.00 346,329.00 APNPC 00900579 0000010080 Kiesub Electronics 8/2/2019 8/2/2019 8/2/2019 8/9/2019 8/29/2019 27 25.25 681.75 APNPC 00903767 0000010080 Kiesub Electronics 8/23/2019 8/23/2019 8/23/2019 8/30/2019 9/19/2019 27 26.94 727.38 APNPC 00900918 0000067185 Cintas Corporation No 2 8/7/2019 8/7/2019 8/7/2019 8/9/2019 9/5/2019 29 5.00 145.00 APNPC 00902194 0000054300 National Barricade Company 8/5/2019 8/6/2019 8/11/2019 8/22/2019 9/9/2019 35 305.00 10,522.50 APNPC 00901953 0000010085 Modular Services Co Inc 8/8/2019 8/8/2019 8/11/2019 8/15/2019 9/9/2019 32 71.25 2,280.00 APNPC 00900940 0000010531 Hach Company 8/1/2019 8/1/2019 8/1/2019 8/8/2019 8/29/2019 28 484.52 13,566.56 APNPC 00900366 0000068427 Kohlls Pharmacy and 10/9/2018 10/11/2018 1/22/2019 8/2/2019 8/5/2019 299 6,489.00 1,940,211.00 APNPC 00901564 0000012955 FedEx 8/9/2019 8/9/2019 8/9/2019 8/14/2019 9/5/2019 27 18.78 507.06 APNPC 00899067 0000059125 ATM Electric 7/20/2019 7/20/2019 7/26/2019 8/5/2019 8/23/2019 34 394.01 13,396.34 APNPC 00901116 0000057146 Sedillo Landscaping Incorporated 8/1/2019 8/1/2019 8/1/2019 8/9/2019 8/28/2019 27 437.24 11,805.48 APNPC 00903702 0000012190 Praxair Distribution Inc 6/8/2019 6/8/2019 6/8/2019 8/27/2019 8/27/2019 80 999.77 79,981.60 APNPC 00904790 0000012596 Rain For Rent 8/27/2019 8/27/2019 8/27/2019 9/1/2019 9/25/2019 29 352.69 10,228.01 APNPC 00905652 0000055099 Desert Diecutting 9/6/2019 9/6/2019 9/6/2019 9/11/2019 10/4/2019 28 92.01 2,576.28 APNPC 00905935 0000063191 DTN LLC 9/1/2019 9/30/2019 9/6/2019 9/12/2019 10/3/2019 18 519.00 9,082.50 APNPC 00906643 0000044773 Utah State 9/4/2019 9/4/2019 9/16/2019 9/16/2019 9/16/2019 12 50.00 600.00 APNPC 00905201 0000067185 Cintas Corporation No 2 9/4/2019 9/4/2019 9/4/2019 9/11/2019 10/3/2019 29 5.00 145.00 APNPC 00904879 0000010771 Lin-Air 8/30/2019 8/30/2019 8/30/2019 9/12/2019 9/27/2019 28 538.75 15,085.00 APNPC 00904702 0000051089 S and S Supplies and Solutions 8/27/2019 8/27/2019 8/27/2019 9/9/2019 9/25/2019 29 229.72 6,661.88 APNPC 00907707 0000065070 Pacific Office Automation 8/1/2019 9/1/2019 9/20/2019 9/24/2019 10/17/2019 62 6,376.82 392,174.43 APNPC 00904906 0000066037 HALO Recognition 8/2/2019 8/27/2019 8/31/2019 9/13/2019 9/27/2019 44 8,842.31 384,640.49 APNPC 00905049 0000062820 Tyndale Company 8/30/2019 8/30/2019 8/31/2019 9/11/2019 9/27/2019 28 128.33 3,593.24 APNPC 00905738 0000010184 Dielco Crane Service Inc 8/20/2019 8/20/2019 8/28/2019 9/10/2019 9/26/2019 37 1,365.00 50,505.00 APNPC 00906453 0000011672 Kaman Industrial Technologies 9/9/2019 9/9/2019 9/9/2019 9/13/2019 10/8/2019 29 862.15 25,002.35 APNPC 00904844 0000068409 BrandSafway Services LLC 8/11/2019 8/17/2019 8/30/2019 9/3/2019 9/26/2019 43 2,044.72 87,922.96 APNPC 00904209 0000067185 Cintas Corporation No 2 8/27/2019 8/27/2019 8/27/2019 9/5/2019 9/25/2019 29 40.00 1,160.00 APNPC 00907942 0000070924 United Site Services Inc 7/12/2019 8/8/2019 8/12/2019 9/23/2019 9/23/2019 60 211.50 12,584.25 APNPC 00908689 0000012580 Grainger 9/23/2019 9/23/2019 9/23/2019 9/26/2019 10/22/2019 29 403.43 11,699.47 APNPC 00906978 0000056780 McFadden Dale Industrial 9/17/2019 9/17/2019 9/17/2019 9/20/2019 10/16/2019 29 89.66 2,600.14 APNPC 00906319 0000054300 National Barricade Company 9/3/2019 9/6/2019 9/8/2019 9/17/2019 10/7/2019 33 1,744.00 56,680.00 APNPC 00905999 0000020779 J&J Enterprises Services Inc 8/22/2019 8/22/2019 9/7/2019 9/18/2019 10/7/2019 46 212.00 9,752.00 APNPC 00905217 0000066323 Ardmore Power Logistics LLC 9/5/2019 9/5/2019 9/5/2019 9/6/2019 10/3/2019 28 224.43 6,284.04 APNPC 00907701 0000058096 PayFlex Systems USA, Inc 9/15/2019 9/15/2019 9/15/2019 9/20/2019 9/23/2019 8 3,875.01 31,000.08 APNPC 00908693 0000013929 The Barrel Company 9/24/2019 9/24/2019 9/24/2019 9/26/2019 10/23/2019 29 774.42 22,458.18 APNPC 00905491 0000010080 Kiesub Electronics 9/5/2019 9/5/2019 9/5/2019 9/10/2019 10/3/2019 28 38.19 1,069.32 APNPC 00905646 0000062820 Tyndale Company 9/4/2019 9/4/2019 9/5/2019 9/11/2019 10/3/2019 29 84.00 2,436.00 APNPC 00897809 0000011778 LexisNexis 6/1/2019 6/30/2019 6/30/2019 9/3/2019 9/4/2019 81 8,108.75 652,754.38 APNPC 00906093 0000010080 Kiesub Electronics 9/10/2019 9/10/2019 9/10/2019 9/13/2019 10/9/2019 29 199.35 5,781.15 APNPC 00907903 0000017579 Safe Electronics Inc 9/18/2019 9/18/2019 9/18/2019 9/21/2019 10/18/2019 30 2,000.00 60,000.00 APNPC 00907868 0000062820 Tyndale Company 9/17/2019 9/17/2019 9/20/2019 9/24/2019 9/25/2019 8 (193.33) (1,546.64) APNPC 00907219 0000059583 HomeServices Relocation LLC 9/17/2019 9/17/2019 9/17/2019 9/19/2019 10/16/2019 29 370.00 10,730.00 APNPC 00908782 0000065070 Pacific Office Automation 8/1/2019 9/1/2019 9/20/2019 9/30/2019 10/17/2019 62 4,872.40 299,652.60 APNPC 00907022 0000010080 Kiesub Electronics 6/6/2019 6/6/2019 6/6/2019 9/25/2019 9/25/2019 111 71.10 7,892.10 APNPC 00905619 0000012190 Praxair Distribution Inc 8/27/2019 8/27/2019 8/27/2019 9/10/2019 9/25/2019 29 553.03 16,037.87 APNPC 00909274 0000010080 Kiesub Electronics 9/27/2019 9/27/2019 9/27/2019 10/8/2019 10/24/2019 27 1,676.91 45,276.57 APNPC 00912097 0000010180 Cintas Corporation 5/21/2019 5/21/2019 5/21/2019 10/17/2019 10/18/2019 150 422.54 63,381.00 APNPC 00912123 0000059151 KUBRA Arizona Inc 9/1/2019 9/30/2019 10/16/2019 10/18/2019 11/14/2019 60 16,041.40 954,463.30 APNPC 00909857 0000062820 Tyndale Company 10/1/2019 10/1/2019 10/2/2019 10/4/2019 10/31/2019 30 124.81 3,744.30

Page 139 of 247 Exhibit Walker-Direct-2 Page 13 of 30

Nevada Power Company d/b/a NV Energy Schedule VI Goods and Services Lead Lag Study January 1, 2019 - December 31, 2019 Total Amount Paid Total Dollar Days $ 1,708,873.71 $ 61,268,114.18

Total Lag Days: 35.85

Service Service Invoice Payment Lag Unit Voucher Vendor Name Acctg Date Amount Paid Dollar Days Date 1 Date 2 Date Date Days APNPC 00912140 0000010080 Kiesub Electronics 10/16/2019 10/16/2019 10/16/2019 10/24/2019 11/14/2019 29 12.18 353.22 APNPC 00909504 0000026510 Clean Harbors Env Services 8/28/2019 8/28/2019 9/13/2019 10/2/2019 10/11/2019 44 7,328.33 322,446.52 APNPC 00908876 0000013727 City of North Las Vegas 7/24/2019 9/17/2019 9/24/2019 10/1/2019 10/9/2019 50 82.51 4,084.25 APNPC 00914071 0000056509 DXP Enterprises Inc 10/22/2019 10/22/2019 10/22/2019 10/29/2019 11/20/2019 29 6,211.39 180,130.31 APNPC 00913751 0000014827 Thatcher Company of 3/22/2019 3/22/2019 3/22/2019 10/28/2019 10/28/2019 220 886.74 195,082.80 APNPC 00912425 0000010531 Hach Company 10/15/2019 10/15/2019 10/15/2019 10/22/2019 11/13/2019 29 99.51 2,885.79 APNPC 00911501 0000062820 Tyndale Company 10/10/2019 10/10/2019 10/11/2019 10/20/2019 11/7/2019 28 242.54 6,791.12 APNPC 00910117 0000014273 City of Las Vegas 11/1/2019 1/31/2020 10/1/2019 10/10/2019 10/16/2019 (62) 57.57 (3,540.56) APNPC 00913398 0000068435 Willis Towers Watson 9/1/2019 9/30/2019 9/25/2019 10/31/2019 10/30/2019 45 4,694.60 208,909.70 APNPC 00908961 0000055099 Desert Diecutting 9/26/2019 9/26/2019 9/26/2019 10/1/2019 10/25/2019 29 106.09 3,076.61 APNPC 00908141 0000010948 Manning Hall & Salisbury LLC 7/9/2019 7/9/2019 7/22/2019 10/2/2019 10/2/2019 85 380.55 32,346.75 APNPC 00909768 0000010080 Kiesub Electronics 10/1/2019 10/1/2019 10/1/2019 10/7/2019 10/30/2019 29 55.92 1,621.68 APNPC 00909166 0000012537 Southwell Industries 9/26/2019 9/26/2019 9/26/2019 10/1/2019 10/25/2019 29 1,065.18 30,890.22 APNPC 00913905 0000010410 De Walch Technologies Inc 10/22/2019 10/22/2019 10/22/2019 10/31/2019 11/20/2019 29 2,558.12 74,185.48 APNPC 00911923 0000062820 Tyndale Company 10/14/2019 10/14/2019 10/15/2019 10/21/2019 11/13/2019 30 471.05 14,131.50 APNPC 00913829 0000066229 Salisbury Online 9/30/2019 9/30/2019 9/30/2019 10/31/2019 10/30/2019 30 372.00 11,160.00 APNPC 00912395 0000054300 National Barricade Company 10/10/2019 10/10/2019 10/13/2019 10/28/2019 11/8/2019 29 245.00 7,105.00 APNPC 00911119 0000010080 Kiesub Electronics 10/10/2019 10/10/2019 10/10/2019 10/14/2019 11/7/2019 28 154.19 4,317.32 APNPC 00910354 0000040107 Crown Equipment Corporation 10/1/2019 10/31/2019 10/1/2019 10/9/2019 10/30/2019 14 207.00 2,898.00 APNPC 00913001 0000011534 Suez WTS Services USA Inc 7/12/2019 8/16/2019 8/20/2019 10/23/2019 10/23/2019 86 9,053.66 774,087.93 APNPC 00910333 0000070425 Ice Now NV LLC 10/4/2019 10/4/2019 10/4/2019 10/9/2019 11/1/2019 28 16.80 470.40 APNPC 00910547 0000051089 S and S Supplies and Solutions 10/2/2019 10/2/2019 10/2/2019 10/10/2019 10/31/2019 29 94.31 2,734.99 APNPC 00909936 0000062820 Tyndale Company 10/1/2019 10/1/2019 10/2/2019 10/11/2019 10/31/2019 30 37.76 1,132.80 APNPC 00911779 0000062820 Tyndale Company 10/10/2019 10/10/2019 10/12/2019 10/18/2019 11/7/2019 28 400.80 11,222.40 APNPC 00911919 0000013249 STB Electrical Test Equip Inc 9/5/2019 9/5/2019 9/5/2019 10/23/2019 10/23/2019 48 321.47 15,430.56 APNPC 00910216 0000021246 Biddle Consulting Group Inc 9/4/2019 9/4/2019 9/4/2019 10/8/2019 10/9/2019 35 5,450.00 190,750.00 APNPC 00912176 0000066323 Ardmore Power Logistics LLC 10/17/2019 10/17/2019 10/17/2019 10/22/2019 11/14/2019 28 1,288.65 36,082.20 APNPC 00914064 0000062820 Tyndale Company 10/15/2019 10/15/2019 10/17/2019 10/29/2019 11/14/2019 30 304.41 9,132.30 APNPC 00915585 0000012580 Grainger 10/31/2019 10/31/2019 10/31/2019 11/7/2019 11/26/2019 26 229.03 5,954.78 APNPC 00917484 0000060299 Kelly Paper Company 11/19/2019 11/19/2019 11/19/2019 11/22/2019 11/26/2019 7 (31.62) (221.34) APNPC 00915696 0000039493 Cintas First Aid & Safety 11/1/2019 11/1/2019 11/1/2019 11/8/2019 11/26/2019 25 103.19 2,579.75 APNPC 00914545 0000059583 HomeServices Relocation LLC 10/31/2019 10/31/2019 10/31/2019 11/1/2019 11/26/2019 26 5,000.00 130,000.00 APNPC 00918091 0000030669 Aargon Agency Inc 11/15/2019 11/15/2019 11/15/2019 11/25/2019 12/12/2019 27 608.37 16,425.99 APNPC 00915297 0000012955 FedEx 10/25/2019 10/25/2019 10/25/2019 11/13/2019 11/21/2019 27 73.82 1,993.14 APNPC 00915918 0000065245 Harris 10/31/2019 10/31/2019 11/7/2019 11/13/2019 12/6/2019 36 248.00 8,928.00 APNPC 00917441 0000010814 Motion Industries 11/14/2019 11/14/2019 11/14/2019 11/21/2019 11/26/2019 12 200.48 2,405.76 APNPC 00914455 0000010500 Capital Westward Systems 10/24/2019 10/24/2019 10/24/2019 11/1/2019 11/21/2019 28 7,428.12 207,987.36 APNPC 00915436 0000073207 Newtex Landscape 9/16/2019 9/16/2019 9/16/2019 11/26/2019 11/26/2019 71 700.00 49,700.00 APNPC 00916242 0000069075 Woolpert Inc 10/1/2019 10/31/2019 11/12/2019 11/19/2019 12/11/2019 56 1,392.34 77,971.04 APNPC 00914661 0000062820 Tyndale Company 10/24/2019 10/24/2019 10/28/2019 11/1/2019 11/26/2019 33 298.50 9,850.50 APNPC 00916710 0000011209 The Bank of New York Mellon 11/1/2019 11/1/2019 11/1/2019 11/14/2019 11/15/2019 14 3,569.10 49,967.40 APNPC 00915493 0000028991 Innovative Utility Products 10/28/2019 10/28/2019 10/28/2019 11/15/2019 11/26/2019 29 176.68 5,123.72 APNPC 00915047 0000011534 Suez WTS Services USA Inc 8/26/2018 9/25/2018 4/29/2019 11/5/2019 11/5/2019 421 487.14 205,085.94 APNPC 00916888 0000062820 Tyndale Company 11/7/2019 11/7/2019 11/9/2019 11/16/2019 12/6/2019 29 352.05 10,209.45 APNPC 00916467 0000035382 Codale Electric Supply Inc 11/7/2019 11/7/2019 11/7/2019 11/14/2019 12/6/2019 29 1,162.61 33,715.69 APNPC 00918221 0000010080 Kiesub Electronics 11/22/2019 11/22/2019 11/22/2019 11/26/2019 12/19/2019 27 205.73 5,554.71 APNPC 00917317 0000055099 Desert Diecutting 11/19/2019 11/19/2019 11/19/2019 11/25/2019 12/18/2019 29 5.54 160.66 APNPC 00916479 0000016428 Republic Services 10/24/2019 10/24/2019 10/31/2019 11/14/2019 11/14/2019 21 296.52 6,226.92 APNPC 00914475 0000065679 AMC Fabrication Inc 10/31/2019 10/31/2019 10/31/2019 11/14/2019 11/26/2019 26 215.81 5,611.06 APNPC 00918145 0000011534 Suez WTS Services USA Inc 6/26/2019 7/25/2019 11/20/2019 11/25/2019 12/19/2019 162 13,576.77 2,192,648.36 APNPC 00914719 0000064092 ConvergeOne 10/1/2019 12/31/2019 10/31/2019 11/7/2019 11/26/2019 11 171,740.72 1,803,277.56 APNPC 00916979 0000062820 Tyndale Company 11/15/2019 11/15/2019 11/16/2019 11/21/2019 12/13/2019 28 240.64 6,737.92 APNPC 00915121 0000073172 Elizabeth Elliot 8/22/2019 10/8/2019 10/8/2019 11/18/2019 11/20/2019 67 2,250.00 149,625.00 APNPC 00915302 0000010080 Kiesub Electronics 11/4/2019 11/4/2019 11/4/2019 11/14/2019 12/3/2019 29 240.86 6,984.94 APNPC 00913794 0000072390 Metroprint Nevada Inc 10/28/2019 10/28/2019 10/28/2019 11/26/2019 11/26/2019 29 497.95 14,440.55 APNPC 00918143 0000043392 Airgas Specialty Products Inc 11/19/2019 11/19/2019 11/21/2019 11/25/2019 12/19/2019 30 5,449.56 163,486.80 APNPC 00915717 0000010120 Asplundh Tree Expert LLC 9/1/2019 9/30/2019 10/25/2019 11/22/2019 11/25/2019 71 79,705.29 5,619,222.95 APNPC 00916401 0000058591 Western Elite 10/28/2019 10/28/2019 11/2/2019 11/13/2019 11/27/2019 30 940.00 28,200.00 APNPC 00915987 0000010080 Kiesub Electronics 11/7/2019 11/7/2019 11/7/2019 11/19/2019 12/5/2019 28 36.04 1,009.12 APNPC 00908884 0000054300 National Barricade Company 9/17/2019 9/17/2019 9/22/2019 11/4/2019 11/4/2019 48 219.44 10,533.12 APNPC 00918561 0000061581 Brady Industries LLC 11/26/2019 11/26/2019 11/26/2019 12/4/2019 12/24/2019 28 962.92 26,961.76 APNPC 00922268 0000046226 IML Security Supply 12/18/2019 12/18/2019 12/18/2019 12/24/2019 1/17/2020 30 143.97 4,319.10 APNPC 00921336 0000037158 Veritas Laboratories 11/29/2019 11/29/2019 11/29/2019 12/16/2019 12/26/2019 27 523.00 14,121.00 APNPC 00918787 0000061127 A-Check Global 11/27/2019 11/27/2019 11/27/2019 12/6/2019 12/27/2019 30 233.50 7,005.00 APNPC 00921721 0000056509 DXP Enterprises Inc 12/12/2019 12/12/2019 12/12/2019 12/18/2019 1/9/2020 28 69.28 1,939.84 APNPC 00923058 0000065640 Sunbelt Rentals Inc 12/17/2019 12/17/2019 12/17/2019 12/26/2019 1/15/2020 29 133.69 3,877.01 APNPC 00918593 0000012580 Grainger 11/26/2019 11/26/2019 11/26/2019 12/4/2019 12/24/2019 28 575.12 16,103.36 APNPC 00922238 0000014459 Littler Mendelson PC 10/1/2019 10/31/2019 11/25/2019 12/20/2019 12/23/2019 68 240.00 16,320.00 APNPC 00919009 0000055999 Adler Tank Rentals 11/1/2019 11/25/2019 11/26/2019 12/9/2019 12/23/2019 40 2,965.13 118,605.20 APNPC 00920202 0000012190 Praxair Distribution Inc 11/27/2019 11/27/2019 11/27/2019 12/10/2019 12/26/2019 29 496.68 14,403.72 APNPC 00918977 0000066323 Ardmore Power Logistics LLC 11/27/2019 11/27/2019 11/27/2019 12/20/2019 12/26/2019 29 1,365.04 39,586.16 APNPC 00918922 0000070778 Staples Inc 11/1/2019 11/30/2019 11/30/2019 12/11/2019 12/30/2019 45 280.37 12,476.47 APNPC 00922179 0000037158 Veritas Laboratories 10/31/2019 10/31/2019 10/31/2019 12/19/2019 12/19/2019 49 1,620.00 79,380.00

Page 140 of 247 Exhibit Walker-Direct-2 Page 14 of 30

Nevada Power Company d/b/a NV Energy Schedule VI Goods and Services Lead Lag Study January 1, 2019 - December 31, 2019 Total Amount Paid Total Dollar Days $ 1,708,873.71 $ 61,268,114.18

