Valley Electric Association, Inc.

SCR19 Production & Use of Energy Committee Presentation

Thomas Husted, CEO April 20th, 2010 Valley Electric Association, Inc.

VEA Overview Valley Electric Association, Inc. Member-owned cooperative • We’re owned by the consumers we serve • Our consumers are “members” and “member- owners” • We’re guided by 7 cooperative business principles Valley Electric Association, Inc. Valley Electric Facts • Incorporated 1965 • 16,800 member owners • 24,132 services (meters) • Serve 50,000 people (approximately) • Service area covers 6,500 sq. miles • 2,454 miles of distribution line • 287 miles of transmission line Valley Electric Association, Inc. Valley Electric Facts • 80 employees • $180 million in plant • $54 million in annual revenue • Avg. retail rate $0.10 kWh • Residential rate $0.1027 kWh Valley Electric Association, Inc.

Service Area (6,500 sq. miles) Service Territory • Clark County • Nye County • Esmeralda County – Portions • Mineral County • Mono County, CA • Inyo County, CA Nevada Electric Cooperatives 54.5% landmass 5% population Valley Electric Association, Inc. The Co-op Network

More than 864 electric distribution cooperatives and 66 G&T cooperatives serve 40 million people in 47 states Valley Electric Association, Inc.

Solar Thermal Water Heating 1. The low hanging fruit in renewable energy 2. Water heating is the third largest expense in most households 3. Hawaii mandates installation in most new homes 4. Colorado and New York state leaders in installations Valley Electric Association, Inc.

VEA Position on Renewable Energy • Internal Policy Statement: – Encourage development of renewable energy in service area – Market VEA transmission system capacity – Evaluate renewable energy proposals for implementation into portfolio (case by case feasibility study) • Implemented Net Metering Program (exceeds state) • Implemented LGIP – SGIP • Implemented OATT • Partner w/members to assist roof top generation & REC’s Valley Electric Association, Inc.

VEA Launches Largest Domestic Solar Water Heating Program in the U.S.

September 1, 2009 Valley Electric Association, Inc. Domestic Solar Water Heating Program

• 2006 – initiated 18 month pilot program 1. Solar - 85% annual water heating needs 2. Significant utility economic benefits 3. Established equipment manufacturer 4. Trained competent installers 5. Pilot members loved the units • Member survey indicated 35% market potential Valley Electric Association, Inc. Domestic Solar Water Heating Program

• Business plan to install 5,000 units (6% portfolio) • Sell the units at cost (50% of standard cost) • $3,800 to $4,900 (includes installation) • Members are eligible for federal tax credits • Provide 0% financing up to 14 years • Annual energy savings $253 to $546 • Save ratepayers $34 million over the next 20 years • Eliminates 3,082 lbs. of CO2 annually (per unit) Valley Electric Association, Inc. Domestic Solar Water Heating Program

• Partnered Rheem Manufacturing Co. • Great Basin Community College - training • Creation of 40-60 jobs locally (11 ramping up) • Add $5 million in payroll • Add $1 million in state and local taxes • Nevada State Manufactured Housing • Nevada State Contractors Board Valley Electric Association, Inc. Domestic Solar Water Heating Program Valley Electric Association, Inc.

Smart Grid Capabilities Valley Electric Association, Inc.

Smart Grid • Thought: From the individual meter all the way back to the power plant, everything is known and everything is controlled. But, from the meter into the house or business, electricity is still being delivered the same way it was in 1958 – little is known to our consumers and nothing is in their control. We are about to change that! Valley Electric Association, Inc.

VEA’s definition of Smart Grid: Operation of the using components and systems that have the capability, through two-way communication, to monitor and control the flow of electricity on the transmission and distribution system. In addition, utilization of the system by consumers using the same digital technology to monitor and control their electrical energy needs. Valley Electric Association, Inc.

Smart Grid Technology

• VEA has the most technologically advanced comprehensive operating system of any utility in the state and region. • Installed TWACS System on 100% meters ten years ago Valley Electric Association, Inc. Systems and