Total Lag Days: 35.85

Service Service Invoice Payment Lag Unit Voucher Vendor Name Acctg Date Amount Paid Dollar Days Date 1 Date 2 Date Date Days APNPC 00917487 0000067185 Cintas Corporation No 2 11/19/2019 11/19/2019 11/19/2019 12/6/2019 12/18/2019 29 50.91 1,476.39 APNPC 00922537 0000065850 The W.W. Williams Company LLC 12/10/2019 12/10/2019 12/20/2019 12/26/2019 1/16/2020 37 285.00 10,545.00 APNPC 00920365 0000059183 For Fluids.com 12/5/2019 12/5/2019 12/5/2019 12/11/2019 1/3/2020 29 237.61 6,890.69 APNPC 00917661 0000054300 National Barricade Company 11/12/2019 11/12/2019 11/17/2019 12/9/2019 12/16/2019 34 220.00 7,480.00 APNPC 00918196 0000061577 Clark County Collection Service LLC 11/15/2019 11/15/2019 11/15/2019 12/18/2019 12/19/2019 34 4,361.24 148,282.16 APNPC 00921427 0000037615 Brenntag Pacific Inc 12/11/2019 12/11/2019 12/11/2019 12/17/2019 1/10/2020 30 10,196.89 305,906.70 APNPC 00921710 0000058938 Vegas Electric Supply Co 12/4/2019 12/4/2019 12/4/2019 12/18/2019 1/2/2020 29 211.09 6,121.61 APNPC 00922430 0000061577 Clark County Collection Service LLC 12/15/2019 12/15/2019 12/15/2019 12/30/2019 1/13/2020 29 4.50 130.50 APNPC 00920345 0000065640 Sunbelt Rentals Inc 11/9/2019 12/6/2019 11/27/2019 12/11/2019 12/26/2019 34 9,587.72 321,188.62 APNPC 00921413 0000062820 Tyndale Company 12/12/2019 12/12/2019 12/13/2019 12/17/2019 1/9/2020 28 1,302.58 36,472.24 APNPC 00919632 0000068409 BrandSafway Services LLC 11/10/2019 11/16/2019 11/23/2019 12/6/2019 12/20/2019 37 1,082.52 40,053.24 APNPC 00920584 0000011750 Las Vegas Paving Corporation 12/10/2019 12/10/2019 12/10/2019 12/23/2019 1/8/2020 29 193.81 5,620.49 APNPC 00921711 0000067185 Cintas Corporation No 2 12/17/2019 12/17/2019 12/17/2019 12/24/2019 1/15/2020 29 177.08 5,135.32 APNPC 00919612 0000068409 BrandSafway Services LLC 11/10/2019 11/16/2019 11/21/2019 12/6/2019 12/19/2019 36 1,831.44 65,931.84 APNPC 00920247 0000062820 Tyndale Company 11/30/2019 11/30/2019 12/6/2019 12/11/2019 1/2/2020 33 88.88 2,933.04 APNPC 00921387 0000062820 Tyndale Company 12/2/2019 12/2/2019 12/14/2019 12/21/2019 1/10/2020 39 1,392.97 54,325.83 APNPC 00918644 0000065850 The W.W. Williams Company LLC 6/4/2019 6/4/2019 6/17/2019 12/1/2019 12/2/2019 181 399.00 72,219.00 APNPC 00919672 0000058591 Western Elite 2/16/2019 2/16/2019 2/16/2019 12/6/2019 12/6/2019 293 300.00 87,900.00 APNPC 00919244 0000012190 Praxair Distribution Inc 10/20/2019 11/22/2019 11/22/2019 12/4/2019 12/19/2019 44 27.28 1,186.68

Page 141 of 247 Exhibit Walker-Direct-2 Page 15 of 30

Nevada Power Company d/b/a NV Energy Schedule VII Labor Lead Days Lead Lag Study Payroll PPE January 1, 2019 - December 31, 2019

Pay Payment Total Lead Weighted Lead Amount % of Gross Method of Payment Period Date Days Days

Total Gross Payroll $ 172,706,982 STIP 1 (per combined payroll report) 9,676,989 7 4 - - Vacation1 (per combined payroll report) 14,151,989 7 4 - -

Detailed Deductions: Garnishments 215,296 0.7% A/P Check After Payroll/Direct Deposit - - - - 401K Loan1 MPAT SPP/NPC 550,667 1.9% Wire Transfer After Payroll 14 4 18 0.06 401K Loan2 MPAT SPP/NPC 488,108 1.7% Wire Transfer After Payroll 14 4 18 0.05 401K Loan3 MPAT SPP 406,255 1.4% Wire Transfer After Payroll 14 4 18 0.04 Medical - IBEW396 1,972,492 6.7% Wire Transfer Trust Funds Monthly 14 4 18 0.21 Medical - MPAT 1,506,276 5.1% Wire Transfer Trust Funds Monthly 14 4 18 0.16 HLI Credit (769,335) -2.6% Wire Transfer Monthly 14 4 18 (0.08) Voluntary Hospital Deductions 35,966 0.1% Wire Transfer Monthly 14 4 18 - 401K Loan1 BU NPC 1,065,493 3.6% Wire Transfer Monthly 14 4 18 0.11 401K Loan2 BU NPC 949,754 3.2% Wire Transfer Monthly 14 4 18 0.10 Dental - MPAT 297,706 1.0% A/P Check 1x Per Month 1st of Month 14 4 18 0.03 Supplemental Life L396 336,859 1.1% A/P Check 1x Per Month 1st of Month 14 4 18 0.04 Supplemental Life MPAT/L1245 322,159 1.1% A/P Check 1x Per Month 1st of Month 14 4 18 0.03 Child Life MPAT/L1245 1,365 0.0% Wire Transfer Monthly 14 4 18 - Spouse Life MPAT/L1245 68,947 0.2% Wire Transfer Monthly 14 4 18 0.01 Child Life L396 1,561 0.0% Payroll Check 14 4 18 - Spouse Life L396 64,155 0.2% Wire Transfer After Payroll 14 4 18 0.01 Supplemental Life MPAT Exe 18,327 0.1% A/P Check After Payroll 14 4 18 - Spouse Life MPAT Exe 3,245 0.0% Wire Transfer After Payroll 14 4 18 - Child Life MPAT Exe 56 0.0% Wire Transfer After Payroll 14 4 18 - Supplemental AD&D 42,053 0.1% A/P Check After Payroll 14 4 18 - Long Term Disability IBEW396 293,056 1.0% A/P Check After Payroll 14 4 18 0.03 Vision - MPAT 51,975 0.2% A/P Check After Payroll 14 4 18 0.01 Tuition Payback 1,612 0.0% A/P Check After Payroll 7 4 11 - Health Savings Account EE 1,030,296 3.5% A/P Check After Payroll 7 4 11 0.07 NVE PAC 28,126 0.1% Kept in Company Account 14 4 18 - Dependent Care FSA 123,367 0.4% A/P Check After Payroll 7 4 11 0.01 FSA Dependent Care IBEW 396 22,262 0.1% A/P Check After Payroll 7 4 11 - FSA Health Care 161,995 0.6% Wire Transfer After Payroll 7 4 11 0.01 FSA Health Care IBEW 396 73,815 0.3% Wire Transfer After Payroll 7 4 11 - IBEW396 1.75 x hrly rate + $0 18,082 0.1% Wire Transfer After Payroll 7 4 11 - IBEW396 BA Member 438,547 1.5% A/P Check Monthly 7 4 11 0.03 IBEW396 A Member 225,391 0.8% A/P Check Monthly 7 4 11 0.01 UWay - Flat Amt - All PPE 296,460 1.0% Wire Transfer Monthly 14 4 18 0.03 UWay - Flat Amt - 1st PPE 2,515 0.0% A/P Check After Payroll 14 4 18 - UWay 1.25% Annual Base-All PPE - 0.0% A/P Check Monthly 14 4 18 - UWay .58% Annual Base-All PPE - 0.0% Wire Transfer After Payroll 14 4 18 - UWay .38% Annual Base-All PPE - 0.0% Wire Transfer After Payroll 14 4 18 - 401(k) Restoration Plan 82,000 0.3% Wire Transfer After Payroll 14 4 18 0.01 Credit Union NPC 2,265,354 7.7% Payroll Check (used to payback emp) 7 4 11 0.14 Credit Union SPPC 82,993 0.3% Payroll Check 14 4 18 0.01 401K Post - IBEW396 873,900 3.0% Wire Transfer After Payroll 14 4 18 0.09 401K Post - MPAT 220,099 0.7% Wire Transfer After Payroll 14 4 18 0.02 401(k) Contribution 15,164,809 51.5% Wire Transfer Trust Funds Monthly 14 4 18 1.58 401(k) Restoration Plan % 102,107 0.3% Wire Transfer Monthly 14 4 18 0.01 401(k) Rest Plan - STIP 59,019 0.2% Wire Transfer After Payroll (not used) - - Metlife Products 188,372 0.6% A/P Check After Payroll 7 4 11 0.01 Metlife Pet 8,882 0.0% A/P Check After Payroll 7 4 11 - Life Acct MPAT Exe 1,080 0.0% A/P Check After Payroll (not used) 7 4 11 - Nev Prepaid Tuition 7,524 0.0% Wire Transfer After Payroll 14 4 18 - Metlife Legal Assistance 38,838 0.1% Wire Transfer After Payroll 7 4 11 - Misc Deduction 2,919 0.0% Wire Transfer After Payroll 7 4 11 -

Total Deductions 29,442,800 100.0% 2.84 29,442,800

Detailed Taxes: OASDI-EE 9,152,114 27.3% Wire transfer 7 4 11 0.58 Medicare EE 2,435,538 7.3% Wire transfer 7 4 11 0.16 Federal/State Withholding 21,975,685 65.5% Wire transfer 7 4 11 1.40 Total Employee Taxes 33,563,337 100.0% 2.14 33,563,337

Net Payroll (excluding STIP & vacation listed above) 85,871,868 7 4 11 5.47

Total Gross Payroll $ 172,706,982 10.45

1 Note: STIP and vacation are treated as an Other Deductions to rate base.

Page 142 of 247 Exhibit Walker-Direct-2 Page 16 of 30

Nevada Power Company d/b/a NV Energy Schedule VIII Mill Tax Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Julian Dates Mill Tax Payment Payment End of From To Lag Days Dollar Days Payment Diff Midpoint Lag Days Accrued Amount Date Period 01/01/19 01/31/19 658,495 658,495 08/01/19 197.5 $ 130,052,820.43 19213 19031 182 15.5 197.5 02/01/19 02/28/19 658,495 658,495 08/01/19 168.5 110,956,456.93 19213 19059 154 14.5 168.5 03/01/19 03/31/19 658,495 658,495 08/01/19 138.5 91,201,598.13 19213 19090 123 15.5 138.5 04/01/19 04/30/19 658,495 658,495 10/01/19 169.0 111,285,704.57 19274 19120 154 15.0 169.0 05/01/19 05/31/19 658,495 658,495 10/01/19 138.5 91,201,598.13 19274 19151 123 15.5 138.5 06/01/19 06/30/19 658,495 658,495 10/01/19 108.0 71,117,491.68 19274 19181 93 15.0 108.0 07/01/19 07/31/19 658,495 658,495 12/31/19 168.5 110,956,456.93 19365 19212 153 15.5 168.5 08/01/19 08/31/19 658,495 658,495 12/31/19 137.5 90,543,102.83 19365 19243 122 15.5 137.5 09/01/19 09/30/19 658,495 658,495 12/31/19 107.0 70,458,996.39 19365 19273 92 15.0 107.0 10/01/19 10/31/19 658,495 658,495 04/01/20 168.5 110,956,456.93 20092 19304 153 15.5 168.5 11/01/19 11/30/19 658,495 658,495 04/01/20 138.0 90,872,350.48 20092 19334 123 15.0 138.0 12/01/19 12/31/19 658,495 658,495 04/01/20 107.5 70,788,244.03 20092 19365 92 15.5 107.5

7,901,944 $ 1,150,391,277.46 Lag Days 145.58

Page 143 of 247 Exhibit Walker-Direct-2 Page 17 of 30

Nevada Power Company d/b/a NV Energy Schedule IX(a) Possessory Interest Tax Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Possessory Julian Dates Interest Tax Payment Payment End of From To Lag Days Dollar Days Payment Diff Midpoint Lag Days Accrued Amount Date Period 01/01/19 01/31/19 15,338 15,812 05/15/19 119.50 $ 1,889,534.00 19135 19031 104 15.5 119.5 02/01/19 02/28/19 15,338 15,812 05/15/19 90.50 1,430,986.00 19135 19059 76 14.5 90.5 03/01/19 03/31/19 15,338 15,812 05/15/19 60.50 956,626.00 19135 19090 45 15.5 60.5 04/01/19 04/30/19 15,338 15,812 05/15/19 30.00 474,360.00 19135 19120 15 15.0 30.0 05/01/19 05/31/19 15,338 15,812 05/15/19 (0.50) (7,906.00) 19135 19151 (16) 15.5 (0.5) 06/01/19 06/30/19 15,338 15,812 05/15/19 (31.00) (490,172.00) 19135 19181 (46) 15.0 (31.0) 07/01/19 07/31/19 15,338 14,865 11/15/19 122.50 1,820,934.66 19319 19212 107 15.5 122.5 08/01/19 08/31/19 15,338 14,865 11/15/19 91.50 1,360,126.71 19319 19243 76 15.5 91.5 09/01/19 09/30/19 15,338 14,865 11/15/19 61.00 906,751.14 19319 19273 46 15.0 61.0 10/01/19 10/31/19 15,338 14,865 11/15/19 30.50 453,375.57 19319 19304 15 15.5 30.5 11/01/19 11/30/19 15,338 14,865 11/15/19 - - 19319 19334 (15) 15.0 - 12/01/19 12/31/19 15,338 14,865 11/15/19 (30.50) (453,375.57) 19319 19365 (46) 15.5 (30.5)

184,061 $ 8,341,240.51 Lag Days 45.32

Page 144 of 247 Exhibit Walker-Direct-2 Page 18 of 30

Nevada Power Company d/b/a NV Energy Schedule IX(b) Possessory Interest Tax Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Possessory Julian Dates Interest Tax Payment Payment End of From To Lag Days Dollar Days Payment Diff Midpoint Lag Days Accrued Amount Date Period 01/01/19 01/31/19 29,641 29,641 11/01/19 289.50 $ 8,581,069.50 19305 19031 274 15.5 289.5 02/01/19 02/28/19 29,641 29,641 11/01/19 260.50 7,721,480.50 19305 19059 246 14.5 260.5 03/01/19 03/31/19 29,641 29,641 11/01/19 230.50 6,832,250.50 19305 19090 215 15.5 230.5 04/01/19 04/30/19 29,641 29,641 11/01/19 200.00 5,928,200.00 19305 19120 185 15.0 200.0 05/01/19 05/31/19 29,641 29,641 11/01/19 169.50 5,024,149.50 19305 19151 154 15.5 169.5 06/01/19 06/30/19 29,641 29,641 11/01/19 139.00 4,120,099.00 19305 19181 124 15.0 139.0 07/01/19 07/31/19 29,641 29,641 05/01/20 290.50 8,610,710.50 20122 19212 275 15.5 290.5 08/01/19 08/31/19 29,641 29,641 05/01/20 259.50 7,691,839.50 20122 19243 244 15.5 259.5 09/01/19 09/30/19 29,641 29,641 05/01/20 229.00 6,787,789.00 20122 19273 214 15.0 229.0 10/01/19 10/31/19 29,641 29,641 05/01/20 198.50 5,883,738.50 20122 19304 183 15.5 198.5 11/01/19 11/30/19 29,641 29,641 05/01/20 168.00 4,979,688.00 20122 19334 153 15.0 168.0 12/01/19 12/31/19 29,641 29,641 05/01/20 137.50 4,075,637.50 20122 19365 122 15.5 137.5

355,692 $ 76,236,652.00 Lag Days 214.33

Page 145 of 247 Exhibit Walker-Direct-2 Page 19 of 30

Nevada Power Company d/b/a NV Energy Schedule X Nevada use Tax On P Card Purchases Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Use Tax on Julian Dates P Cards Payment Payment End of From To Lag Days Dollar Days Payment Diff Midpoint Lag Days Accrued Amount Date Period 01/01/19 01/31/19 682 682 01/31/19 15.5 $ 10,568.68 19031 19031 - 15.5 15.5 02/01/19 02/28/19 634 634 02/28/19 14.5 9,193.15 19059 19059 - 14.5 14.5 03/01/19 03/31/19 438 438 03/31/19 15.5 6,790.09 19090 19090 - 15.5 15.5 04/01/19 04/30/19 432 432 04/30/19 15.0 6,486.90 19120 19120 - 15.0 15.0 05/01/19 05/31/19 627 627 05/31/19 15.5 9,716.95 19151 19151 - 15.5 15.5 06/01/19 06/30/19 588 588 06/30/19 15.0 8,826.90 19181 19181 - 15.0 15.0 07/01/19 07/31/19 362 362 07/31/19 15.5 5,603.41 19212 19212 - 15.5 15.5 08/01/19 08/31/19 573 573 08/31/19 15.5 8,885.53 19243 19243 - 15.5 15.5 09/01/19 09/30/19 499 499 09/30/19 15.0 7,485.45 19273 19273 - 15.0 15.0 10/01/19 10/31/19 634 634 10/31/19 15.5 9,833.67 19304 19304 - 15.5 15.5 11/01/19 11/30/19 965 965 11/30/19 15.0 14,469.75 19334 19334 - 15.0 15.0 12/01/19 12/31/19 1,565 1,565 12/31/19 15.5 24,260.60 19365 19365 - 15.5 15.5

8,000 $ 122,121.08 Lag Days 15.27

Page 146 of 247 Exhibit Walker-Direct-2 Page 20 of 30

Nevada Power Company d/b/a NV Energy Schedule XI Arizona Property Taxes Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Julian Dates Nevada Payment Payment End of From To Property Tax Lag Days Dollar Days Payment Diff Midpoint Lag Days Amount Date Period Accrued 01/01/19 01/31/19 63,132 63,132 11/01/19 289.5 $ 18,276,714.00 19305 19031 274 15.5 289.5 02/01/19 02/28/19 63,132 63,132 11/01/19 260.5 16,445,886.00 19305 19059 246 14.5 260.5 03/01/19 03/31/19 63,132 63,132 11/01/19 230.5 14,551,926.00 19305 19090 215 15.5 230.5 04/01/19 04/30/19 63,132 63,132 11/01/19 200.0 12,626,400.00 19305 19120 185 15.0 200.0 05/01/19 05/31/19 63,132 63,132 11/01/19 169.5 10,700,874.00 19305 19151 154 15.5 169.5 06/01/19 06/30/19 63,132 63,132 11/01/19 139.0 8,775,348.00 19305 19181 124 15.0 139.0 07/01/19 07/31/19 63,132 63,132 05/01/20 290.5 18,339,846.00 20122 19212 275 15.5 290.5 08/01/19 08/31/19 63,132 63,132 05/01/20 259.5 16,382,754.00 20122 19243 244 15.5 259.5 09/01/19 09/30/19 63,132 63,132 05/01/20 229.0 14,457,228.00 20122 19273 214 15.0 229.0 10/01/19 10/31/19 63,132 63,132 05/01/20 198.5 12,531,702.00 20122 19304 183 15.5 198.5 11/01/19 11/30/19 63,132 63,132 05/01/20 168.0 10,606,176.00 20122 19334 153 15.0 168.0 12/01/19 12/31/19 63,132 63,132 05/01/20 137.5 8,680,650.00 20122 19365 122 15.5 137.5

757,584 $ 162,375,504.00 Lag Days 214.33

Page 147 of 247 Exhibit Walker-Direct-2 Page 21 of 30

Nevada Power Company d/b/a NV Energy Schedule XII Nevada Unemployment Tax - Company Portion Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Julian Dates Number of Payment End of From To Midpoint Lag Days Payment Diff Midpoint Lag Days Days Date Period 01/01/19 03/31/19 90 45.0 04/30/19 75.0 19120 19090 30 45.0 75.0 04/01/19 06/30/19 91 45.5 07/31/19 76.5 19212 19181 31 45.5 76.5 07/01/19 09/30/19 92 46.0 10/31/19 77.0 19304 19273 31 46.0 77.0 10/01/19 12/31/19 92 46.0 01/31/20 77.0 20031 19365 31 46.0 77.0

Average Lag Days 76.38

Payment due the last business day of the month following the end of the quarter.

Page 148 of 247 Exhibit Walker-Direct-2 Page 22 of 30

Nevada Power Company d/b/a NV Energy Schedule XIII Modified Business Tax (MBT) Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Business Julian Dates Payment Payment End of From To Tax Accrued Lag Days Dollar Days Payment Diff Midpoint Lag Days Amount Date Period 01/01/19 01/31/19 37,547 35,528 04/30/19 104.5 $ 3,712,700.09 19120 19031 89 15.5 104.5 02/01/19 02/28/19 37,547 35,528 04/30/19 75.5 2,682,381.40 19120 19059 61 14.5 75.5 03/01/19 03/31/19 37,547 35,528 04/30/19 45.5 1,616,534.49 19120 19090 30 15.5 45.5 04/01/19 04/30/19 37,547 114,659 07/31/19 107.0 12,268,504.74 19212 19120 92 15.0 107.0 05/01/19 05/31/19 37,547 114,659 07/31/19 76.5 8,771,407.60 19212 19151 61 15.5 76.5 06/01/19 06/30/19 37,547 114,659 07/31/19 46.0 5,274,310.45 19212 19181 31 15.0 46.0 07/01/19 07/31/19 37,547 - 10/31/19 107.5 - 19304 19212 92 15.5 107.5 08/01/19 08/31/19 37,547 - 10/31/19 76.5 - 19304 19243 61 15.5 76.5 09/01/19 09/30/19 37,547 - 10/31/19 46.0 - 19304 19273 31 15.0 46.0 10/01/19 10/31/19 37,547 - 01/31/20 107.5 - 20031 19304 92 15.5 107.5 11/01/19 11/30/19 37,547 - 01/31/20 77.0 - 20031 19334 62 15.0 77.0 12/01/19 12/31/19 37,547 - 01/31/20 46.5 - 20031 19365 31 15.5 46.5

450,561 $ 34,325,838.77 Lag Days 76.18

Page 149 of 247 Exhibit Walker-Direct-2 Page 23 of 30

Nevada Power Company d/b/a NV Energy Schedule XIV FICA Lead Lag Study January 1, 2019 - December 31, 2019

Pay Period Payment Date Total Lag Days 7.0 4.0 11.0

Page 150 of 247 Exhibit Walker-Direct-2 Page 24 of 30

Nevada Power Company d/b/a NV Energy Schedule XV Franchise Tax Nevada Counties Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Julian Dates Nev Payment Payment End of From To Days Dollar Days Payment Diff Midpoint Days Franchise Amount Date Period 01/01/19 01/31/19 191,680 191,680 07/07/20 538.5 $ 103,219,635.13 20189 19031 523 15.5 538.5 02/01/19 02/28/19 191,680 191,680 07/07/20 509.5 97,660,917.54 20189 19059 495 14.5 509.5 03/01/19 03/31/19 191,680 191,680 07/07/20 479.5 91,910,520.04 20189 19090 464 15.5 479.5 04/01/19 04/30/19 191,680 191,680 07/07/20 449.0 86,064,282.58 20189 19120 434 15.0 449.0 05/01/19 05/31/19 191,680 191,680 07/07/20 418.5 80,218,045.13 20189 19151 403 15.5 418.5 06/01/19 06/30/19 191,680 191,680 07/07/20 388.0 74,371,807.67 20189 19181 373 15.0 388.0 07/01/19 07/31/19 191,680 191,680 07/07/20 357.5 68,525,570.21 20189 19212 342 15.5 357.5 08/01/19 08/31/19 191,680 191,680 07/07/20 326.5 62,583,492.79 20189 19243 311 15.5 326.5 09/01/19 09/30/19 191,680 191,680 07/07/20 296.0 56,737,255.33 20189 19273 281 15.0 296.0 10/01/19 10/31/19 191,680 191,680 07/07/20 265.5 50,891,017.88 20189 19304 250 15.5 265.5 11/01/19 11/30/19 191,680 191,680 07/07/20 235.0 45,044,780.42 20189 19334 220 15.0 235.0 12/01/19 12/31/19 191,680 191,680 07/07/20 204.5 39,198,542.96 20189 19365 189 15.5 204.5

2,300,159 $ 856,425,867.68 Lag Days 372.33

Page 151 of 247 Exhibit Walker-Direct-2 Page 25 of 30

Nevada Power Company d/b/a NV Energy Schedule XVI Federal Income Taxes Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Number of Payment Julian Dates Estimated Total From To Days Midpoint Date Payment 12/31/2018 Diff lag days Percentage Lag Days 01/01/19 12/31/19 365 182.5 04/15/19 19105 18365 105 (77.50) 25% (19.38) 01/01/19 12/31/19 365 182.5 06/15/19 19166 18365 166 (16.5) 25% (4.13) 01/01/19 12/31/19 365 182.5 09/15/19 19258 18365 258 75.5 25% 18.88 01/01/19 12/31/19 365 182.5 12/15/19 19349 18365 349 166.5 25% 41.63

Lag Days = Midpoint - (number of days - Julian date (payment) Lag Days 37.00

Page 152 of 247 Exhibit Walker-Direct-2 Page 26 of 30

Nevada Power Company d/b/a NV Energy Schedule XVII Long -Term Debt Lead Lag Study January 1, 2019 - December 31, 2019

Interest Amount Payment Weighted Outstanding Days Midpoint Average General and refunding mortgage bonds $ 2,291,300 180.00 90.00 86.51 Pollution control refunding revenue bonds Series 2017, 2017A & 2017B 92,500 180.00 90.00 3.49 Revolving credit advances (1) - 30.00 15.00 - $ 2,383,800 Lag Days 90.00

(1) 2019 Month-end revolving credit advances were as follows:

Jan-19 $ - Feb-19 - Mar-19 - Apr-19 - May-19 - Jun-19 - Jul-19 - Aug-19 - Sep-19 - Oct-19 - Nov-19 - Dec-19 - Average $ -

Page 153 of 247 Exhibit Walker-Direct-2 Page 27 of 30

Nevada Power Company d/b/a NV Energy Schedule XVIII Customer Deposits Lead Lag Study January 1, 2019 - December 31, 2019

Per Policy Calculation of the Customer Deposits Lag Days Days in the year (using 360 convention) 360 Divided by number of refunds per year 2 Divided by 2 to obtain midpoint of refund period 2 Lag Days - Annual Portion 90

Days in the month (using 360 convention) 30 Divided by 2 to obtain midpoint of refund period 2 Lag Days - Month Portion 15

Total Lag Days 105.00

Page 154 of 247 Exhibit Walker-Direct-2 Page 28 of 30

Nevada Power Company d/b/a NV Energy Schedule XIX Commerce Tax Lead Lag Study January 1, 2019 - December 31, 2019

Accrual Period Business Julian Dates Tax Payment Payment End of From To Lag Days Dollar Days Payment Diff Midpoint Lag Days Accrued Amount Date Period 01/01/19 01/31/19 242,987 242,987 08/15/19 211.5 $ 51,391,666.43 19227 19031 196 15.5 211.5 02/01/19 02/28/19 242,987 242,987 08/15/19 182.0 44,223,561.66 19227 19059 168 14.0 182.0 03/01/19 03/31/19 242,987 242,987 08/15/19 152.5 37,055,456.88 19227 19090 137 15.5 152.5 04/01/19 04/30/19 242,987 242,987 08/15/19 122.0 29,644,365.51 19227 19120 107 15.0 122.0 05/01/19 05/31/19 242,987 242,987 08/15/19 91.5 22,233,274.13 19227 19151 76 15.5 91.5 06/01/19 06/30/19 242,987 242,987 08/15/19 61.0 14,822,182.75 19227 19181 46 15.0 61.0 07/01/19 07/31/19 229,168 229,168 08/15/20 396.5 90,864,979.83 20228 19212 381 15.5 396.5 08/01/19 08/31/19 229,168 229,168 08/15/20 365.5 83,760,782.17 20228 19243 350 15.5 365.5 09/01/19 09/30/19 229,168 229,168 08/15/20 335.0 76,771,168.33 20228 19273 320 15.0 335.0 10/01/19 10/31/19 229,168 229,168 08/15/20 304.5 69,781,554.50 20228 19304 289 15.5 304.5 11/01/19 11/30/19 229,168 229,168 08/15/20 274.0 62,791,940.67 20228 19334 259 15.0 274.0 12/01/19 12/31/19 229,168 229,168 08/15/20 243.5 55,802,326.83 20228 19365 228 15.5 243.5

2,832,926 $ 639,143,259.69 Lag Days 225.61

Page 155 of 247 Exhibit Walker-Direct-2 Page 29 of 30

Nevada Power Company d/b/a NV Energy Schedule XX Leases Lead Lag Study January 1, 2019 - December 31, 2019

Total Adjusted Amount Total Dollar Days $ 50,248,319.08 $ 608,724,749.23

Disallowance or Name Total Adjusted Amount Service Date 1 Service Date 2 Payment Date Lead or Lag Days Dollar Days allowed % Beltway $ 340,875.64 42,365.63 $ 298,510.01 1/1/2019 1/31/2019 01/09/2019 (7) $ (2,089,570.07) Beltway 340,875.64 42,253.53 $ 298,622.11 2/1/2019 2/28/2019 02/07/2019 (8) (2,239,665.83) Beltway 340,875.64 42,140.50 $ 298,735.14 3/1/2019 3/31/2019 03/07/2019 (9) (2,688,616.26) Beltway 340,875.64 42,026.53 $ 298,849.11 4/1/2019 4/30/2019 04/04/2019 (12) (3,436,764.77) Beltway 340,875.64 41,911.62 $ 298,964.02 5/1/2019 5/31/2019 05/03/2019 (13) (3,886,532.26) Beltway 340,875.64 41,795.76 $ 299,079.88 6/1/2019 6/30/2019 06/06/2019 (10) (2,841,258.86) Beltway 340,875.64 41,678.94 $ 299,196.70 7/1/2019 7/31/2019 07/03/2019 (13) (3,889,557.10) Beltway 340,875.64 41,561.15 $ 299,314.49 8/1/2019 8/31/2019 08/07/2019 (9) (2,693,830.41) Beltway 340,875.64 41,442.39 $ 299,433.25 9/1/2019 9/30/2019 09/09/2019 (7) (1,946,316.13) Beltway 340,875.64 41,322.64 $ 299,553.00 10/1/2019 10/31/2019 10/02/2019 (14) (4,193,742.00) Beltway 361,149.33 41,201.90 $ 319,947.43 11/1/2019 11/30/2019 11/07/2019 (9) (2,719,553.16) Beltway 361,149.33 41,060.68 $ 320,088.65 12/1/2019 12/31/2019 12/04/2019 (12) (3,841,063.80) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 2/1/2019 2/28/2019 01/27/2019 (19) (176,120.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 3/1/2019 3/31/2019 02/25/2019 (19) (180,880.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 4/1/2019 4/30/2019 03/25/2019 (22) (204,680.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 5/1/2019 5/31/2019 04/26/2019 (20) (190,400.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 6/1/2019 6/30/2019 05/29/2019 (18) (166,600.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 7/1/2019 7/31/2019 06/26/2019 (20) (190,400.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 8/1/2019 8/31/2019 07/26/2019 (21) (199,920.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 9/1/2019 9/30/2019 08/26/2019 (21) (195,160.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 10/1/2019 10/31/2019 09/25/2019 (21) (199,920.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 11/1/2019 11/30/2019 10/25/2019 (22) (204,680.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 12/1/2019 12/31/2019 11/25/2019 (21) (199,920.00) Tierra Partners III LLC, Diablo 9,520.00 - $ 9,520.00 1/1/2020 1/31/2020 12/27/2019 (20) (190,400.00) Pearson 1,544,500.00 376,858.00 $ 1,167,642.00 8/1/2018 1/31/2019 01/30/2019 91 105,671,601.00 Pearson 1,544,500.00 376,858.00 $ 1,167,642.00 2/1/2019 7/31/2019 07/31/2019 90 105,087,780.00 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 1/1/2019 1/31/2019 01/27/2019 11 39,165,018.20 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 2/1/2019 2/28/2019 02/25/2019 11 37,384,790.10 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 3/1/2019 3/31/2019 03/25/2019 9 32,044,105.80 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 4/1/2019 4/30/2019 04/26/2019 11 37,384,790.10 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 5/1/2019 5/31/2019 05/29/2019 13 46,285,930.60 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 6/1/2019 6/30/2019 06/26/2019 11 37,384,790.10 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 7/1/2019 7/31/2019 07/26/2019 10 35,604,562.00 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 8/1/2019 8/31/2019 08/26/2019 10 35,604,562.00 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 9/1/2019 9/30/2019 09/25/2019 10 33,824,333.90 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 10/1/2019 10/31/2019 10/25/2019 9 32,044,105.80 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 11/1/2019 11/30/2019 11/25/2019 10 33,824,333.90 Great Basin Transmission - Online 3,650,487.05 90,030.85 $ 3,560,456.20 12/1/2019 12/31/2019 12/27/2019 11 39,165,018.20 Great Basin Transmission - Online 27,649.16 - $ 27,649.16 1/1/2019 1/31/2019 01/28/2019 12 331,789.92 Great Basin Transmission - Online 158,323.17 - $ 158,323.17 2/1/2019 2/28/2019 02/26/2019 12 1,820,716.46 Great Basin Transmission - Online 27,473.41 - $ 27,473.41 3/1/2019 3/31/2019 03/28/2019 12 329,680.92 Great Basin Transmission - Online 27,385.54 - $ 27,385.54 4/1/2019 4/30/2019 04/23/2019 8 205,391.55 Great Basin Transmission - Online 27,491.72 - $ 27,491.72 5/1/2019 5/31/2019 05/29/2019 13 357,392.36 Great Basin Transmission - Online 27,403.24 - $ 27,403.24 6/1/2019 6/30/2019 06/27/2019 12 315,137.26 Great Basin Transmission - Online 27,314.76 - $ 27,314.76 7/1/2019 7/31/2019 07/29/2019 13 355,091.88 Great Basin Transmission - Online 34,095.00 - $ 34,095.00 8/1/2019 8/31/2019 08/27/2019 11 375,045.00 Great Basin Transmission - Online 33,984.66 - $ 33,984.66 9/1/2019 9/30/2019 09/24/2019 9 288,869.61 Great Basin Transmission - Online 33,874.32 - $ 33,874.32 10/1/2019 10/31/2019 10/24/2019 8 270,994.56 Great Basin Transmission - Online 34,960.80 - $ 34,960.80 11/1/2019 11/30/2019 12/05/2019 20 681,735.60 Great Basin Transmission - Online 34,847.92 - $ 34,847.92 12/1/2019 12/31/2019 12/20/2019 4 139,391.68 Altec Capital Leasing - Fleet 95,245.40 28.37% $ 27,021.12 2/1/2019 2/28/2019 01/29/2019 (17) (445,848.48) Altec Capital Leasing - Fleet 89,643.74 25.94% $ 23,253.37 3/1/2019 3/31/2019 02/26/2019 (18) (418,560.67) Altec Capital Leasing - Fleet 112,138.06 25.94% $ 29,088.34 4/1/2019 4/30/2019 03/27/2019 (20) (567,222.69) Altec Capital Leasing - Fleet 120,539.60 25.44% $ 30,665.29 5/1/2019 5/31/2019 04/25/2019 (21) (643,971.05) Altec Capital Leasing - Fleet 131,052.23 23.86% $ 31,263.82 6/1/2019 6/30/2019 05/29/2019 (18) (547,116.82) Altec Capital Leasing - Fleet 129,016.52 26.28% $ 33,906.56 7/1/2019 7/31/2019 06/25/2019 (21) (712,037.78) Altec Capital Leasing - Fleet 154,168.75 23.40% $ 36,081.67 8/1/2019 8/31/2019 07/26/2019 (21) (757,715.00) Altec Capital Leasing - Fleet 153,544.82 26.89% $ 41,283.22 9/1/2019 9/30/2019 08/27/2019 (20) (805,022.74) Altec Capital Leasing - Fleet 173,485.57 27.46% $ 47,639.31 10/1/2019 10/31/2019 09/25/2019 (21) (1,000,425.54) Altec Capital Leasing - Fleet 187,135.33 26.54% $ 49,666.13 11/1/2019 11/30/2019 10/28/2019 (19) (918,823.40) Altec Capital Leasing - Fleet 194,000.60 23.27% $ 45,148.40 12/1/2019 12/31/2019 11/22/2019 (24) (1,083,561.65) Altec Capital Leasing - Fleet 195,364.26 21.32% $ 41,651.93 1/1/2020 1/31/2020 12/19/2019 (28) (1,166,254.04) Citizens Asset Finance Inc - Fleet 13,883.62 28.37% $ 3,938.78 1/1/2019 1/31/2019 01/29/2019 13 51,204.18 Citizens Asset Finance Inc - Fleet 13,883.62 25.94% $ 3,601.38 2/1/2019 2/28/2019 02/26/2019 12 41,415.84 Citizens Asset Finance Inc - Fleet 7,526.76 25.94% $ 1,952.42 3/1/2019 3/31/2019 03/27/2019 11 21,476.66 Citizens Asset Finance Inc - Fleet 7,526.76 25.44% $ 1,914.81 4/1/2019 4/30/2019 04/25/2019 10 18,190.68 Citizens Asset Finance Inc - Fleet 7,526.74 23.86% $ 1,795.58 5/1/2019 5/31/2019 05/29/2019 13 23,342.53 Citizens Asset Finance Inc - Fleet 7,526.74 26.28% $ 1,978.09 6/1/2019 6/30/2019 06/25/2019 10 18,791.82 Citizens Asset Finance Inc - Fleet 7,526.74 23.40% $ 1,761.56 7/1/2019 7/31/2019 07/26/2019 10 17,615.59 Citizens Asset Finance Inc - Fleet 7,526.74 26.89% $ 2,023.70 8/1/2019 8/31/2019 08/27/2019 11 22,260.66 Citizens Asset Finance Inc - Fleet 7,526.74 27.46% $ 2,066.85 9/1/2019 9/30/2019 09/25/2019 10 19,635.08 Citizens Asset Finance Inc - Fleet 7,526.74 26.54% $ 1,997.61 10/1/2019 10/31/2019 10/28/2019 12 23,971.36 Citizens Asset Finance Inc - Fleet 1,192.71 23.27% $ 277.57 11/1/2019 11/30/2019 11/22/2019 7 1,804.21 Citizens Asset Finance Inc - Fleet 7,526.74 21.32% $ 1,604.71 12/1/2019 12/31/2019 12/23/2019 7 11,232.98 Enterprise FM Exchange Inc - Fleet 118,428.26 28.37% $ 33,598.10 1/1/2019 1/31/2019 01/06/2019 (10) (335,980.97) Enterprise FM Exchange Inc - Fleet 98,674.10 25.94% $ 25,595.82 2/1/2019 2/28/2019 02/04/2019 (11) (268,756.16) Enterprise FM Exchange Inc - Fleet 51,907.93 25.94% $ 13,464.79 3/1/2019 3/31/2019 03/06/2019 (10) (134,647.92)

Page 156 of 247 Exhibit Walker-Direct-2 Page 30 of 30

Enterprise FM Exchange Inc - Fleet 94,591.52 25.44% $ 24,064.09 4/1/2019 4/30/2019 04/03/2019 (13) (300,801.17) Enterprise FM Exchange Inc - Fleet 90,881.76 23.86% $ 21,680.75 5/1/2019 5/31/2019 05/02/2019 (14) (303,530.52) Enterprise FM Exchange Inc - Fleet 99,194.87 26.28% $ 26,069.20 6/1/2019 6/30/2019 05/30/2019 (17) (430,141.73) Enterprise FM Exchange Inc - Fleet 102,108.09 23.40% $ 23,897.39 7/1/2019 7/31/2019 07/03/2019 (13) (310,666.01) Enterprise FM Exchange Inc - Fleet 103,494.71 26.89% $ 27,826.37 8/1/2019 8/31/2019 08/01/2019 (15) (417,395.51) Enterprise FM Exchange Inc - Fleet 104,949.45 27.46% $ 28,819.22 9/1/2019 9/30/2019 08/29/2019 (18) (504,336.42) Enterprise FM Exchange Inc - Fleet 102,952.90 26.54% $ 27,323.93 10/1/2019 10/31/2019 10/03/2019 (13) (355,211.05) Enterprise FM Exchange Inc - Fleet 107,400.25 23.27% $ 24,994.51 11/1/2019 11/30/2019 10/31/2019 (16) (387,414.88) Enterprise FM Exchange Inc - Fleet 109,013.77 21.32% $ 23,241.89 12/1/2019 12/31/2019 12/04/2019 (12) (278,902.63) Konica Minolta Premier Finance 8,584.57 - $ 8,584.57 1/1/2019 1/31/2019 01/17/2019 1 8,584.57 Konica Minolta Premier Finance 7,922.00 - $ 7,922.00 2/1/2019 2/28/2019 02/13/2019 (2) (11,883.00) Konica Minolta Premier Finance 7,922.00 - $ 7,922.00 3/1/2019 3/31/2019 03/15/2019 (1) (7,922.00) Konica Minolta Premier Finance 10,925.75 - $ 10,925.75 4/1/2019 4/30/2019 04/17/2019 2 16,388.63 Konica Minolta Premier Finance 7,922.00 - $ 7,922.00 5/1/2019 5/31/2019 05/17/2019 1 7,922.00 Konica Minolta Premier Finance 7,922.00 - $ 7,922.00 6/1/2019 6/30/2019 06/14/2019 (2) (11,883.00) Konica Minolta Premier Finance 7,922.00 - $ 7,922.00 7/1/2019 7/31/2019 07/17/2019 1 7,922.00 Konica Minolta Premier Finance 8,584.57 - $ 8,584.57 8/1/2019 8/31/2019 08/16/2019 - - Konica Minolta Premier Finance 8,585.00 - $ 8,585.00 9/1/2019 9/30/2019 09/16/2019 1 4,292.50 Konica Minolta Premier Finance 7,922.00 - $ 7,922.00 10/1/2019 10/31/2019 10/16/2019 - - Konica Minolta Premier Finance 7,922.00 - $ 7,922.00 11/1/2019 11/30/2019 11/15/2019 (1) (3,961.00) Konica Minolta Premier Finance 8,584.57 - $ 8,584.57 12/1/2019 12/31/2019 12/17/2019 1 8,584.57 Pitney Bowes Inc 1,733.56 - $ 1,733.56 1/8/2019 4/7/2019 01/30/2019 (23) (39,005.10) Pitney Bowes Inc 1,825.83 - $ 1,825.83 4/8/2019 7/7/2019 03/29/2019 (55) (100,420.65) Pitney Bowes Inc 1,825.83 - $ 1,825.83 7/8/2019 10/7/2019 06/19/2019 (65) (117,766.04) Pitney Bowes Inc 1,825.83 - $ 1,825.83 10/8/2019 1/7/2020 09/20/2019 (64) (115,940.21) Pacific Office Automation 6,340.59 - $ 6,340.59 12/1/2018 12/31/2018 02/07/2019 53 336,051.27 Pacific Office Automation 6,340.59 - $ 6,340.59 1/1/2019 1/31/2019 03/21/2019 64 405,797.76 Pacific Office Automation 6,340.60 - $ 6,340.60 2/1/2019 2/28/2019 04/11/2019 56 351,903.30 Pacific Office Automation 8,628.58 - $ 8,628.58 3/1/2019 3/31/2019 05/09/2019 54 465,943.32 Pacific Office Automation 6,340.57 - $ 6,340.57 4/1/2019 4/30/2019 06/13/2019 59 370,923.35 Pacific Office Automation 6,340.62 - $ 6,340.62 5/1/2019 5/31/2019 07/23/2019 68 431,162.16 Pacific Office Automation 6,100.97 - $ 6,100.97 6/1/2019 6/30/2019 08/15/2019 61 369,108.69 Pacific Office Automation 6,340.59 - $ 6,340.59 7/1/2019 7/31/2019 09/10/2019 56 355,073.04 Pacific Office Automation 6,340.53 - $ 6,340.53 8/1/2019 8/31/2019 10/17/2019 62 393,112.86 Pacific Office Automation 6,340.60 - $ 6,340.60 9/1/2019 9/30/2019 11/20/2019 66 415,309.30 Pacific Office Automation 6,340.59 - $ 6,340.59 10/1/2019 10/31/2019 12/17/2019 62 393,116.58 Pacific Office Automation 6,340.58 - $ 6,340.58 11/1/2019 11/30/2019 01/23/2020 69 434,329.73

$ 54,836,641.42 $ 50,248,319.08 $ 608,724,749.23

Lag Days 12.11

Total Lag Days 12.11

Page 157 of 247 Page 158 of 247 Page 159 of 247

1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

2 Nevada Power Company d/b/a NV Energy Docket No. 20-06___ 3 2020 General Rate Case

4 Prepared Direct Testimony of

5 Bill Trigero

6 Revenue Requirement 7

8 1. Q. PLEASE STATE YOUR NAME, OCCUPATION, AND BUSINESS 9 ADDRESS.

10 A. My name is Bill Trigero. I am the Director, Regulatory Accounting, Revenue

11 Requirement, and FERC for Nevada Power Company d/b/a NV Energy 12 (“Nevada Power” or the “Company”) and Sierra Pacific Power Company d/b/a 13 NV Energy (“Sierra” together with Nevada Power, the “Companies”). I work d/b/a NV Energy 14 primarily out of the Companies’ offices at 6100 Neil Road in Reno, Nevada. I Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 am filing testimony in this proceeding on behalf of Nevada Power. and 16

17 2. Q. PLEASE DESCRIBE YOUR PROFESSIONAL BACKGROUND AND 18 EXPERIENCE. 19 A. I have been employed by Sierra for more than 35 years in various capacities. 20 My regulatory duties have included the preparation of embedded cost of 21 service and revenue requirements analysis, rate filings at the Federal Energy 22 Regulatory Commission (“FERC”), the preparation of monthly regulatory 23 earned rate of return reports, and revenue reporting. I have sponsored 24 testimony before the Public Utilities Commission of Nevada (“Commission”) 25 and the FERC. I graduated from the University of Nevada, Reno, with a 26 Bachelor of Science Degree in Accounting and have attended various utility 27

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1 industry sponsored seminars. Exhibit Trigero-Direct-1 contains a complete 2 statement of my qualifications. 3

4 3. Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY IN THIS

5 PROCEEDING? 6 A. The purpose of my testimony is to sponsor the following Statements and 7 Schedules:

8  Statement G - Summary of Rate Base. 9 • Schedule G-1 - Plant in Service Summary.

10 • Schedule G-2 - Accumulated Provision for Depreciation Summary.

11 • Schedule G-4 – Thirteen-Month Balances of Fuel, Materials and 12 Supplies, and Prepayments for the Test Period ended December 31, 13 2019. d/b/a NV Energy 14  Schedule G-5 – Calculation of Cash Working Capital for the Certification Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 Period ended May 31, 2020, and the Expected Change In Circumstance and 16 (“ECIC”) Period ending December 31, 2020.

17  Statement H – Summary of Results of Operations Before and After Rate 18 Adjustment for the Certification Period ended May 31, 2020, and the ECIC 19 Period ending December 31, 2020.

20  Schedule H-1 – Detail of Certification and ECIC Adjustments and Tax 21 Effects as Set Forth in Statement H.

22  Schedule H-CERT-01 – Summary of Certification Adjustments for the 23 Certification Period ended May 31, 2020.

24  Schedule H-CERT-02 – Present Rate Revenue Reconciliation for the Test 25 Period ended December 31, 2019, and for the Certification Period ended 26 May 31, 2020. 27

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1  Schedule H-CERT-03 – Fuel & Purchased Power Expense Annualization 2 for the Test Period ended December 31, 2019, and for the Certification 3 Period ended May 31, 2020.

4  Schedule H-CERT-04 – Cash Working Capital Calculation for the Test

5 Period ended December 31, 2019, and for the Certification Period ended 6 May 31, 2020.

7  Schedule H-CERT-05 – Mill Tax for the Test Period ended December 31, 8 2019, and for the Certification Period ended May 31, 2020.

9  Schedule H-CERT-06 – Interest Synchronization for the Test Period ended

10 December 31, 2019, and for the Certification Period ended May 31, 2020.

11  Schedule H-CERT-07 – Uncollectible Accounts Expense for the Test 12 Period ended December 31, 2019, and for the Certification Period ended 13 May 31, 2020. d/b/a NV Energy 14  Schedule H-CERT-21 - Miscellaneous Deferred Additions and Deductions Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 to Rate Base for the Test Period ended December 31, 2019, and for the and 16 Certification Period ended May 31, 2020.

17  Schedule H-CERT-39 – Gain on Sale of Harry Allen Transmission Assets. 18  Schedule H-CERT-41 – Pearson Adjustment for the Test Period ended 19 December 31, 2019, and for the Certification Period ended May 31, 2020.

20  Schedule H-CERT-42 – Adjustments to Operating Income for the Test 21 Period ended December 31, 2019, and the Certification Period ended May 22 31, 2020.

23  Schedule H-CERT-47 – Georgia-Pacific Impact Fee Regulatory Liability. 24  Schedule H-CERT-48 – Las Vegas Holdings Inc. Impact Fee 25 Annualization. 26 27

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1  Schedule H-EC-01 – Summary of ECIC Adjustments for the ECIC Period 2 ending December 31, 2020.

3  Schedule H-EC-02 – Present Rate Revenue Reconciliation for the 4 Certification Period ended May 31, 2020, and the ECIC Period ending

5 December 31, 2020.

6  Schedule H-EC-03 – Fuel & Purchased Power Expense Annualization for 7 the ECIC Period ending December 31, 2020.

8  Schedule H-EC-04 – Cash Working Capital Calculation Before and After 9 Rate Adjustment for the ECIC Period ending December 31, 2020.

10  Schedule H-EC-05 – Mill Tax for the ECIC Period ending December 31,

11 2020.

12  Schedule H-EC-06 – Interest Synchronization for the ECIC Period ending 13 December 31, 2020. d/b/a NV Energy 14  Schedule H-EC-07 – Uncollectible Accounts Expense for the ECIC Period Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 ending December 31, 2020. and 16  Schedule H-2 - Unbundled Revenue Requirement for the Certification 17 Period ended May 31, 2020, and the ECIC Period ending December 31, 18 2020.

19  Statement I - Summary of Results of Operations Before and After Rate 20 Adjustment as Adjusted through the Certification Period ended May 31, 21 2020, and the ECIC Period ending December 31, 2020

22  Statement J ECIC per Nevada Revised Statutes – Total Recorded, Present 23 Rate & Proposed Rate Revenues for the Test Period ended December 31, 24 2019.

25 • Schedule J-1 – Present & Proposed Rate Revenue: Base Tariff Energy 26 Rate (“BTER”) and Base Tariff General Rate (“BTGR”) for the Test 27

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1 Period ended December 31, 2019.

2 • Schedule J-2 – Present & Proposed Rate Revenue: BTGR for the Test 3 Period ended December 31, 2019.

4 • Schedule J-3 – Present & Proposed Rate Revenue: BTER and Deferred

5 Energy Accounting Adjustment (“DEAA”) for the Test Period ended 6 December 31, 2019.

7 • Schedule J-4 – Present & Proposed Rate Revenue: Renewable Energy 8 Program Rate or “REPR” for the Test Period ended December 31,

9 2019.

10 • Schedule J-5 – Recorded Revenue by Rate Schedule for the Test Period

11 ended December 31, 2019.

12 • Schedule J-6 – Operating Revenues, Sales and Customers for the 13 Twelve Months ended December 31, 2019. d/b/a NV Energy 14 • Schedule J-7 – Annualized kWh with Weather Normalization Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 Contribution for the Test Period ended December 31, 2019. and 16 • Schedule J-8 – Present Rate Revenue: Impact of Weather 17 Normalization for the Test Period ended December 31, 2019.

18 • Schedule J-9 – Summary of Recorded and Annualized Sales and Bills 19 for the Test Period ended December 31, 2019.

20 • Schedule J-10 – Present and Proposed Rate Revenue-EEPR and EEIR. 21 • Schedule J-11 – Typical Bill Calculation. 22  Statement J Proposed – Total Recorded, Present Rate & Proposed Rate 23 Revenues for the Test Period ended December 31, 2019. 24  Schedules J-1 through J-11 as listed above for the Statement J ECIC 25 per Nevada Revised Statute.

26  Statement K – Recorded Operations and Maintenance Expenses. 27

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1  Schedule K-1 – Recorded Operations and Maintenance Expenses by 2 Component.

3  Statement L – Depreciation and Amortization Expense by Expense 4 Account.

5  Statement N – Departmental and Jurisdictional Cost of Service Study for 6 the 12 Months ended December 31, 2019.

7  Schedule M-5 – Taxes Other Than Income for the Certification Period 8 ended May 31, 2020, and the ECIC Period ending December 31, 2020.

10 I also sponsor the following exhibits that are attached to my testimony:

11  Exhibit Trigero-Direct-1 – Statement of Qualifications 12  Exhibit Trigero-Direct-2 – Cost Allocation Methodology

13 d/b/a NV Energy 14 4. Q. PLEASE DESCRIBE STATEMENT G AND SCHEDULES G-1, G-2 Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 AND G-4. and 16 A. Statement G, prepared in accordance with Nevada Administrative Code 17 (“NAC”) § 703.2321, is a summary of total electric rate base components 18 recorded for the Test Period ended December 31, 2019, estimated for the 19 certification period ended May 31, 2020, and the ECIC Period ending 20 December 31, 2020. Schedule G-1 summarizes the balances and activity for 21 plant-in-service by functional area (production, transmission, distribution, 22 general, and intangible plant) recorded for the test period ended December 31, 23 2019, and estimated for the certification period ended May 31, 2020, and the 24 ECIC Period ending December 31, 2020. Schedule G-2 summarizes the 25 balances and activity in accumulated depreciation, also by functional area, 26 recorded through the test period ended December 31, 2019, and estimated for 27

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1 the certification period ended May 31, 2020, and the ECIC Period ending 2 December 31, 2020. Schedule G-4 summarizes the 13-month average balances 3 of fuel, materials and supplies and prepayments recorded for the test period 4 ended December 31, 2019.

6 5. Q. PLEASE DESCRIBE SCHEDULE G-5. 7 A. Schedule G-5 reflects recorded Nevada jurisdictional cash working capital for 8 the test period ended December 31, 2019, the estimated Nevada jurisdictional

9 cash working capital for the certification period ended May 31, 2020, and the

10 estimated Nevada jurisdictional cash working capital for the ECIC period

11 ending December 31, 2020. The calculations of cash working capital for the 12 test period, certification period and ECIC period, are supported by the lead/lag 13 study sponsored by Mr. Harold Walker III. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 6. Q. PLEASE DESCRIBE STATEMENT H – SUMMARY OF RESULTS OF and 16 OPERATIONS. 17 A. Statement H provides a summary of cost of service and revenue requirement. 18 Moving from left to right, page one summarizes by column:

19 b) Adjusted and allocated results of operations for the test period ended 20 December 31, 2019;

21 c) Certification adjustments; 22 d) ECIC adjustments; 23 e) The total certification and ECIC adjustments; 24 f) The impact of certification and ECIC adjustments on the earned rate of 25 return; 26 g) Additional revenue requirements after certification adjustments; 27

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1 h) Additional revenue requirements after ECIC adjustments; 2 i) Lenzie incentive; 3 j) Annualized fuel & purchased power revenue;

4 k) Revenue requirements for rate design; and,

5 l) Additional revenue requirement. 6 Pages two and four of Statement H contain the calculation of the Certification 7 and ECIC revenue requirement respectively. Page two starts with the recorded 8 and allocated results of operations and page four starts with the Certification

9 revenue requirement without incentives from page two, column (f). Pages

10 three and five show the Federal Income Tax (“FIT”) calculations associated

11 with the components listed above. For the first time, these pages also provide 12 an effective tax rate calculation. 13 d/b/a NV Energy 14 Page six of Statement H shows the total Company summary results of Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 operation including regulatory adjustments at December 31, 2019, with a and 16 breakdown between Nevada Power’s Retail and FERC jurisdictions from 17 Statement N. 18 19 As noted in Statement P, a presentation change was made to pages including 20 Amortization of the Investment Tax Credit (“ITC”). Where applicable, the 21 label now shows “Amortization of ITC/ Excess ADIT.” 22

23 7. Q. HOW WAS THE REVENUE REQUIREMENT CHANGE 24 REQUESTED IN THIS PROCEEDING CALCULATED? 25 A. Additional revenue requirement is the product of the proposed rate base times 26 the difference between the earned and requested rates of return times a “net to 27

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1 gross” multiplier. The “net to gross” multiplier is a measure of the impacts of 2 revenue-driven expenses such as FIT, mill tax and uncollectible accounts 3 expense. The need to synchronize interest expense and cash working capital 4 makes this calculation more complex. A change in revenue requirements

5 generates a change in FIT, mill tax and uncollectible expense, which in turn 6 causes a change in cash working capital, a component of rate base. 7 8 An adjustment to rate base changes revenue requirements directly by changing

9 the amount of income necessary to earn a specified rate of return, and

10 indirectly by changing synchronized interest expense and, therefore, FIT. As

11 a result, the Statement H model uses a series of synchronous formulas to 12 simultaneously calculate changes in all of the above components. Using the 13 resultant change in revenue requirements as a basis, expense and cash working d/b/a NV Energy 14 capital changes are recalculated to verify the accuracy of the formulas. Using Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 this Statement H presentation, the additional revenue requirement reflects the and 16 need for additional mill tax recovery, along with uncollectible accounts 17 expense and FIT. 18 19 This is the same calculation that has been utilized at Sierra for many years and 20 at Nevada Power in all general rate cases since Sierra Pacific Resources (now 21 NV Energy Inc.) acquired Nevada Power in 1999. 22

23 8. Q WHAT DOES THE INCENTIVE REVENUE REQUIREMENT IN 24 COLUMN I ON PAGE 1 OF STATEMENT H REPRESENT? 25 A. As provided for in NAC § 704.9484 and in compliance with the Commission’s 26 order in Docket No. 04-6030 (the second amendment to the Supply-Side 27

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1 Action Plan of Nevada Power’s 2003 integrated resource plan), the Company 2 applies a 3 percent enhanced return on equity to its Lenzie generating facility 3 (not including the purchase cost). Column (i) on page one of Statement H 4 represents the additional revenue requirement necessary to earn that enhanced

5 rate of return on the Lenzie facility. Net investment is measured as gross plant 6 less accumulated provision for depreciation and accumulated deferred income 7 taxes for liberalized depreciation. The revenue requirement change to achieve 8 the non-incentive base requested rate of return of 7.40 percent are shown on

9 page 1 at Columns (g) and (h). The rate of return including incentives is 7.44%

10 as shown in Column (l).

12 9. Q. PLEASE DESCRIBE SCHEDULE H-1. 13 A. Schedule H-1 is an eight-page exhibit that summarizes the certification and d/b/a NV Energy 14 ECIC adjustments in the H-CERT and H-EC schedules The adjustments are Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 grouped by major category (i.e., sales revenue, other operating revenue, other and 16 O&M expense, etc.), subtotaled and carried forward to Statement H. The 17 appropriate “CERT” or “EC” schedule for each adjustment is referenced in 18 Column (a) and the FIT impacts, if any, are shown in Columns (d) through (h).

20 10. Q. PLEASE DESCRIBE SCHEDULE H-CERT-01. 21 A. Schedule H-CERT-01 is a summary of all adjustments by account for the 22 certification period. This schedule provides the same cost of service detail as 23 Statement N and flows directly into Schedule H-2, Unbundled Revenue 24 Requirement. 25 26 27

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1 11. Q. PLEASE DESCRIBE SCHEDULE H-CERT-02. 2 A. Schedule H-CERT-02 shows the operation of the revenue reconciliation, 3 which details the component adjustments necessary to convert total recorded 4 and adjusted revenue to annualized present rate revenue applicable to general

5 rate recovery. The present rate revenues included in this reconciliation are 6 shown in Statement J. This schedule also summarizes revenue credits and 7 provides a place holder for updating these credits at certification. 8

9 12. Q. PLEASE DESCRIBE SCHEDULE H-CERT-03.

10 A. Schedule H-CERT-03 removes recorded fuel and purchased power costs from

11 operating expense. To arrive at a revenue requirement for rate design purposes, 12 fuel and purchased power costs are later added back at a level equivalent in 13 total to present BTER and R-BTER revenue. Schedule H-CERT-03 also d/b/a NV Energy 14 develops the adjusted fuel and purchased power expense for cash working Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 capital by applying the recorded component percentages to the present rate and 16 revenue. 17

18 13. Q. PLEASE DESCRIBE SCHEDULE H-CERT-04, CASH WORKING 19 CAPITAL CALCULATION. 20 A. Schedule H-CERT-04 shows the calculation of Cash Working Capital 21 Allowance after certification adjustments and after inclusion of the additional 22 revenue requirement necessary to allow the Company to earn its proposed rate 23 of return. The Cash Working Capital Allowance is calculated using the 24 methodology previously approved in Docket Nos. 08-12002 and 11-06006. 25 The presentation was updated in Docket No. 14-05004. For this proceeding, 26 we have updated the lag day calculations that were used in Docket No. 17- 27

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1 06003. The calculation of the individual lag days is addressed in the testimony 2 of Mr. Walker. 3

4 14. Q. PLEASE EXPLAIN SCHEDULE H-CERT-05, MILL TAX.

5 A. Schedule H-CERT-05 adjusts the recorded mill tax expense to a level 6 reflecting the assessment rate and present rate revenues at December 31, 2019, 7 as shown on Statement J. Because the mill tax expense is based on total 8 revenues,1 but is collected only in general rates, present rate BTER, DEAA,

9 R-BTER, REPR, TRED, EEPR Base and Amortization and EEIR Base and

10 Deferral revenues also are reflected in the mill tax calculations. For purposes

11 of calculating mill tax, TRED revenues are revenues paid out of the TRED 12 Trust, not those collected through the TRED rate. Similarly, the EEIR revenue 13 is the sum of the Base and Deferral, which are recognized as revenue. The d/b/a NV Energy 14 amortization of the EEIR deferral balance is not considered revenue for Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 purposes of mill tax assessment. Finally, Schedule H-CERT-05 reflects the and 16 mill tax expense associated with the additional certification revenue 17 requirement and the incentive revenue requirement.

18 19 15. Q. PLEASE EXPLAIN SCHEDULE H-CERT-06, INTEREST

20 SYNCHRONIZATION. 21 A. For the test period, Schedule H-CERT-06 recognizes the impact of changes in 22 rate base and capital structure on the level of interest charges included in the 23 calculation of FIT for the test period and the certification period. This schedule 24 also reflects the impact of the additional certification revenue requirement and

25 1 Revenues collected pursuant to the BTGR, BTER, R-BTER, Deferred Energy Accounting Adjustment 26 (“DEAA”), special-purpose Renewable Energy Program Rate (“REPR”), Temporary Renewable Energy Development Rate (“TRED”), Energy Efficiency Program Rate (“EEPR”), and Energy Efficiency 27 Implementation Rate (“EEIR”).

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1 incentive revenue requirement, which impact Cash Working Capital. Cash 2 Working Capital impacts rate base and rate base impacts interest expense. 3 Consistent with the Commission’s treatment in prior dockets, the sum of the 4 weighted debt components of the proposed rate of return (long- and short-term

5 debt, customer deposits and, where applicable, preferred stock) have been 6 applied to the appropriate rate base to arrive at the interest levels used for the 7 calculation of federal income tax liability in Statement H, page two. 8

9 16. Q. PLEASE DESCRIBE SCHEDULE H-CERT-07, UNCOLLECTIBLE

10 ACCOUNTS EXPENSE.

11 A. Schedule H-CERT-07 adjusts the recorded Uncollectible Accounts Expense 12 for changes in operating revenues as a result of the present rate calculations 13 from Statement J, the additional certification revenue requirement and the d/b/a NV Energy 14 incentive revenue requirement. Uncollectible Accounts expense is calculated Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 by applying an Uncollectible Accounts ratio to anticipated operating revenue. and 16 The operating revenue is calculated in the same manner as the revenue for the 17 mill tax assessment. The Uncollectible Accounts ratio represents a three-year 18 average of uncollectible expense (FERC Account No. 904) as compared to the 19 associated revenues for the same three-year period. This calculation is 20 consistent with the methodology approved in Commission Docket No. 06- 21 11022 and used most recently in Sierra’s 2019 general rate case in Docket No. 22 19-06002. 23 24 25 26 27

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1 17. Q. PLEASE DESCRIBE SCHEDULE H-CERT-21, MISCELLANEOUS 2 DEFERRED ADDITIONS AND DEDUCTIONS TO RATE BASE. 3 A. This schedule estimates the balances of the miscellaneous additions and 4 deductions to rate base as of May 31, 2020. The balances at December 31,

5 2019, are updated with estimated activity to arrive at the May 31, 2020, 6 balances, and result in a $37.0 million decrease in rate base additions and a 7 $2.1 million increase in rate base deductions. The overall result of the schedule 8 was a $34.9 million decrease to rate base. Finally, this schedule adjusts the

9 amortization expense for various regulatory items which reduces expense by

10 $14.6 million. This effectively synchronizes the amortization amounts with the

11 rate effective date of the Company’s three-year rate case cycle. The Company 12 plans to update this schedule in its certification filing with actual May 31, 13 2020, balances. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 18. Q. PLEASE DESCRIBE SCHEDULE H-CERT-39, GAIN ON SALE OF and 16 HARRY ALLEN TRANSMISSION ASSETS, REGULATORY 17 LIABILITY. 18 A. This schedule accounts for the sale of Harry Allen transmission assets in 19 accordance with the Harry Allen Transmission License and Sale Agreement 20 stipulation of Docket No. 15-06019. A regulatory liability of $9.9 million is 21 included as a rate base deduction. A three-year amortization results in an 22 annual increase to operating income of $2.6 million thereby reducing revenue 23 requirement. 24 25 26 27

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1 19. Q. PLEASE DESCRIBE SCHEDULE H-CERT-41, PEARSON BUILDING 2 UTILIZATION. 3 A. The Pearson Building (“Pearson”) is Nevada Power’s general office building 4 and the corporate home of NV Energy. In ordering paragraph 156 in Docket

5 No. 08-12002, the Commission stated that “[u]nless the utilization of the 6 Pearson building falls significantly below the current level, the Commission 7 does not expect to need to address this issue in a future general rate case.” The 8 employee count at Pearson as of December 31, 2019, has changed and this

9 proforma adjusts for that change in the employee count. The expense reduction

10 is approximately $1.0 million. The Company plans to update this schedule in

11 its certification filing with actual May 31, 2020.

12 13 20. Q. PLEASE DESCRIBE SCHEDULE H-CERT-42, ADJUSTMENTS TO d/b/a NV Energy 14 OPERATING INCOME Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 A. This schedule sets forth one adjustment to operating income for the end of the and 16 amortization of the Spring Valley Parking Lot recognized from Docket No. 17 17-06003. This represents a $57,000 decrease in operating income for the 18 Nevada electric jurisdiction (i.e., an increase to revenue requirement). This 19 schedule will be updated at certification to capture a second adjustment to 20 operating income related to the expiring amortization of the Industrial Road 21 sale recognized in Docket No. 17-06003 and inadvertently excluded in H- 22 CERT-42 in this filing. The Industrial Road expiring amortization will be a 23 $173,000 decrease to operating income for the Nevada electric jurisdiction. 24 25 26 27

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1 21. Q. PLEASE DESCRIBE SCHEDULE H-CERT-47 – GEORGIA-PACIFIC 2 IMPACT FEES REGULATORY LIABILITY.

3 A. Schedule H-CERT-47 reflects adjustments-related components of the lump 4 sum impact fee paid by an NRS Chapter 704B applicant Georgia-Pacific. In

5 Docket No. 18-09015, the Commission approved Georgia-Pacific’s 6 application to purchase energy, capacity, and/or ancillary services from a 7 provider of new electric resources. As a condition of that approval, Georgia- 8 Pacific was assessed an impact fee that contained BTGR cost components.

9 Georgia-Pacific elected to pay its impact fee in a lump sum.

11 Georgia-Pacific paid its lump sum impact fee and became a Distribution-only 12 Service (“DOS”) customer on February 1, 2020. Upon receipt of the impact 13 fee payment, the Company established a regulatory liability account, which it d/b/a NV Energy 14 began amortizing to revenue over 72 months consistent with the analysis Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 period used to calculate the payment. That amortization will continue until and 16 December 31, 2020 (i.e., for 11 months). For purposes of revenue requirement, 17 the remaining balance in the regulatory liability at December 31, 2020, is 18 included in rate base and is re-amortized over two rate cycles or 72 months. 19 The annual amortization is reflected in Account 456, Other Revenues, in 20 Statement J. This treatment is consistent with the methodology described in 21 paragraphs 45 through 47 of the Commission’s Order on Reconsideration in 22 Docket No. 17-06003. As a result of this treatment, rates in the current Docket 23 are reduced in two ways. First, through the recognition of the annual 24 amortization of the impact fee, which reduces the revenue requirement that 25 would otherwise have to be collected in the BTGR, and second, through a

26 reduction to rate base, which also lowers revenue requirement. 27

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1 In this application, the carrying charges are included and are calculated in 2 compliance with the Order on Reconsideration dated December 17, 2018, in 3 Docket No. 17-06003. 4

5 22. Q. PLEASE DESCRIBE SCHEDULE H-CERT-48 – LAS VEGAS 6 HOLDINGS INC (“SLS”) IMPACT FEE ANNUALIZATION. 7 A. Schedule H-CERT-48 reflects adjustments to revenue for the impact fees that 8 will be paid by NRS Chapter 704B applicant SLS per Docket No. 18-12019.

9 SLS became a DOS customer on January 1, 2020, and has elected to remit its

10 impact fees on a monthly basis as opposed to a single lump sum payment. As

11 a result, Statement J has been adjusted to reflect 12 months of SLS’ impact fee 12 which will be recorded in Account No. 456 for 72 months. Since the payment 13 is made over time, no regulatory liability has been established. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 23. Q. PLEASE DESCRIBE ECIC SCHEDULE H-EC-01. and 16 A. Schedule H-EC-01 is a summary of adjustments by account for the ECIC 17 period. This schedule provides the same cost of service detail as Statement N 18 and flows directly into Schedule H-2, Unbundled Revenue Requirement. 19

20 24. Q. PLEASE DESCRIBE ECIC SCHEDULE H-EC-02. 21 A. Schedule H-EC-02 shows the operation of the revenue reconciliation, which 22 details the component adjustments necessary to convert total recorded and 23 adjusted revenue to annualized present rate revenue applicable to general rate 24 recovery. The present rate revenues included in this reconciliation are shown 25 in Statement J. This schedule also summarizes revenue credits and provides a 26 place holder for updating these credits at certification. 27

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1 25. Q. PLEASE DESCRIBE ECIC SCHEDULE H-EC-03. 2 A. Schedule H-EC-03 annualizes BTER/R-BTER revenue based on the 3 annualized/weather normalized/reclassified sales in Statement J. It also 4 develops the adjusted fuel and purchased power expense for cash working

5 capital by applying the recorded component percentages to the present rate 6 revenue. 7

8 26. Q. PLEASE DESCRIBE ECIC SCHEDULE H-EC-04, CASH WORKING 9 CAPITAL CALCULATION.

10 A. Schedule H-EC-04 shows the calculation of Cash Working Capital Allowance

11 after ECIC adjustments and after inclusion of the additional revenue 12 requirement necessary to allow the Company to earn its proposed rate of 13 return. This schedule starts with the Certification results of operations, adds d/b/a NV Energy 14 the ECIC adjustments and calculates the final cash working capital allowance. Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 and 16 27. Q. PLEASE EXPLAIN ECIC SCHEDULE H-EC-05, MILL TAX, AND 17 ECIC SCHEDULE H-EC-07, UNCOLLECTIBLE ACCOUNTS 18 EXPENSE. 19 A. Schedule H-EC-05 and Schedule H-EC-07 mirror the revenue driven 20 adjustments contained in Schedule H-CERT-05 and Schedule H-CERT-07 by 21 adjusting the certification mill tax expense and uncollectible expense to reflect 22 the ECIC present rate revenues. The ECIC expense levels are then adjusted to 23 reflect the additional revenue requirement including incentives.

24 25 26 27

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1 28. Q. PLEASE EXPLAIN ECIC SCHEDULE H-EC-06, ADJUSTMENT - 2 INTEREST SYNCHRONIZATION. 3 A. Schedule H-EC-06 recognizes the impact of changes in rate base and capital 4 structure on the level of interest charges included in the calculation of FIT for

5 the ECIC period. This schedule also reflects the impact of the additional 6 certification revenue requirement and incentive revenue requirement, which 7 impact Cash Working Capital. 8

9 29. Q. PLEASE DESCRIBE SCHEDULE H-2 – UNBUNDLED REVENUE

10 REQUIREMENT.

11 A. Schedule H-2 allocates the total Nevada jurisdictional revenue requirement 12 from Statement H, page 1, column (k), to the three basic utility functions – 13 generation, transmission and distribution. The unbundled revenue requirement d/b/a NV Energy 14 serves as the basis for rate design. Schedule H-2 starts with the recorded results Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 of operations for the 12 months ended December 31, 2019, as allocated in and 16 Statement N and summarized on Statement H, page 1, column (b). Based on 17 the detail provided in Schedules H-CERT-01 and H-EC-01, the certification 18 and ECIC adjustments are added to the recorded numbers. Finally, the 19 additional revenue requirement and the associated adjustments to mill tax, 20 uncollectible accounts expense, interest expense, federal income tax liability, 21 and cash working capital are added. The resulting values shown in column (g) 22 are allocated or unbundled into the three basic functions – generation, 23 transmission and distribution. 24 25 26 27

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1 30. Q. HOW WAS THE UNBUNDLED COST OF SERVICE CALCULATED 2 BY FUNCTION? 3 Most capital and a significant portion of the operation and maintenance 4 expenses are directly assigned to a specific function (generation, transmission

5 or distribution), based on FERC system of accounts classifications. Other 6 components, such as general and intangible plant and administrative and 7 general expense, are allocated using one of the ten allocators shown on page 8 19 of Schedule H-2. Similar to Statement N, the allocators for each component

9 are indicated next to the component.

11 31. Q. WHAT IS THE PURPOSE OF STATEMENT I? 12 A. Statement I is required by NAC § 703.2351 if the utility’s Statement H 13 contains estimated changes beyond the year of testing. Consistent with the d/b/a NV Energy 14 Commission’s rules, the certification filing will be made within 120 days of Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 the end of the Certification Period, May 31, 2020. and 16

17 32. Q. PLEASE DESCRIBE STATEMENT J. 18 A. There are two Statements J included in this filing and are constructed in the 19 same fashion. The first is Statement J ECIC per NRS reflecting a $95.5 20 decrease in revenue requirement. Statement J Proposed reflects a revenue 21 requirement decrease of $120 million. The $95.5 million decrease Statement J 22 is prepared in accordance with NAC § 703.2355. Both Statements J provide 23 the comparison of recorded revenues, revenues at present rates and revenues 24 at proposed rates. Present and proposed rates revenues were developed by 25 applying the appropriate rates to annualized and weather-normalized billing 26 determinants for each customer class in the test period ending December 31, 27

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1 2019. The present rates use the rates in effect at April 1, 2020. Company 2 witness, Mr. Tim Pollard, addresses the proposed rates in Statement O that 3 result from Statement J. 4

5 As noted in Statement P, a presentation change was made since Docket No. 6 17-06003 with the elimination of Schedule J-3 that included the present and 7 proposed rate revenue for Merrill Lynch. The Merrill Lynch surcharge ended 8 effective June 30, 2019, in accordance with Docket Nos. 06-11035 and 17-

9 01014. Previous schedules J-4 through J-12 are now identified as Schedules J-

10 3 through J-11 with J-11 serving as the Typical Bill Calculation. In addition,

11 a new workpaper format presents the data in Excel tables instead of multiple 12 tabs per rate schedule which referenced external data sources. The underlying 13 calculations have remained the same. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 Load forecasting provides the weather normalization data that consists of and 16 monthly adjustment factors by major rate class. The weather adjustment 17 factors are based on a 20-year rolling average of heating and cooling degree 18 days consistent with the weather normalization methodology accepted for 19 integrated resource planning purposes. Statement J also addresses the level and 20 treatment of other Nevada jurisdictional revenues addressed below. The 21 present rates revenue from these calculations was the starting point for the 22 revenue requirements calculations. Finally, Statement J provides a separate 23 verification that the proposed rates calculated in Statement O generate the 24 requested revenue requirements. 25 26 27

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1 Statement J ECIC per NRS reflects that the impact of the proposed rates on all 2 residential customers is a decrease of 3.1 percent over present rates. For non- 3 residential customers, the decrease is 7.5 percent, and, for DOS customers, the 4 decrease is 3.6 percent. ECIC Statement J per NRS displays the percentage

5 and dollar changes in revenue by rate schedule within customer classes 6 reflecting a revenue requirement decrease of $95.5 million. 7 8 Statement J Proposed reflects that the impact of the proposed rates on all

9 residential customers is a 4.4 percent decrease over present rates. For non-

10 residential customers, the decrease is 8.7 percent and, for DOS customers,

11 the decrease is 4.8 percent. Statement J Proposed displays the percentage and 12 dollar changes in revenue by rate schedule within customer classes for the 13 Company’s request for a revenue requirement decrease of $120.0 million. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 The Company will update both Statements J and related schedules at the end and 16 of the certification period. 17

18 33. Q. BRIEFLY DESCRIBE SCHEDULES J-1 THROUGH J-12. 19 A. Schedule J-1 reflects present and proposed BTGR and BTER revenues. 20 21 Schedule J-2 compares present and proposed BTGR revenue for only the 22 BTGR component calculated from the annualized billing determinants shown 23 in column (b). In addition to BTGR per kWh, BTGR revenue includes basic 24 service, demand, facility and power factor charges and any other charges 25 shown in the statement of rates other than Universal Energy Charge (“UEC”) 26 and TRED. The UEC is remitted directly to the Commission and TRED 27

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1 collections are remitted directly to the TRED Trust, and so do not constitute 2 Company revenues. 3 4 Schedule J-3 shows the revenue resulting from the current BTER and the

5 DEAA rate when applied to the annualized billing determinants. The 6 annualized BTER revenue is included in the total revenue used to design rates. 7 8 Schedule J-4 shows the revenue resulting from the current REPR when applied

9 to the annualized billing determinants.

11 Schedule J-5 reflects the recorded revenues by rate schedule for the test period 12 ended December 31, 2019. The revenues were separated into BTGR, BTER, 13 DEAA, REPR, EEIR and EEPR. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 Schedule J-6 reflects recorded customers, sales and revenues by month for the and 16 test period. Included in this schedule are adjustments for unbilled sales and

17 other special items that occurred during the test period. Other Revenues – 18 Nevada are shown along with revenue credits and adjustments from Statement 19 N Nevada jurisdiction. The revenues from this table appear in Statement H and 20 Statement N Nevada jurisdiction as recorded revenues. 21 22 Schedule J-7 reflects changes in recorded kWh due to adjustments, 23 annualization and weather normalization. Annualization increased test period 24 volumetric consumption by 40,011 MWh and weather normalization increased 25 test period volumetric consumption by 167,789 MWh for a net increase to test 26 period volumetric consumption of 207,800 MWh or 0.94 percent. 27

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1 Schedule J-8 reflects the impact on total revenue of non-weather adjustments 2 and annualizations such as out-of-period adjustments, as well as the 3 incremental impact of weather normalization. 4

5 Schedule J-9 summarizes the recorded and annualized sales and bills for the 6 test period for each existing rate classification. The table portrays the effects 7 of annualization with respect to recorded sales. As shown in the table, 8 annualized sales for the test period total 22,334,668 MWh, an increase of 0.94

9 percent over recorded sales of 22,126,868 MWh. Average annualized

10 customers total 11,561,592, an increase of 0.92 percent over the test period

11 customers of 11,456,516. The annualized customer count of 11,561,592, 12 which includes Street and Outdoor Lighting, translates to 963,466 customers. 13 d/b/a NV Energy 14 Schedule J-10 provides the present and proposed rate revenue for Energy Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 Efficiency Program and Implementation rates (excluding EEIR amortization and 16 amounts that are reclassified to a balance sheet account). 17 18 Schedule J-11 reflects the typical bill calculation for residential single and 19 multi-family rates using the updated average usage. 20

21 34. Q. PLEASE DESCRIBE THE PRIMARY STEPS INVOLVED IN 22 DEVELOPING THE ANNUALIZED BILLING DETERMINANTS. 23 A. There are generally four steps involved in developing the annualized billing 24 determinants for all classes other than Street and Outdoor Lighting: 25 1. Recorded billing determinants are summarized by existing customer 26 classes. These billing determinants are generally comprised of the 27

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1 number of customers, kWh sales, kilowatt (“kW”) demand, facility 2 demand (kW), and billed kilovolt ampere-reactive hours (kVarh), 3 which pertain to power factor charges. For classes with time-of-use 4 (“TOU”) billing, the kWh and kW determinants are also detailed by

5 TOU period. Some classes also have contract demand determinants 6 and customer-specific facility charges. 7 2. The recorded billing determinants are adjusted, as necessary. Reasons 8 for adjustments to recorded amounts include:

9 i. Placing out-of-period adjustments reflected in the recorded

10 data into the correct month or seasonal period; and

11 ii. Correcting recorded entries that were the result of manual 12 input errors, misclassification of customers in the Company’s customer 13 information system, or bill corrections made after the recorded entries. d/b/a NV Energy 14 Also, any special adjustments or changes, usually for larger customers, Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 were individually reviewed to ensure the most representative monthly and 16 sales level. 17 3. The resulting adjusted monthly kWh sales by class are then weather 18 normalized based upon the monthly weather-related adjustments to 19 recorded sales estimated by Resource Planning. Only the kWh billing 20 determinants are adjusted for weather. The kWh sales for certain 21 classes such as street lighting, outdoor lighting, standby energy use, 22 water pumping, and applicable distribution-only are not weather 23 adjusted because their loads are deemed to be insensitive to weather. 24 4. The adjusted determinants (and in the case of kWh sales, the adjusted 25 and weather normalized billing determinants) are then annualized. For 26 27

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1 example, kWh sales for each class other than street and outdoor 2 lighting are annualized by using the following methodology: 3 i. The average kWh sales per customer is calculated for 4 each month during the test period and by TOU period as applicable;

5 ii. The monthly average kWh sales per month are 6 multiplied by the customer count at the end of the test period; and, 7 iii. The revised kWh for each month is then summed 8 together to obtain the annual sales for the test period.

10 This same annualization methodology is used for the kW demand (by TOU

11 period as applicable), the non-customer specific facilities kW, and billed 12 kVarh (power factor) determinants. As indicated, the annualized customer 13 count is the number of customers in the class in the last month of the test d/b/a NV Energy 14 period. Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 and 16 35. Q. WHAT SPECIAL ADJUSTMENTS OR CHANGES IN ANNUALIZED 17 SALES WERE PERFORMED FOR LARGER CUSTOMERS? 18 A. Two NRS Chapter 704B customers will use alternative energy provider(s) post 19 test period. An adjustment included the removal of these customers from their 20 respective retail rate schedules, annualizing their usage and re-classifying 21 them to their appropriate DOS schedule. 22 23 Adjustments were performed for two prospective large customers expected to 24 connect post test period. Estimated loads were calculated, annualized, and 25 added to the appropriate rate schedules. 26 27

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1 36. Q. PLEASE EXPLAIN HOW LIGHTING REVENUES WERE 2 ANNUALIZED. 3 A. The General Service (“GS”) and Residential Service (“RS”) and Private Area 4 Lights (“PAL”) are flat-rate lighting services. The kWh sales to flat-rate

5 lighting customers were derived in two steps: 6 i) For each class, the test period ending lamp (or bulb) count is multiplied 7 by 12 to get the annualized number of lamps in the class and; 8 ii) The “rated” monthly kWh consumption for each class for the type of

9 lamp is multiplied by the annualized number of lamps.

10 The sum of kWh sales calculated for each class is the total annualized kWh for

11 the respective RS and GS PAL classes. The present rate BTER annualized 12 revenues for the RS-PAL and GS-PAL classes were then computed as the 13 product of the annualized kWh determinants and the present BTER. Similarly, d/b/a NV Energy 14 present rate BTGR revenues were calculated for each lighting class as the Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 product of the annualized number of lamps and the present BTGR monthly and 16 rate per lamp. 17 18 Flat-rate Street Lighting Services were annualized in the same manner as the 19 PAL lighting services. 20

21 37. Q. PLEASE DESCRIBE HOW YOU DEVELOPED THE “OTHER 22 REVENUES” USED IN THE PRESENT AND PROPOSED RATE 23 CALCULATIONS. 24 A. The following annualized adjustments have been made to “Other Revenues”:

25 • Account 450000, Forfeited Discounts, contains the revenue from late 26 charges on overdue bills. 27

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1 • Account 451000, Miscellaneous Service Revenues, consists largely of 2 connection service fees.

3 • Accounts 451020/030 reflect return check charges and miscellaneous 4 damage charges.

5 • Accounts 451080/085 reflects an annualized figure for the initial and

6 monthly fees for non-standard meter option. 7 • Account 451091, Flexpay Monthly Fee, consists of fees associated with

8 the Flexpay program. 9 • Account 456001, Other Elec Rev–Policy Adjust, has a debit balance for

10 the test period and has been removed from revenue requirement. It

11 represents miscellaneous billing adjustments.

12 • Account 456002, Other Electric Rev–Misc., has been annualized to 13 remove all test period revenue, which related to expiring amortizations and d/b/a NV Energy 14 contracts, and to include amortizations calculated on H-CERT-37, H- Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 CERT-38. and 16 • Account 456003, Retail Open Access Impact Fees, represents the impact 17 fees calculated on H-CERT-47 and H-CERT-48.

18 • Account 456006, Other Elec Rev-Rate Correction, has a debit balance for 19 the test period and has been removed from revenue requirement. It 20 represents miscellaneous billing corrections. 21

22 38. Q. PLEASE DESCRIBE STATEMENT K, OPERATIONS AND 23 MAINTENANCE EXPENSE. 24 A. This statement is co-sponsored with Mr. Behrens. Statement K is a seven-page 25 statement, the first page of which depicts the Company’s total recorded 26 operations and maintenance expense for the test year, by functional 27

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1 classifications of primary accounts. The first page also reflects a summary of 2 Statement N adjustments and the additions of certification adjustments. Pages 3 two, four and six were comprised of monthly recorded expenses by primary 4 accounts, grouped into their functional classifications. Pages three, five and

5 seven show the operating and maintenance amounts starting with recorded 6 data, Statement N regulatory adjustments, and conclude with the addition of 7 certification adjustments and ECIC adjustments. 8

9 39. Q. PLEASE DESCRIBE SCHEDULE K-1, ANALYSIS OF LABOR

10 COSTS.

11 A. This statement is co-sponsored with Mr. Behrens. Schedule K-1 categorizes 12 the recorded operations and maintenance expenses reported in Statement K 13 into labor expense and other expenses. Page one begins with recorded data, d/b/a NV Energy 14 adds in Statement N regulatory adjustments, and concludes with the addition Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 of certification adjustments and ECIC adjustments. Page two shows the and 16 recorded test period expenses by month by functional classifications. 17

18 40. Q. PLEASE DESCRIBE STATEMENT L. 19 A. Statement L provides a summary of Nevada Power’s plant depreciation and 20 amortization expense by functional classifications through the test period 21 ended December 31, 2019, and the certification period ending May 31, 2020, 22 and the ECIC Period ending December 31, 2020. 23 24 25 26 27

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1 41. Q. PLEASE DESCRIBE THE INFORMATION CONTAINED IN 2 STATEMENT N. 3 A. Statement N contains a summary of the Company’s adjusted results of 4 operations for the twelve months ended December 31, 2019, and is the starting

5 point and source for most of the statements and schedules from which annual

6 revenue requirement is calculated. Each page includes: 7 • The recorded values from the books and records of the utility; 8 • Adjustments to reflect regulatory treatment that is not otherwise recorded 9 on the books; and

10 • The allocation of the amounts between Nevada Power’s FERC

11 jurisdictional and Nevada jurisdictional customers. 12 13 As noted in Statement P, there was a presentation change made to schedules d/b/a NV Energy 14 with data labeled as Amortization of ITC. Excess Accumulated Depreciation Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 Income Taxes (“ADIT”) will be added where appropriate as Excess ADIT is and 16 being introduced in this general rate case. Additionally noted in Statement P, 17 page 17 of Statement N has been updated to segregate leases into two 18 categories labeled as Lease – General Office and Lease Transmission. This 19 assigned an expense lead for leases of 12.11. The impact of this change 20 resulted in a rate base deduction of $11.6 million compared to a reduction of 21 $14.7 million using the current treatment. The expense lead day calculation is 22 by Company witness Mr. Walker III. 23 24 25 26 27

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1 42. Q. PLEASE DESCRIBE THE NEVADA JURISDICTIONAL PORTION 2 OF STATEMENT N. 3 A. The results of operations and rate of return calculations for Nevada Power’s 4 Nevada and Federal electric jurisdictions are shown on Statement N. The

5 adjustment to rate base for the cash working capital allowance and the interest 6 synchronization for FIT calculations also are included. The allocation 7 methodology used in this schedule follows the methodology recommended by 8 the National Association of Regulatory Utility Commissioners in their Cost

9 Allocation Manual and is more fully set forth in Exhibit Trigero-Direct-2.

11 43. Q. HAVE ANY ADJUSTMENTS BEEN MADE TO THE ALLOCATORS 12 USED IN STATEMENT N? 13 A. No. d/b/a NV Energy 14 Nevada Power Company Company Power Nevada Sierra Pacific Power Company Pacific PowerSierra Company 15 44. Q. PLEASE DESCRIBE SCHEDULE M-5, TAXES OTHER THAN and 16 INCOME. 17 A. Schedule M-5 lists taxes other than income recorded and allocated at 18 December 31, 2019, certification adjustments estimated at May 31, 2020, and 19 adjustment for the ECIC Period ending December 31, 2020.

20 21 45. Q. DOES THIS CONCLUDE YOUR PREPARED DIRECT TESTIMONY? 22 A. Yes, it does. 23 24 25 26 27

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QUALIFICATIONS OF WITNESS

BILL TRIGERO

I graduated from University of Nevada, Reno with a Bachelor of Science Degree in Accounting. Prior to coming to Sierra Pacific I held positions at Nevada National Bank and International Game Technology. I began working at Sierra Pacific Power Company, now known as NV Energy, in 1985. During the course of my employment at Sierra, I have held muliple positions. . Accountant in Regulatory Accounting – 1985 to 1986 . Accountant/Senior Accountant in Accounting Systems and Development – 1986 to 1990 . Financial Planning Analyst/Team Leader in Finance – 1990 to 1995 . Pipeline Accounting Analyst working for Tuscarora Gas Transmission Company - 1995 to 1996 . Transmission Group Controller – 1996 to 1998 . Distribution Group Controller – 1998 to 1999 . Financials Team Lead overseeing the implementation of Nevada Power and Sierra’s accounting system (PeopleSoft) – 1999 to 2000 . Accounting Manager for Sierra Pacific Communications – 2000 to 2001 . Staff Analyst in Rates and Regulatory Affairs – September 2001 to March 2008 . Supervisor, Regulatory Accounting – March 2008 to January 2015 . Project Manager, Transmission Project Delivery – January 2015 to December 2015 . Director, FERC Compliance – December 2015 to March 2020 . Director, Regulatory Accounting, Revenue Requirements and FERC - April 2020 to present

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I have sponsored and/or prepared testimony and exhibits for proceedings held before the Nevada Public Service Commission, California Public Utilities Commission, and the Federal Energy Regulatory Commission.

Page 192 of 247 EXHIBIT TRIGERO-DIRECT- 2

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NEVADA POWER COMPANY d/b/a NV Energy COST ALLOCATION METHODOLOGY

1. Nevada Power Company (“Nevada Power”) is a regulated public utility engaged primarily in the generation, purchase, transmission, distribution and sales of electricity in Nevada. The electric utility department operates under the jurisdiction of the Public Utilities Commission of Nevada (“PUCN”) and the Federal Energy Regulatory Commission (“FERC”).

2. Nevada Power maintains its accounting records in accordance with the uniform system of accounts for such utilities as prescribed by Code of Federal Regulations (“CFR”).

3. In its "Preface" to the 1973 National Association of Regulatory Utility Commissioners (“NARUC”) Electric Utility Cost Allocation Manual, the Subcommittee on cost allocation states:

A uniform method of cost allocation for electric utilities operating under the jurisdiction of more than one regulatory agency is required if neither the public or the utility is to suffer by reason of inconsistent or incompatible action. A reasonable method should be agreed upon by the several regulatory jurisdictions and implemented by the utility in each area. The sum of the jurisdictional pieces allocated by a reasonable method should equal the jurisdictional total -no more and no less.

The allocation methodology described herein has been submitted to and accepted by the PUCN and closely follows the methodology recommended by NARUC.

4. Under the allocation methodology described herein, costs are classified into the basic components demand, energy, customer, or some composite thereof, for allocation purposes. Demand-related costs are those costs which relate to peak usage of electricity. These costs are generally referred to as fixed costs because they remain constant regardless of the amount of energy delivered by the system. Energy-related costs are those which vary directly with the quantity of energy produced and delivered. Customer-related costs are those which vary with the number of customers served.

5. These three dimensions, demand, energy and customers, provide the basis for the jurisdictional allocation of the majority of the Electric Department costs, both capital and operating. The jurisdictional responsibility for demand-related costs is based on the contribution to twelve monthly peaks. Transmission Demand is the sum of twelve monthly transmission system loads and Production demand is the sum of the twelve monthly system peaks. The jurisdictional responsibility for energy-related costs is determined by the sum of twelve months recorded sales and their relationship to output to lines for the same period. Because Nevada

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Power is a retail energy provider solely within the State of Nevada, customer- related costs are directly assigned to the Nevada Retail jurisdiction. These ratios are primary allocation ratios and the combination of two or more of these primary ratios are a composite ratio.

6. All costs do not fall neatly into the three classifications listed above. Generally, such costs are allocated only after all basic costs have been apportioned to the appropriate jurisdiction. These costs fall into a category which follows proportionately the direct initial allocation of functional costs. Allocation ratios calculated as the sum of specific previously allocated accounts are secondary ratios.

7. Net Production Plant and related operating expense for steam and other power production, with the exception of fuel, is classified as demand-related. Other power supply expenses, excluding energy costs for purchased power, are also demand- related. The Production Demand allocator is contribution to system peak. Fuel, energy costs for purchased power and all production maintenance expense are energy-related.

8. Net Transmission Plant, its associated operation and maintenance expense (with the exception of Account No. 565), and depreciation expense are classified as demand-related. The Transmission allocation is based on the Transmission System Load as described in the NV Energy Operating Companies Open Access Transmission Tariff (“OATT”). Transmission System Load is the sum of the contribution to peak of all Network Customers (including Nevada Power’s native load) plus the contract demands of all long-term firm point-to-point customers. The four coincident peaks of June, July, August, and September (“4CP”) are used to calculate the transmission demand allocator. Patricia Franklin addresses the use of the 4CP in her direct testimony. Short-term and non-firm transmission transactions are treated as revenue credits. Account No. 565, Transmission by others, is associated with Account No. 555, Purchased Power, and is recovered in Deferred Energy Accounting.

9. Net Distribution Plant and its associated operation and maintenance expense and depreciation expense are Nevada jurisdictional.

10. Net General Plant and depreciation expense are allocated jurisdictionally on a ratio based on functionalize labor expense.

11. Net Intangible Plant and depreciation expense are allocated jurisdictionally on a ratio based on functionalized labor expense.

12. Other additions and deductions to rate base are allocated based on the items that give rise to them. For example, Materials and Supplies-Fuel is allocated on energy, as is Fuel Expense.

13. Customer Accounts Expense and Customer Service and Information Expense are assigned to the Nevada jurisdiction.

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14. Administrative and General Expenses are allocated to jurisdictions using secondary allocation ratios based on Plant and/or Expenses. Regulatory Commission Expense and Resource Planning Expenses are directly assigned.

15. Allocation of Taxes other than Income Taxes, Deferred Income Taxes, Investment Tax Credits, and Schedule M Tax Adjustments are based on the item which gives rise to the tax or tax adjustment.

Page 196 of 247 Page 197 of 247 TERRY A. BAXTER

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1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

2 Nevada Power Company d/b/a NV Energy Docket No. 20-06___ 3 2020 General Rate Case

4 Prepared Direct Testimony Of

5 Terry A. Baxter

6 Revenue Requirement 7 8 1. Q. PLEASE STATE YOUR NAME, OCCUPATION, AND BUSINESS 9 ADDRESS.

10 A. My name is Terry A. Baxter. I was Manager of Load Forecasting at Nevada

11 Power d/b/a NV Energy (“Nevada Power” or the “Company”) and Sierra 12 Pacific Power Company d/b/a NV Energy (“Sierra,” and together with Nevada 13 Power, the “Companies”) from July 9, 2007, through May 8, 2019. I have since Power Company Company Power

d/b/a NV Energy 14 retired from Nevada Power, but I consult for Yoh, a Day and Zimmerman Nevada Nevada 15 Company. I am supporting the load forecast function for the Company. More and Sierra Pacific Power Company Pacific Power Sierra and Company 16 details regarding my professional background and qualifications are set forth 17 in Exhibit Baxter-Direct-1. I am filing testimony on behalf of Nevada Power. 18 19 2. Q. WHY ARE YOU STILL WORKING FOR THE COMPANIES?

20 A. Due to the timing of my retirement, and my involvement in developing the 21 weather normalized sales for this filing as well as the load forecast for 22 upcoming filings, I was retained by the Company to support the load forecast 23 for 2020. 24 25 26 27

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1 3. Q. WHAT WERE YOUR RESPONSIBILITIES AS MANAGER OF LOAD 2 FORECASTING? 3 A. As the Manager of Load Forecasting for Nevada Power, my primary 4 responsibilities included forecasting sales volume, customer counts and peak

5 demand for use in development of financial budgets, sales weather 6 normalization for general rate cases (“GRC”), Energy Supply Plans (“ESP”) 7 and Integrated Resource Plans (“IRP”). 8 9 4. Q. PLEASE SUMMARIZE YOUR EDUCATIONAL BACKGROUND

10 AND EMPLOYMENT EXPERIENCE IN THE UTILITY INDUSTRY.

11 A. I hold a Master of Arts in Economics from the University of Arkansas located 12 in Fayetteville, Arkansas, and a Bachelor of Science in Economics from the 13 University of Missouri at Rolla (now Missouri University of Science and Power Company Company Power

d/b/a NV Energy 14 Technology) located in Rolla, Missouri. Prior to my time at NV Energy, I Nevada Nevada 15 served as the Manager of Forecasting and Economic Analysis at Alliant and Sierra Pacific Power Company Pacific Power Sierra and Company 16 Energy in Cedar Rapids, Iowa, for nine years, where I was responsible for load 17 and revenue forecasting and load research. Prior to that, I was a Group 18 Manager for seven years with Aspen Systems Corporation (now a division of 19 Lockheed-Martin) overseeing analytical consulting projects for utilities and

20 the U.S. government. I also have served as Manager of Load Research at 21 Midwest Resources (now MidAmerican Energy Company) and as the Load 22 Research Analyst at Missouri Public Service Company (now a part of Kansas 23 City Power and Light Co., a division of Great Plains Energy). I have submitted 24 reports and testimony regarding load forecasting and load research before the 25 Iowa Utilities Board, the Wisconsin Public Service Commission, the Illinois 26 Commerce Commission, the Minnesota Department of Commerce, the 27

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1 California Energy Commission, the California Public Utilities Commission 2 and the Public Utilities Commission of Nevada (“Commission”). 3 4 5. Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE THE PUBLIC

5 UTILITIES COMMISSION OF NEVADA? 6 A. Yes, I have testified in numerous proceedings before the Commission, most 7 recently in the Companies’ 2018 Joint IRP, Docket No. 18-06003, the Second 8 Amendment to the 2018 Joint IRP, Docket No. 19-05002 and the Sierra’s 2019 9 GRC, Docket No. 19-06002.

11 6. Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY? 12 A. The purpose of my testimony is to sponsor the weather normalization of test 13 period sales included in Statement J, Schedule J-7 – Annualized kWh with Power Company Company Power

d/b/a NV Energy 14 Weather Normalization Contribution for the Test Period Ended December 31, Nevada Nevada 15 2019. The remainder of Statement J will be sponsored by Nevada Power and Sierra Pacific Power Company Pacific Power Sierra and Company 16 witness William Trigero. 17 18 I also sponsor the following exhibit that is attached to my testimony: 19 • Exhibit Baxter-Direct-1 – Statement of Qualifications.

20 21 7. Q. ARE ANY OF THE MATERIALS YOU ARE SPONSORING 22 CONFIDENTIAL? 23 A. No. 24 25 26 27

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1 8. Q. PLEASE EXPLAIN THE WEATHER NORMALIZATION OF 2 REVENUES PERFORMED IN THIS CASE. 3 A. Weather normalization of historic consumption and revenue data is an 4 accepted practice at Nevada Power. Peak demand and energy consumption

5 must be weather normalized when preparing a forecast to be used in preparing 6 an IRP. The Commission has also accepted the use of weather normalized sales 7 in preparing projections or estimates of sales for use in Statement J in Nevada 8 Power’s last general rate case (“GRC”), Docket No. 17-06003. Similarly, the 9 same weather normalization techniques used to prepare peak demand and

10 energy consumption forecasts in an IRP were used to prepare projections or

11 estimates of sales under normal weather conditions.1 12 13 9. Q. BRIEFLY EXPLAIN HOW SALES WERE WEATHER Power Company Company Power

d/b/a NV Energy 14 NORMALIZED FOR THIS CASE. Nevada Nevada 15 A. As in IRP filings, a rolling 20-year period was used to calculate normal degree and Sierra Pacific Power Company Pacific Power Sierra and Company 16 days, cooling degree days (“CDD”) and heating degree days (“HDD”). For the 17 purposes of this proceeding, the 20-year normal period was January 2000 18 through December 2019. To normalize residential load, the Company used 19 CDD with base 70 and 80.2 This test year was slightly cooler than the normal

20 weather. Table Baxter-Direct-1 below shows the difference between the 21 recorded and normal temperature. 22 23 1 For example, refer to Technical Appendix LF-1, Volume 5 of 18 pages 54-55, in the 2018 Joint IRP, Docket No. 18-06003. 24 2 CDD is measured by taking the difference of the recorded temperature with the CDD base temperature. If the difference results in a negative value, then it is replaced with 0. For example, if the recorded temperature 25 is 90, then the CDD70 is 20, and, if the recorded temperature is 65, then the CDD70 is 0. It should be noted that, for the residential class, the Company used CDD70 and CDD80 in the weather normalization model (vs. CDD75 26 in the 2018 GRC) to capture the nonlinear relationship between cooling weather and electricity consumption. Additionally, the Company utilized HDD60 (vs. HDD55 in the 2017 GRC) to normalize for heating weather as 27 that model had slightly better model statistics than the HDD65 used in the 2017 GRC model.

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1 Table Baxter-Direct-1 2 CDDs and HDDs for Test Period Ending December 31 , 2019

3 Recorded Normal Difference = 4 Recorded –

5 Normal

6 CDD 70 2,729 2,854 -125

7 CDD 80 1,312 1,316 -4

8 HDD 60 1,130 1,078 52

10 Nevada Power’s load forecasting department ran multiple regression models

11 using monthly billed sales data for the 10-year historical period 2010 through 12 2019 for the residential single family, residential multi-family, GS, LGS-1, 13 Power Company Company Power and LGS-2 and LGS-3 (combined – designated “LGS2/3”) rate classes. In

d/b/a NV Energy 14 each model, billing cycle CDDs and HDDs were independent variables used Nevada Nevada 15 to explain the variation in monthly sales caused by the weather. The and Sierra Pacific Power Company Pacific Power Sierra and Company 16 coefficients of these variables measure the estimated change in sales per 17 customer (or total sales for the LGS 2/3 class) for a one unit change in degree 18 days. Certain classes that are not sensitive to weather were not weather 19 normalized, e.g. street lighting, outdoor lighting, and public authority. Where 20 applicable, distribution-only service sales were included in the appropriate 21 weather normalization model.

22 23 Nevada Power’s load forecasting department uses a standard process to 24 develop weather normalized sales. The steps included:

25 • Derive the difference between the actual and normal degree days for 26 each month; 27

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1 • Multiply the difference obtained above by the estimated weather 2 coefficient(s) for that month (the slope estimate); and 3 • Add the value from the step above to the monthly sales per customer 4 (or total sales). Multiply the monthly sales per customer times the

5 monthly customer count to obtain the monthly class weather 6 normalized sales. 7 8 This process was applied to the monthly sales by rate class for 2019 and a 9 monthly factor measuring the ratio of weather normalized to actual billed sales

10 was developed. This factor was then applied to the monthly billing

11 determinants to obtain the sales used in preparing Statement J. 12 13 10. Q. WHAT ARE THE IMPACTS OF WEATHER NORMALIZATION ON Power Company Company Power

d/b/a NV Energy 14 TEST PERIOD SALES? Nevada Nevada 15 A. Schedule J-7 shows changes in recorded kilowatt-hours (“kWh”) due to and Sierra Pacific Power Company Pacific Power Sierra and Company 16 weather normalization. Weather normalization increased test period sales by 17 167,789,133 kWh, or less than one percent. 18 19 11. Q. IN SIERRA’S 2019 GRC, THE COMMISSION ORDERED SIERRA TO

20 USE A 20-YEAR TREND ANALYSIS TO ACCOUNT FOR THE 21 WARMING TREND IN TEMPERATURES IN SIERRA’S SERVICE 22 TERRITORY. HAVE YOU PERFORMED ANY SIMILAR ANALYSES

23 FOR NEVADA POWER? 24 A. In Sierra’s GRC, the Commission found that a 20-year trend methodology 25 captured a warming trend in Sierra’s service territory that was different than 26 Sierra’s 20-year weather normalization average. To determine the potential 27 differences in this case, Nevada Power contracted Itron, Inc. (“Itron”), a

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1 consulting firm it has used in the past to assist in forecasting and weather 2 normalization tasks, to examine the temperature history at McCarran Airport 3 in Clark County using a method it developed to study long term temperature 4 trends and the impact on system loads. Itron’s analysis shows a strong

5 warming trend for the average daily temperature from 1970 to 2019, indicating 6 an increase of 0.11 degrees per year, or 1.1 degrees per decade. In addition, its 7 analysis shows the annual maximum temperature has been increasing 0.19 8 degrees per decade, although that trend does not exhibit strong statistical 9 significance. Further, the analysis shows the annual minimum temperature is

10 experiencing a strong statistical temperature increase trend of 2.74 degrees per

11 decade. Itron’s conclusion is that average temperature is rising mainly because 12 the minimum temperature is increasing, not the maximum temperature. The 13 Prepared Direct Testimony of Mr. Eric Fox provides a description of the Power Company Company Power

d/b/a NV Energy 14 analysis on weather trends and how to employ the results in developing Nevada Nevada 15 weather normalization. and Sierra Pacific Power Company Pacific Power Sierra and Company 16 17 12. Q. GIVEN THE ANALYSES DESCRIBED ABOVE, WHY DID NEVADA 18 POWER CONTINUE USING THE ROLLING 20 YEAR AVERAGE IN 19 ITS WEATHER NORMALIZATION ANALYSIS?

20 A. Nevada Power decided to use rolling 20 year average as a reasonable method 21 to define normal weather consistent with previous IRP filings as well as 22 general rate review proceedings since 2000 while research and analysis by 23 Itron was in progress. The use of weather normalization impacts the 24 adjustment to billing determinants as well as the forecast, both are inputs into 25 the general rate case (“GRC”). The forecast and the weather normalization 26 adjustments were delivered in late February for input to the GRC. The forecast 27 went to Resource Planning to support development of the probability of peak

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1 and loss of load probability inputs to Marginal Cost of Service study (“MCS”). 2 The weather normalization factors delivered to the Regulatory Accounting 3 team completing Statement J. 4

5 Discussions with Itron regarding research and analysis of average weather in 6 Nevada began at the end of January. In early February, Itron completed an 7 initial review of historical weather and then provided a list of data inputs they 8 needed to complete a full analysis, which the Company provided by mid- 9 February. Using those inputs, Itron has been developing trended normal degree

10 days for various bases for Nevada Power using a detailed analysis of the

11 historical temperature data. However, a complete analysis of the weather 12 normalization adjustment factors and a revised forecast using the trended 13 normal degree days could not be complete before input were due by the end Power Company Company Power

d/b/a NV Energy 14 of February. The methodology and results of the trended normal degree days Nevada Nevada 15 is described in the testimony of Mr. Fox of Itron. These normal degree days in and Sierra Pacific Power Company Pacific Power Sierra and Company 16 addition to the forecast reflecting trended normal degree days will be 17 employed as inputs in the Certification filing, 18 19 13. Q. WHAT IS YOUR RECOMMENDATION REGARDING THE USE OF

20 THE ITRON TRENDED NORMAL WEATHER FOR USE IN 21 WEATHER NORMALIZATION OF TEST YEAR SALES? 22 A. The previously approved rolling 20 year average definition of normal weather 23 provided in the direct filing is a reasonable methodology the Commission 24 could utilize. However, after reviewing the work performed by Itron, the 25 Company recommends adopting the use of the trended normal weather as 26 discussed in the testimony of Mr. Fox to weather normalize test year sales as 27 a more appropriate methodology. A full comparison of the results of both

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1 methodologies and the respective impact on billing determinants will be 2 included in the certification filing. 3 4 14. Q. DOES THIS CONCLUDE YOUR PREPARED DIRECT TESTIMONY?

5 A. Yes, it does. 6 7 8 9

11 12 13 Power Company Company Power

d/b/a NV Energy 14 Nevada Nevada 15 and Sierra Pacific Power Company Pacific Power Sierra and Company 16 17 18 19

20 21 22 23 24 25 26 27

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STATEMENT OF QUALIFICATIONS OF TERRY A. BAXTER

Education

Master of Arts University of Arkansas, Fayetteville, AR, 1979, Economics Bachelor of Science University of Missouri-Rolla, Rolla, MO, 1976 Economics

Related Professional Experience

5/20 to present Team Lead – Forecasting. Yoh, a Zimmerman and Day Company. In this position, I support the load forecasting activities of NV Energy. 7/07 to 5/20 Manager of Load Forecasting, Nevada Power Company d/b/a NV Energy My primary duties are the forecasting of customers, sales, peak demand, gas therms and gas design day therms, for use in supply planning, rate cases and budgeting. Additional responsibilities include production of forecast variance reports actual to budget, weather adjustment of peaks and sales, and participation in local population forecasting working groups. I have filed testimony and supporting documents and testified on numerous occasions before the Public Utility Commission of Nevada.

2003 to 2007 Manager, Forecasting and Economic Analysis, Alliant Energy Responsible for the direction and technical work in the areas of statistical sample design and evaluation of load research samples, peak and energy forecasting, for both the gas and electric utilities, and associated regulatory filings, including Integrated Resource Plan filings in Iowa, Illinois, Minnesota and Wisconsin. In this position, I was also responsible for the monthly sales and revenue forecast and explanations of the monthly variance analysis, including actual to budget, year-over- year, and outlook for both operating companies: Wisconsin Power and Light Company and Iowa Power and Light Company. Also responsible for rate case sales and demand forecasts in Wisconsin and Minnesota. Filed direct testimony before the Minnesota Department of Commerce.

2001 to 2003 Private Consultant Assisted utility companies in sample design and analysis of load research programs.

1998 to 2003 Team Leader, Forecasting and Economic Analysis, Alliant Energy Responsible for the direction and technical work in the areas of statistical sample design and evaluation of load research samples, peak and energy forecasting, for both the gas and electric utilities, and associated regulatory filings for IES Utilities and Interstate Power Company and its successor company, Iowa Power and Light.

1991 to 1998 Group Manager, Aspen Systems Corporation Responsible for the technical direction of utility consulting projects in the areas of sample design, DSM performance evaluation, market and survey research.

1985 to 1991 Rate Engineer and Manager of Load Research, and Forecasting, Iowa Power, Inc. /Midwest Energy Responsible for all facets of the load research program, including sample design, analysis and equipment selection, as well as sales forecasting. Filed testimony before the Iowa Utilities Board.

1980 to 1995 Load Research Analyst, Missouri Public Service Company Responsible for all facets of the load research program as well as class cost of service and marginal cost studies.

1979 to 1980 Economic Analyst, Illinois Commerce Commission Responsible for examination of utility rate and regulatory filings.

Page 208 of 247 Exhibit Baxter-Direct-1 Page 2 of 2

Other

2007 to 2020 Steering Committee, EEI Load Forecasting Group

1998 to 2007 Member, AEIC Load Research Committee Marketing sub-committee chairman from 2001-2007.

Specialized Training

Econometric Modeling Using SAS/ETS Software, February, 1991.

SAS Macro Language, August 1990.

Forecasting Techniques using SAS/ETS Software, April, 1990.

Sampling Methods and Statistical Analysis in Power Systems Load Research, April, 1989.

A.E.I.C. Seminar in Advanced Sample Design and Analysis of Load Research Data, July 1987.

Itron Statistically Adjusted End Use (SAE) Training Workshop, November 2008.

Page 209 of 247 Page 210 of 247

ERIC FOX

Page 211 of 247

1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

2 Nevada Power Company d/b/a NV Energy Docket No. 20-06___ 3 2020 General Rate Case 4 Prepared Direct Testimony of 5 Eric Fox 6 Revenue Requirement 7 8 I. INTRODUCTION 9 1. Q. PLEASE STATE YOUR NAME AND BUSINESS ADDRESS.

10 A. My name is Eric Fox. My business address is 20 Park Plaza, Suite 428, Boston,

11 Massachusetts, 02116.

13 2. Q. BY WHOM ARE YOU EMPLOYED AND IN WHAT CAPACITY? 14 A. I am employed by Itron, Inc. (“Itron”) as Director, Forecast Solutions. d/b/a NV Energy Nevada Power Company Company Power Nevada 15

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 3. Q. PLEASE BRIEFLY DESCRIBE ITRON. 17 A. Itron is a leading technology provider and critical source of knowledge to the global 18 energy and water industries. More than 3,000 utilities worldwide rely on Itron 19 technology to deliver the knowledge they require to optimize the delivery and use 20 of energy and water. Itron provides industry-leading solutions for electricity 21 metering; meter data collection; energy information management; demand 22 response; load forecasting, analysis and consulting services; distribution system 23 design and optimization; web-based workforce automation; and enterprise and 24 residential energy management. 25 26 27

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1 4. Q. ON WHOSE BEHALF ARE YOU TESTIFYING IN THIS PROCEEDING? 2 A. I am testifying on behalf of Nevada Power Company d/b/a/ NV Energy (“Nevada 3 Power” or the “Company”). 4

5 5. Q. PLEASE DESCRIBE YOUR EDUCATIONAL AND PROFESSIONAL 6 BACKGROUND. 7 A. I received my Master of Arts in Economics from San Diego State University in 8 1984 and my Bachelor of Arts in Economics from San Diego State University in

9 1981. While attending graduate school, I worked for Regional Economic Research,

10 Inc. (“RER”) as a SAS programmer. After graduating, I worked as an Analyst in

11 the Forecasting Department of San Diego Gas & Electric. I was later promoted to

12 Senior Analyst in the Rate Department. I also taught statistics in the Economics 13 Department of San Diego State University on a part-time basis. 14 d/b/a NV Energy Nevada Power Company Company Power Nevada 15 In 1986, I was employed by RER as a Senior Analyst. I worked at RER for three

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 years before moving to Boston and taking a position with New England Electric as 17 a Senior Analyst in the Forecasting Group. I was later promoted to Manager of 18 Load Research. In 1994, I left New England Electric to open the Boston office for 19 RER, which was acquired by Itron in 2002. 20 21 Over the last 25 years, I have provided support for a wide range of utility operations 22 and planning requirements, including forecasting, load research, weather 23 normalization, rate design, financial analysis, and conservation and load 24 management program evaluation. Clients include traditional integrated utilities, 25 distribution companies, independent system operators, generation and power 26 trading companies, and energy retailers. I have presented various forecasting and 27

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1 energy analysis topics at numerous forecasting conferences and forums. I also 2 direct electric and gas forecasting workshops that focus on estimating econometric 3 models and using statistical-based models for monthly sales and customer 4 forecasting, weather normalization, and calculation of billed and unbilled sales. 5 Over the last twenty years, I have provided forecast training to several hundred 6 utility analysts and analysts in other businesses. 7 8 In the area of energy and load weather normalization, I have implemented and

9 directed numerous weather normalization studies and applications used for utility

10 sales and revenue variance analysis and reporting and estimating booked and

11 unbilled sales and revenue. Recent studies include developing weather normalized

12 class profiles for cost allocation and rate design, estimating rate class hourly profile 13 models to support retail settlement activity, weather normalizing historical billing 14 sales for analyzing historical sales trends, developing customer class and weather d/b/a NV Energy Nevada Power Company Company Power Nevada 15 normalized end-use profiles as part of a utility integrated resource plan, and

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 developing normal daily and monthly weather data to support sales and system 17 hourly load forecasting. The most recent study I directed was an evaluation of 18 climate impact on long-term energy and demand for the New York independent

19 system operator (“ISO”). My resume is included in Exhibit Fox-Direct-1. 20

21 6. Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE THE PUBLIC 22 UTILITIES COMMISSION OF NEVADA (“COMMISSION”) OR ANY 23 OTHER REGULATORY AGENCY? 24 A. Yes. I have provided testimony to support the long-term forecasts as part of 25 regulatory filings for Sierra Pacific Power Company d/b/a NV Energy (“Sierra”) 26 Energy Supply Plan Update (Docket No. 12-08010), Sierra’s 8th Amendment to its 27

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1 2008 Integrated Resource Plan (Docket 10-03023) and Nevada Power’s 2010 2 Triennial Integrated Resource Plan and Energy Supply Plan (Docket 10-02009). I 3 have also provided testimony related to forecasting and weather normalization in 4 other state jurisdictions including Indiana, Florida, Arkansas, Kansas, Oklahoma,

5 and most recently Missouri. My regulatory experience is included in Exhibit Fox- 6 Direct-1.

8 7. Q. WHAT IS THE PURPOSE OF YOUR DIRECT TESTIMONY IN THIS 9 PROCEEDING?

10 A. As part of our forecast support contract, Itron was asked to assess the

11 reasonableness of using 20-year normal heating degree-days (“HDD”) and cooling

12 degree days (“CDD”) for weather normalizing test-year sales and constructing 13 budget sales and long-term energy and demand forecasts. Using a temperature 14 trend analysis approach developed as part of our recent climate impact study for the d/b/a NV Energy Nevada Power Company Company Power Nevada 15 New York ISO, we found a positive and statistically significant temperature trend

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 in Las Vegas. Translating the temperature trend into degree-rates results in trended- 17 normal CDD that are higher than the traditional 20-year normal CDD and trended- 18 normal HDD that are lower than 20-year normal HDD. Our analysis shows that 19 the trended-normal CDD and trended-normal HDD more accurately reflects current 20 weather conditions. The purpose of this testimony is to describe our analysis, show 21 results, and summarize our recommendations. 22 23 24 25 26 27

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1 II. TEMPERATURE TRENDS 2 8. Q. PLEASE DESCRIBE RECENT WORK IN ASSESSING TEMPERATURE 3 TRENDS AND IMPLICATIONS FOR ELECTRICITY LOADS. 4 A. Itron recently completed a study that I directed to evaluate long-term temperature 5 trends and impact on system load (New York ISO Climate Change Impact Study, 6 Phase I Long-Term Load Impact, December 2019); the study can be downloaded 7 from the New York ISO’s website.1 The core finding is that there is a statistically 8 measurable temperature increase across New York. We evaluated temperature

9 trends for 21 weather stations across New York. Daily temperature data was

10 available going back to 1950. Temperature trends varied significantly across

11 regions averaging for 0.5 degrees to 1.1 degrees per decade; the average trend for

12 the state of New York is 0.7 degrees per decade. Results were consistent with 13 recent state climate impact studies based on several Global Circulation Models 14 (“GCM”). GCM models are used to evaluate the impact of increasing greenhouse d/b/a NV Energy Nevada Power Company Company Power Nevada 15 gases on weather conditions, sea temperatures, tide-levels, severe weather events,

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 and other physical changes tied to an increase in greenhouse gases (primarily CO2). 17 A recent study by the San Francisco Federal Reserve Board and University of 18 Pennsylvania evaluated annual average temperature trends for 15 weather stations 19 across the United States (“PIERS Study”).2 The PIERS Study found similar 20 temperature trends with temperature increase averaging from 0.36 degrees per 21 decade (Boston) to 1.06 degrees per decade (Las Vegas). 22 23 One of our findings from the New York study is that temperatures on the coldest 24 days are increasing faster than the average temperature. While temperatures on the 25

26 1 https://www.nyiso.com/documents/20142/10773574/NYISO-Climate-Impact-Study-Phase1-Report.pdfAdd link to New York ISO website 27 2 Available at https://economics.sas.upenn.edu/pier/working-paper/2019/evolution-us-temperature-dynamics 28 Fox-DIRECT 5

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1 hottest days are increasing slower than the average temperature. The faster increase 2 in cold-day temperatures is consistent with increase in greenhouse gases. 3 Greenhouse gases act as a blanket reducing the amount of sun-generated heat 4 returned to space. The difference between the heat absorbed by the earth and the 5 heat released by the earth is known as radiative or climate forcing. The radiative 6 forcing has been increasing and is expected to increase in the future. Increasing 7 temperatures will translate into higher cooling-related electric sales and a decrease 8 in heating related sales. While cooling energy requirements can be expected to

9 increase across all the months, the impact of the faster increase in minimum

10 temperatures results in a faster increase in shoulder month cooling requirements

11 than in peak summer months. Effectively summers are coming earlier and lasting

12 longer. 13

14 9. Q. PLEASE DESCRIBE YOUR ANALYSIS OF LAS VEGAS’ WEATHER d/b/a NV Energy Nevada Power Company Company Power Nevada 15 TREND.

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 A. We conducted a weather trend analysis for Las Vegas similar to that for New York. 17 The Company provided us with daily maximum and minimum temperatures from 18 McCarran International Airport. Using a simple trend regression model, we can 19 see a clear linear, increasing temperature trend as far back as 1950. This is shown 20 in Figure Fox-Direct-1.

21 22 23 24 25 26 27

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1 Figure Fox-Direct-1: Las Vegas Average Temperature Trend (1950 to 2019) 2 75 3 70 65 4 60 Variable Coefficient StdErr T-Stat P-Value 55 5 CONST 61.052 0.537 113.709 0.00% 50 TrendVar 0.084 0.006 13.587 0.00% 6 45 40 7 35 30 8 1950 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 2018 9 AvgTemp Trend

12 The trend coefficient is 0.084 and is statistically significant. The coefficient implies 13 that average temperature has been increasing 0.084 degrees per year or 0.84 degrees 14 per decade. The temperature trend is even stronger when evaluating temperature d/b/a NV Energy Nevada Power Company Company Power Nevada 15 data starting in 1970. Over the last 50 years, average annual temperature has been

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 increasing 1.1 degrees per decade. The Las Vegas temperature trend is stronger 17 than in most regions in the country; part of this trend is likely associated with the 18 relatively strong population growth and construction activity that has contributed 19 to physical infrastructure increasing regional heat absorption; this is often referred 20 to as an urban heat island effect. The temperature trend is close to the trend 21 estimated in the PIERS Study and is shown in Figure Fox-Direct-2. 22 23 24 25 26 27

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1 Figure Fox-Direct-2: Average Temperature Trend (1970 to 2019) 2 3 4 5 6 7 8

11 The temperature trend from 1970 to 2019 is highly statistically significant with

12 average annual temperature increasing from 66 degrees in 1970 to nearly 72 13 degrees in 2019. While average temperature shows a strong positive trend, the 14 maximum annual temperature has been virtually flat. Figure Fox-Direct-3 shows d/b/a NV Energy Nevada Power Company Company Power Nevada 15 the maximum annual temperature between 1970 and 2019. and Sierra Pacific Power Company Pacific Power Sierra and Company 16 17 Figure Fox-Direct-3: Las Vegas Maximum Temperature Trend 18 130 19 110 20 90 21 70 22 50 23 30 24 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 25 MaxTemp Trend

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1 While there is a slight positive trend of 0.19 degrees per decade, the trend is not 2 statistically significant. The average maximum temperature over this period is 113 3 degrees. 4 5 Increasing minimum temperatures are the largest contributor to overall temperature 6 change. The annual minimum temperature in Las Vegas has increased from 14 7 degrees in 1970 to 28 degrees in 2019. Minimum temperatures have been

8 increasing 2.74 degrees per decade, as shown in Figure Fox-Direct-4. 9

10 Figure Fox-Direct-4: Las Vegas Minimum Daily Temperature Trend

12 13 14 d/b/a NV Energy Nevada Power Company Company Power Nevada 15

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 17 18 19

20 21 10. Q. HOW ARE TEMPERATURE TRENDS TRANSLATED INTO HEATING 22 AND COOLING DEGREE-DAYS? 23 A. The standard approach for deriving normal HDD and CDD is to first calculate daily 24 degree-days from average daily temperature data and then average the daily degree- 25 days over a historical time period. In Nevada, general rate cases, resource plans, 26 budget forecasts, and financial reporting have been based on a rolling 20-year 27

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1 period. This approach is common and used by many electric utilities. The 2 advantage of a 20-year moving average (versus a fixed 30-year period as the 3 National Oceanic and Atmospheric Administration uses) is that it rolls in increasing 4 temperatures as the early year falls off and the most current year is added. Some 5 jurisdictions have gone to a 10-year rolling average for calculating normal weather 6 as this gives even more weight to recent weather conditions. The problem, 7 however, with a 10-year average is that there are significant variations in the 8 calculated normal weather from one year to the next as each year carries a 10

9 percent weight. It is difficult to develop an accurate and consistent sales and energy

10 forecasts and track normalized sales trends if the normal temperature reference

11 point is changing significantly every year.

12 13 The approach used by Itron for capturing temperature trends in the Las Vegas area 14 was developed as part of the New York ISO Climate Impact Study. We start the d/b/a NV Energy Nevada Power Company Company Power Nevada 15 approach by estimating the 20-year normal average temperatures similar to the

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 Nevada Power’s approach for calculating normal HDD and CDD. The 20-year 17 period we used is 2000 through 2019, which is the same period used by Nevada 18 Power. Given temperatures have been increasing during the last 20-years, we 19 assume that the calculated average daily temperatures are more representative of 20 expected temperatures in 2010 (the middle of the estimation period) than it is in 21 2019 (the end of the estimation period). Figure Fox-Direct-5 shows the resulting 22 average temperature profile. 23 24 25 26 27

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1 Figure Fox-Direct-5: Normal Average Daily Temperature 2 3 4 5 6

7 8 Temperatures are averaged within the month (versus by date) as it gives higher 9 average temperatures in the peak months and lower average temperatures in the

10 winter months; this results in monthly normal HDD and CDD in the start year

11 (2010) that are consistent with Nevada Power’s 20-year normal HDD and CDD

12 calculated from daily degree-days. 13

14 Starting in 2010, the normalized temperature profile is trended up based on the d/b/a NV Energy Nevada Power Company Company Power Nevada 15 historical average annual temperature trend of 0.113 degrees per year.

and Sierra Pacific Power Company Pacific Power Sierra and Company 16

17 Trended normal HDD and CDD are calculated from the trended normal average 18 temperatures. Figure Fox-Direct-6 compares actual CDD with a temperature base 19 of 65 degrees against the trended normal (in blue) and the 20-year normal (grey 20 dashed line).

21 22 23 24 25 26 27

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1 Figure Fox Direct 6: Comparison of Actual and Normal CDD (Base 65 degrees) 2 3 4 5 6 7 8

12 As depicted, the trended-normal CDD tracks actual CDD more closely than the 20- 13 year normal CDD. By 2019, trended normal CDD is 226 degree-days higher than 14 the 20-year normal. Based on historical temperature trends, the number of CDD d/b/a NV Energy Nevada Power Company Company Power Nevada 15 can be expected to increase 1.1 degrees per decade long into the future; there is no

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 indication in the data set that the trend is slowing. Climate impact studies based on 17 GCMs expect similar increasing temperature trends for the most likely greenhouse 18 gas paths. 19 20 With increasing temperatures, the number of HDD declines. Figure Fox-Direct-7 21 compares actual HDD (with a 60 degree-day base temperature) against trended 22 normal HDD and the 20-year normal HDD. 23 24 25 26 27

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1 Figure Fox Direct 7: Comparison of Actual and Normal HDD (Base 60 degrees) 2 3 4 5 6 7 8

12 The trended-normal HDD tracks the downward HDD trend. By 2019 trended 13 normal HDD are 135 degrees lower than the 20-year normal HDD. 14 d/b/a NV Energy Nevada Power Company Company Power Nevada 15 11. Q. IN THE 2019 SIERRA RATE CASE THE COMMISSION ORDERED USE

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 OF A LINEAR TREND THROUGH 20 YEARS OF ANNUAL HDD AND 17 CDD TO DETERMINE TEST-YEAR NORMAL WEATHER. WOULD 18 YOU SUPPORT USING THIS APPROACH? 19 A. No. While a trend through historical annual degree-days will find the right 20 direction, there can be significant year-to-year variation in calculated normal HDD 21 and CDD. For example, the normal weather could be considerably different from 22 year-to-year when the model is updated with new data. This is because a linear 23 trend approach is based on just 20 data points. When fitting a linear regression line 24 with small dataset, a year with an extreme summer or a cold winter will have 25 significantly more of an impact on the calculated normal degree-days than the years 26 that are closer to the average. This problem is made worse if the outliers are on the 27

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1 tail ends, resulting in a higher estimate of annual change in temperature than 2 appropriate. The problem illustrated in Figure Fox-Direct-8.

3 4 Figure Fox Direct 8: Annual Trended Cooling Degree-Days

5 4,400

6 4,200

7 4,000 8 3,800 9 3,600

10 3,400

11 3,200 12 3,000 13 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 14 Est Through 18 Est Through 19 Actual d/b/a NV Energy Nevada Power Company Company Power Nevada 15

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 The dash line are actual CDDs (base of 65 degrees). The dotted line is the trend 17 estimated with 20-years of annual data through 2018. The solid line is the trend 18 line estimated with 20-years of annual data through 2019. The 2019 trend line is 19 lower than the 2018 trend line largely because 2019 was an unusually cool summer; 20 this pulled down the estimated CDD trend. Based on this calculation, normal 2019 21 CDD would be lower than normal 2018 CDD. 22

23 The approach we outlined addresses this problem; CDDs will increase at a constant 24 rate and HDD will decline at a constant rate. The starting point (in this case 2010 25 normal temperatures) are calculated from 20-years of daily temperature data (2000 26 to 2019); this is over 7,300 data points. The temperature trend that is then applied 27

28 Fox-DIRECT 14

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1 to starting year is based on 50 years of annual temperature data (1970 to 2019). 2 Adding one more year will only marginally impact the trend.

4 III. CONCLUSION

5 12. Q. CAN YOU SUMMARIZE YOUR ANALYSIS? 6 A. Yes. I recommend that the Company consider using the approach outlined in my 7 testimony for calculating test-year normal weather and forecasting sales, energy, 8 and peak demand. 9

10 From our assessment of Las Vegas temperature trends and prior work with the New 11

York ISO, we can see a clear statistical trend in increasing temperatures. Normal 12 2019 CDDs calculated from trended temperature data are higher than CDD 13 calculated from the traditional 20-year rolling average and trended-normal HDD 14 d/b/a NV Energy are lower than that calculated from the 20-year rolling degree-day calculation. We Nevada Power Company Company Power Nevada 15 would expect cooling sales to increase with warming temperatures and heating- and Sierra Pacific Power Company Pacific Power Sierra and Company 16 related sales to decline. Normalized degree-days based on the temperature trend 17 should result in normalized sales closer to sales observed over the last few years. 18

19 Our approach utilizes temperature trends in calculating normal HDD and CDD; 20 updating the model to include the most recent weather data will not significantly 21 impact the trend. This is a better approach than fitting a trend line through 20-years 22 or annual HDD and CDD where one or two years can significantly impact the trend 23 and resulting normal HDD and CDD calculations. 24

25 Another advantage of our approach is normal degree-days are based on temperature 26 trends rather than historical degree-day trends. While trending daily degree-days or 27

28 Fox-DIRECT 15

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1 temperature give similar results, Climatologists discuss climate change impacts in 2 terms of temperature – not degree days; temperature is a concept everyone 3 understands. By modeling temperature trends, we can compare historical trend- 4 based projections with climate model projections, compare temperature trends with 5 other regions, and explain to people outside the utility industry our expectation of 6 future temperatures and temperature impact on electricity use and peak demand. 7

8 13. Q. DOES THIS CONCLUDE YOUR PREPARED DIRECT TESTIMONY? 9 A. Yes, it does.

12 13 14 d/b/a NV Energy Nevada Power Company Company Power Nevada 15

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 17 18 19 20 21 22 23 24 25 26 27

28 Fox-DIRECT 16

Page 227 of 247 Exhibit Fox-Direct-1 Page 1 of 11

Resume and Project Experience Eric Fox Director, Forecast Solutions Itron, Inc.

Education

 M.A. in Economics, San Diego State University, 1984

 B.A. in Economics, San Diego State University, 1981

Employment History

 Director, Forecasting Solutions, Itron, Inc. 2002 - present

 Vice President, Regional Economic Research, Inc. (now part of Itron, Inc.), 1999 – 2002

 Project Manager, Regional Economic Research, Inc., 1994 – 1999

 New England Electric Service Power Company, 1990 – 1994 Positions Held: ─ Principal Rate Analyst, Rates ─ Coordinator, Load Research Senior Analyst, Forecasting ─  Senior Economist, Regional Economic Research, Inc., 1987 – 1990

 San Diego Gas & Electric, 1984 – 1987 Positions Held: ─ Senior Analyst, Rate Department Analyst, Forecasting and Evaluation Department ─  Instructor, Economics Department, San Diego State University, 1985 – 1986

Page 228 of 247 Exhibit Fox-Direct-1 Page 2 of 11

Experience Mr. Eric Fox is Director, Forecasting Solutions with Itron where he directs electric and gas analytics and forecasting projects and manages Itron’s Boston office. Mr. Fox has over 30 years of forecasting experience with expertise in financial forecasting and analysis, long-term energy and demand forecasting, and load research.

Mr. Fox and his team focus on developing and implementing forecast applications to streamline and support utility business operations. This work includes directing development and implementation of Itron’s integrated sales and revenue forecasting application (ForecastManager.net) and load research system (LRS). He also engages in forecast support work, which includes developing energy and demand forecasts for financial and long-term planning, billed and unbilled sales and revenue analysis, weather normalization for monthly sales variance analysis and rate case support, and analyzing technology and economic trends and their impact on long-term energy usage.

Mr. Fox has provided expert testimony and support in rate and regulatory related issues. This support has included developing forecasts for IRP and rate filings, weather normalizing sales and demand for rate filing cost of service studies, providing rate case support and direct testimony and conducting forecast workshops with regulatory staff. He is one of Itron’s primary forecast instructors. He provides forecast training through workshops sponsored by Itron, utility on-site training programs, and workshops held by other utility organizations.

Prior to joining RER/Itron, Mr. Fox supervised the load research group at New England Electric where he oversaw systems development, directed load research programs, and customer load analysis. He also worked in the Rate Department as a Principal Analyst where he was responsible for DSM rate and incentive filings, and related cost studies. The position required providing testimony in regulatory proceedings.

Page 229 of 247 Exhibit Fox-Direct-1 Page 3 of 11

Projects, Reports, and Presentations

Long-Term Data Center Load Demand Forecast, Dominion Energy, April 2020

Long-Term Model Review, Dominion Energy, April 2020

Sales and Revenue Forecast for 2020 Rate Case, with Mike Russo, Hydro Ottawa, March 2020

New York ISO Climate Impact Study: Phase 1 Long-Term Load Impact, New York ISO, December 2019, with Rich Simons, Oleg Moskatov, and Mike Russo

Cold Climate Heat Pump Study, Sample Design, December 2019, with Rich Simons, Nova Scotia Power

Long-Term Energy and Demand Forecast, 2020 IRP, October 2019, with Mike Russo, Vectren (A CenterPoint Energy Company)

Fundamentals of Forecasting Workshop, October 2019, Washington DC

Development of Energy Efficiency Conservation Curves for Long-Term System Load Model, ISO New England, September 2019 with Mike Russo

Test-Year Weather Normalization and Filed Testimony, July 2019, with Oleg Moskotov, Liberty Utilities

Advanced Forecast Topics Workshop, Energy Forecasting Group 2019 Annual Meeting, April 2, 2019, Boston NA

Long-Term Forecast Development and Modeling Workshop. Salt River Project, Tempe Arizona, March 26-27, 2019

Sales and Revenue Forecast for 2019 Rate Filing, with Oleg Moskatov and Mike Russo, Green Mountain Power Company, March 2019

Modeling Long-Term Peak Demand - Forecasting Workshop. ISO New England, December 19, 2018

Testimony and Supporting Sales Weather-Normalization for the 2018 Kansas Rate Case. Empire District Electric/Liberty Utilities, November 2018.

Load Research Training – Methods, Design, and LRS Applications. Colorado Springs Utilities. November 29-30, 2018

2018 Benchmark Survey – Energy Trends, Projections, and Methods. Electric Utility Forecaster Forum, November 13-14, 2018. Orlando, Florida

Page 230 of 247 Exhibit Fox-Direct-1 Page 4 of 11

Forecasting Methods, Model Development, and Training. WEC Energy Group, Milwaukee WI, September 20 -21, 2018.

Development of Budget Sales and Customer Forecast Models, Report, and Forecast Training. Alectra Utilities, July 2018

Electricity Forecasting in a Dynamic Market. Presentation and Panel Participant, Organization of MISO States, Forecast Workshop & Spring Seminar, Des Moines Iowa, March 21 -23, 2018.

Load Research Methods and Results, IPL and Indiana Office of Utility Consumer Counselor (OUCC), March 12, 2018

Sales Weather Normalization to Support the IPL 2018 Rate Case, with Richard Simons, Indianapolis Power & Light, December 2017

Dominion Long-Term Electricity Demand Forecast Review. Dominion Energy Virginia, September 15, 2017.

Vermont Long-Term Energy and Demand Forecast, with Mike Russo and Oleg Moskatov, Presented to the Vermont State Forecast Committee, August 1, 2017

Utility Forecasting Trends and Approaches, with Rich Simons and Mike Russo, Presented to the Energy Information Administration, July 27, 2017

Sales and Revenue Forecast Delivery and Presentation, with Mike Russo, Indianapolis Power & Light, July 13, 2017

Forecasting Gas Demand When GDP No Longer Works, Southern Gas Association Gas Forecasters Forum, June13 to 17, Ft Lauderdale, Florida

Behind the Meter Solar Forecasting, with Rudy Bombien, Duke Energy, Electric Utility Forecaster Forum, May 3 to 5, 2017, Orlando, Florida

Advanced Forecast Training Workshop, with Mike Russo, EFG Meeting, Chicago Illinois, April 25th, 2017

Budget-Year Electric Sales, Customer, and Revenue Forecast, with Oleg Moskatov and Mike Russo, Green Mountain Power Company, March 2017

Page 231 of 247 Exhibit Fox-Direct-1 Page 5 of 11

Solar Load Modeling, Statistic Analysis, and Software Training, Duke Energy, March 1 to 3, 2017

Development of a Multi-Jurisdictional Electric Sales and Demand Forecast Application, with Mike Russo and Rich Simons, Wabash Valley Power Cooperative, January, 2017,

Net Energy Metered Customer Sample Design and Training, Nevada Energy, December 1 – 2, 2016

Development of Long-Term Regional Energy and Demand Forecast Models, Tennessee Valley Authority, November 14, 2016

New York Energy Trends and Long-Term Energy Outlook, New York ISO Forecasting Conference, Albany New York, October 28, 2016

Fundamentals of Forecasting Workshop, with Mark Quan, Chicago, Illinois, September 26th – 28th, 2016

Building Long-Term Solar Capacity and Generation Model, Duke Energy, September 8 and 9th, Charlotte North Carolina

When GDP No Longer Works - Capturing End-Use Efficiency Trends in the Long-Term Forecast, EEI Forecast Conference, August 21 – 23rd, 2016, Boston Massachusetts

2016 Long-Term Electric Energy and Demand Forecast, Vectren Corporation, August 4, 2016

Forecasting Behind the Meter Solar Adoption and Load Impacts, with Mike Russo, Itron Brown Bag, July 12, 2016

2016 Long-Term Electric Energy and Demand Forecast, IPL, July 19, 2016

Long-Term Forecast Methodology, IPL Integrated Resource Plan Forecast, Presented to the Indiana Utility Regulatory Commission Staff, June 15, 2016

Long-Term Energy and Demand Forecast, Burlington Electric Vermont, May 2016

Statistical Mumbo Jumbo: It’s Not Really, Understanding Basic Forecast Model Statistics, Electric Utility Forecasting Forum, Chattanooga, Tennessee, April 7 to 8, 2016

Page 232 of 247 Exhibit Fox-Direct-1 Page 6 of 11

Solar Load Modeling and Forecast Review, NV Energy, Nevada Public Utilities Commission Staff, and Bureau of Consumer Protection, Reno Nevada, January 29, 2016

Statistically Adjusted End-Use Modeling Workshop, New York ISO, December 10, 2015

Long-Term Energy and Load Modeling Workshop, Chicago Illinois, October 29th – 30th

Integrating Energy Efficiency Program Impacts into the Forecast, Indiana Utility Regulatory Commission, Contemporary Issues Conference, September 1, 2015

Residential and Commercial End-Use Energy Trends (SAE Update), Itron Webinar for EFG Members, with Oleg Moskatov and Michael Russo, July 22, 2015

Capturing End-Use Efficiency Improvements through the SAE Model, 3rd CLD Meeting, Vaughan, Ontario, June 24 2015

Modeling New Technologies – When Regression Models Don’t Work, Itron Webinar Brown Bag Series, with Oleg Moskatov and Michael Russo, June 9, 2015

Long-Term Demand Forecasting Overview and Training, KCP&L, April 2015

Budget Year 2016, Sales, Revenue, and Load Forecast, Green Mountain Power Company, March 2015

Forecast Review and Training for 2015 Rate Filing, PowerStream, January 2015

Rate Class Customer and Sales Forecast: 2015 Rate Filing, Hydro Ottawa, January 2015

Forecast Systems Implementation and Training, Entergy, January 2015

Long-Term Energy and Demand Forecasting, Ontario Ministry of Energy, January 2015

Load Research Sample Design, Nova Scotia Power, November 2014

Vermont Long-Term Energy and Demand Forecast, VELCO, November 2014

Energy Trends and Utility Survey Results, EUFF Meeting, October 2014

Fundamentals of Forecasting Workshop, Boston, MA, October 2014

Page 233 of 247 Exhibit Fox-Direct-1 Page 7 of 11

Gas Forecasting Workshop with Minnesota PUC Staff, Integrys, September 2014

Load Research System Implementation and Training, NVEnergy, June 2014

Forecasting and Modeling Issues Workshop, Ontario, CA, July 2014

Unbilled Sales Analysis and System Implementation, KCP&L March 2014

Gas Sales and Revenue Forecast Model Development, TECo, December 2013

Forecast Model Development and Training, Duke Energy, October 2013

Sales and Revenue Forecast, GMP, August 2013

Forecast Support and Testimony, TECo, June 2013

Long-Term Energy and Demand Forecast, IRP Filing, GMP, May 2013

Long-Term Energy and Demand Forecast, IRP Filing, Vectren, March 2013

Statistical End-Use Model Implementation, Nova Scotia Power, December 2012

Fundamentals of Forecasting, Workshop, Boston, MA, November 2012

Rate Class Profile Development for Settlement Support, NYSEG and RGE (Iberdrola), September 2012

Budget Forecasting System Implementation, and Training, Horizon Utilities, August 2012

Commercial Sales Forecasting: Getting it Right, Itron Brownbag Web Presentation, June 2012

Long-Term Energy Trends and Budget Forecast Assessment, Tampa Electric Company, June 2012

Budget-Year 2013 Sales and Revenue Forecast, Green Mountain Power, April 2012

Long-Term Residential and Commercial Energy Trends and Forecast, Electric Utility Forecasting Week, Las Vegas, May 2012

NV Energy Forecast Workshop, with Terry Baxter, NV Energy, March 2012

Page 234 of 247 Exhibit Fox-Direct-1 Page 8 of 11

Commercial Sales Forecasting, the Neglected Sector, Electric Utility Forecasting Forum, Orlando, November 2011

Vermont Long-Term Energy and Demand Forecast, Vermont Electric Transmission Company, November 2011

Fundamentals of Forecasting Workshop, Boston, September 2011

Forecasting Top 100 PPL Load-Hours, with David Woodruff, AEIC Summer Load Research Conference, Alexandra, VA, August 2011

Budget and Long-Term Energy and Demand Forecast Model Development, Central Electric Power Cooperative, April 2011

Development of an Integrated Revenue Forecasting Application, TVA, March 2011 Integrating Energy Efficiency Into Utility Load Forecasts, with Shawn Enterline, 2010 ACEE Summer Study on Energy Efficiency in Buildings, August 2010

Using Load Research Data to Develop Peak Demand Forecasts, AEIC Load Research Conference, Sandestin, FL, August 2010

Development of a Long-term Energy and Demand Forecasting Framework, Consumer Energy, October 2009

Review of Entergy Arkansas Weather Normalization Methodology for the 2009 Rate Case, Entergy Arkansas Inc., September 2009

Green Mountain Power Budget Year and Rate Case Sales and Revenue Forecast, Green Mountain Power, May 2009

Vectren Gas Peak-Day Design Day Load Forecast and Analysis, Vectren Energy, April 2009

Nevada Power, Long-Term Energy and Demand Forecast, NV Energy, March 2009

Estimating End-Use Load Profiles, Leveraging Off of Load Research Data, Western Load Research Conference, Atlanta, March 2009

Fundamentals of Load Forecasting Workshop, Orlando, March 2009

DPL Long-Term Energy and Demand Forecast, 2009 IRP Filing, Dayton Power & Light, February 2009

Development and Application of Long-Term End-Use Hourly Load Forecasting Model, AEP, October 2008

Page 235 of 247 Exhibit Fox-Direct-1 Page 9 of 11

Load Research from the User’s Perspective, AEIC Annual Load Research Conference, Oklahoma City, August 2008

OGE Weather Normalized Sales Study, Estimation of Weather Normalized Sales for 2007 Rate Case, July 2008

Vermont Long-Term and Zonal Demand Forecast, Vermont Power Company, July 2008

Budget Forecast System Implementation, Entergy June 2008

Approaches for Analyzing Electric Sales Trends, Electric Forecasting Group, Las Vegas, May 2008

Page 236 of 247 Exhibit Fox-Direct-1 Page 10 of 11

Regulatory Experience

July 2019: Provided testimony and supporting sales and weather-normalization for the 2020 Missouri rate case. Empire District Electric/Liberty Utilities.

November 2018: Provided testimony and supporting sales weather-normalization for the 2018 Kansas rate case. Empire District Electric/Liberty Utilities.

December 2017: Provided testimony and support related to sales weather-normalization for the 2018 rate case. Indianapolis Power & Light.

October 2017: Provided testimony and support for the Dominion Energy Virginia 2017 Integrated Resource Plan

Jan 2015 – Dec 2016: Assisted Power Stream with developing and supporting the 2015 rate case sales and customer forecast before the Ontario Energy Board

Jan 2015 – Dec 2016: Assisted Hydro Ottawa with developing and supporting the 2015 rate case sales and customer forecast before the Ontario Energy Board

September 2015: Provided testimony and support related to sales weather-normalization for the 2015 rate case. Indianapolis Power & Light

October 2014 – July 2015: Assisted Entergy Arkansas with developing and supporting weather adjusted sales and demand estimates for the 2015 rate case.

September 2014: Assisted with developing the budget sales and revenue forecast and provided regulatory support related Horizon Utilities 2014 rate filing before the Ontario Energy Board

August 2013: Reviewed and provided testimony supporting Sierra Pacific Power Company’s forecast for the 2013 Energy Supply Plan before the Nevada Public Utilities Commission

July 2013: Reviewed and provided testimony supporting Tampa Electric’s forecast for the 2013 rate case before the Florida Public Service Commission

March 2013: Reviewed and provided testimony supporting Entergy Arkansas sales weather normalization for the 2013 rate filing before the Arkansas Public Service Commission

June 2012: Reviewed and provided testimony supporting Nevada Power Company’s 2012 Long-Term Energy and Demand Forecast before the Nevada Public Utilities Commission

Page 237 of 247 Exhibit Fox-Direct-1 Page 11 of 11

May 2010: Provided testimony supporting Sierra Pacific Power’s Company’s 2010 Long- Term Energy and Demand Forecast before the Nevada Public Utilities Commission

March 2010: Assisted with development of the IRP forecast and provided testimony supporting Nevada Power Company’s 2010 Long-Term Energy and Demand Forecast before the Nevada Public Utilities Commission

August 2009: Reviewed Entergy Arkansas weather normalization and provided supporting testimony before the Arkansas Public Service Commission

February 2006: Developed long-term forecast and provided testimony to support Orlando Utilities Commission Need for PowerApplication before the Florida Public Service Commission

July 2005: Developed sales and customer forecast and provided testimony to support Central Hudson’s electric rate filing before the New York Public Service Commission

April 2004: Held Weather Normalization Workshop with the Missouri Public Service Commission Staff

July 2001: Conducted workshop on long-term forecasting with the Colorado Public Utilities Commission Staff

October 1993: Submitted testimony in support of DSM earned incentives and related rate design before the Massachusetts Department Public Utilities, and Rhode Island Public Utilities Commission. Position: Principal Analyst, Rate Department, New England Power Service Company. Supervisor: Mr. Larry Reilly.

June 1993: Testified in matters related to the annual Energy Conservation Services Charge before Massachusetts Department Public Utilities. Position: Principal Analyst, Rate Department, New England Power Service Company. Supervisor: Mr. Larry Reilly.

June 1990: Submitted testimony in Nevada Power’s behalf in matters related to gas transportation rates proposed by Southwest Gas in Southwest Gas rate proceedings before Nevada Public Utilities Commission. Position: Sr. Analyst, Regional Economic Research, Inc.

October 1988: Testified to development and application of a Gas Marginal Cost of Service Study for unbundling natural gas rates as part of a generic hearing to restructure the natural gas industry in California before the California Public Utilities Commission. Position: Sr. Analyst, Rate Department, San Diego Gas & Electric. Supervisor: Mr. Douglas Hansen

Page 238 of 247 Page 239 of 247 MARIYA COLEMAN

Page 240 of 247

1 BEFORE THE PUBLIC UTILITIES COMMISSION OF NEVADA

2 Nevada Power Company d/b/a NV Energy Docket No. 20-06___ 3 2020 General Rate Case

4 Prepared Direct Testimony of

5 Mariya Coleman

6 Revenue Requirement 7

8 1. Q. PLEASE STATE YOUR NAME, JOB TITLE, EMPLOYER AND BUSINESS 9 ADDRESS.

10 A. My name is Mariya Coleman. I am the Director of Corporate Insurance for Nevada

11 Power Company d/b/a NV Energy (“Nevada Power” or the “Company”) and Sierra

12 Pacific Power Company d/b/a NV Energy (“Sierra,” and together with Nevada 13 Power, the “Companies”). My work address is 6226 West Sahara Avenue, Las 14 Vegas, Nevada, 89146. I am filing testimony on behalf of Nevada Power. d/b/a NV Energy Nevada Power Company Company Power Nevada 15

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 2. Q. WHAT ARE YOUR PRIMARY RESPONSIBILITIES AS DIRECTOR OF 17 COPORATE INSURANCE FOR THE COMPANIES? 18 A. As Director of Corporate Insurance, I am responsible for the acquisition and 19 management of all corporate insurance programs, excluding benefits-related plans 20 and for monitoring the operations of the Companies to ensure compliance with 21 policies and procedures for reducing their risk profile and exposure. 22

23 3. Q. PLEASE DESCRIBE YOUR EDUCATIONAL BACKGROUND AND 24 EMPLOYMENT EXPERIENCE. 25 A. I joined the Companies as a Risk Analyst in 2010 and worked in Corporate 26 Insurance through 2014. From 2014 through 2017, I was the Manager of Corporate 27 Insurance. In 2017, I was named the Director of Corporate Insurance. I have a

28 Coleman-DIRECT 1

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1 Bachelor of Science in Finance from University of Nevada, Las Vegas, and a 2 Master’s in Business Administration from University of Nevada, Las Vegas. I 3 completed the Master’s in Renewable Engineering Certificate program from 4 University of Nevada, Reno, in 2014. A complete statement of my qualifications

5 is set forth in Exhibit Coleman-Direct-1. 6

7 4. Q. HAVE YOU PREVIOUSLY TESTIFIED BEFORE THE PUBLIC 8 UTILITIES COMMISSION OF NEVADA (“COMMISSION”)? 9 A. Yes, I have testified previously before the Commission. My most recent appearance

10 in a general rate case was in Nevada Power’s 2017 general rate case, Docket No.

11 17-06003.

13 5. Q. ARE YOU SPONSORING ANY EXHIBITS WITH YOUR TESTIMONY 14 OTHER THAN YOUR STATEMENT OF QUALIFICATIONS? d/b/a NV Energy Nevada Power Company Company Power Nevada 15 A. No.

and Sierra Pacific Power Company Pacific Power Sierra and Company 16

17 6. Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY IN THIS 18 PROCEEDING? 19 A. I support and explain the reasonableness of the changes to four categories of the 20 annual insurance costs reflected on Schedule H-CERT-22. Schedule H-CERT-22 21 shows that Nevada Power’s annualized cost of property insurance has decreased 22 from $915,000 (as recorded on December 31, 2019) to $890,000 (estimated as of 23 May 31, 2020). Schedule H-CERT-22 also reflects the removal of the directors’ 24 and officers’ liability insurance which expired on December 19, 2019. There will 25 be no future allocations for this insurance. The annual cost of excess liability 26 27

28 Coleman-DIRECT 2

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1 insurance has increased from $2,237,000 (as recorded on December 31, 2019) to 2 $2,420,000 (estimated as of May 31, 2020).

4 7. Q. PLEASE EXPLAIN THE DECREASE IN THE ANNUALIZED COST OF 5 PROPERTY INSURANCE. 6 A. The decrease in the annualized cost of property insurance was achieved by a 7 decrease in the property insurance rate, and the reimbursement of some premiums 8 for not having any claims during the policy period.

10 8. Q. PLEASE EXPLAIN THE INCREASE IN THE ANNUALIZED COST OF

11 LIABILITY INSURANCE.

12 A. The increase in the annualized cost of excess liability insurance is primarily due to 13 a midterm premium adjustment for the general liability policy. The annual audit of 14 the Companies’ losses was performed and determined that additional general d/b/a NV Energy Nevada Power Company Company Power Nevada 15 liability premium was required due to high claims costs which cannot be sustained

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 at a lower premium. Excess liability also had a small increase due to market 17 conditions. 18

19 9. Q. ARE WILDFIRE INSURANCE COSTS INCLUDED IN THE COSTS 20 REFLECTED IN H-CERT-22? 21 A. Yes, they are. 22 23 24 25 26 27

28 Coleman-DIRECT 3

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1 10. Q. ARE THE ANNUAL COSTS OF INSURANCE SHOWN ON SCHEDULE 2 H-CERT-22 REFLECTIVE OF NEVADA POWER’S ONGOING ANNUAL 3 INSURANCE COSTS? 4 A. Yes, they are. 5

6 11. Q. DOES THIS CONCLUDE YOUR PREPARED DIRECT TESTIMONY? 7 A. Yes, it does. 8

12 13 14 d/b/a NV Energy Nevada Power Company Company Power Nevada 15

and Sierra Pacific Power Company Pacific Power Sierra and Company 16 17 18 19 20 21 22 23 24 25 26 27

28 Coleman-DIRECT 4

Page 244 of 247 Exhibit Coleman-Direct-1 Page 1 of 2

QUALIFICATIONS OF WITNESS Mariya Coleman Director, Corporate Insurance NV Energy 6226 W. Sahara Ave Las Vegas, NV 89146

EDUCATION University of Nevada-Las Vegas, Lee Business School M.B.A., Finance – 2010 University of Nevada-Las Vegas B.S.B.A., Finance – 2008

PROFESSIONAL EXPERIENCE NV Energy, Las Vegas, Nevada Director, Corporate Insurance, July 2017 – present Manager, Corporate Insurance, January 2015 – July 2017 • Direct the Corporate Insurance function for Berkshire Hathaway Energy Co. (“BHE”) reporting directly to the Senior Vice President and General Counsel of BHE • Responsible for $30 million global insurance program covering $100 billion in assets, $19.8 billion in revenue, 17,000 miles of natural gas pipelines and 23,000 employees world wide • Manage NV Energy captive insurance subsidiary and BHE captive subsidiary • Coordinate with multiple business units at the operating platforms to develop risk and insurance cost forecasts as well as allocation strategy • Provide insurance related expertise for all major merger and acquisition activities

NV Energy, Las Vegas, Nevada Senior Analyst, September 2011-December 2015 Analyst, August 2010-September 2011 • Supported the restructuring of coverage terms, limits and risk retention levels generating annual premium spend savings in excess of $5 million vs. 2010 levels • Participated in the (BHE) acquisition integration team • Principal analyst on renewals of liability, property, worker’s compensation and environmental insurance programs • Provided expertise on contractual risk transfer to multiple (BHE) businesses and created a central standard for contractual terms • Optimized risk reduction efforts within Power Generation team by recreating monthly reporting format for Risk Performance Metric • Led 2011, 2013 and 2014 General Rate Case submission and testimony development for Corporate Insurance • Provided industry accepted language improvements to insurance and indemnity provisions in major and minor agreements with counterparties

Page 245 of 247 Exhibit Coleman-Direct-1 Page 2 of 2

RELEVANT INDUSTRY/PROFESSIONAL INFORMATION Graduate Certificate in Renewable Energy, University of Nevada, Reno, 2014; Leadership Henderson Graduate, 2013; NV Chapter of Risk and Insurance Management Society Board, 2013- 2015; AEGIS Loss Control Task Force, 2015-present; Associate in Claims (AIC), The Institutes, 2015; Associate in Risk Management (ARM), The Institutes, 2013; Chartered Property Casualty Underwriter (CPCU), The Institutes, 2013

Page 246 of 247 1 AFFIRMATION

2 3 Pursuant to the requirements of NRS 53.045 and NAC 703.710, MARIYA

4 COLEMAN, states that she is the person identified in the foregoing prepared testimony and/

5 or exhibits; that such testimony and/or exhibits were prepared by or under the direction of 6 said person; that the answers and/or information appearing therein are true to the best 7 of his knowledge and belief; and that if asked the questions appearing therein, his answers

8 thereto would, under oath, be the same.

c,s= 10 I declare under penalty of perjury that the foregoing is true and correct. ;;., E = 0 11 �u t,ll..... e ...... 0 � u � � 12 Date: 5/ 'Z-(o ( �o '2.-G3 �-�r;i;"l u MARIYACOLEMAN �5 � � u 13 c,sc,s --- c,s � ,Q -.::, c,s co:s ,_ ;a 14 z� ·-�,_ 00= 15 16 17

18 19 20

25 26 27 28

Page 247 of 247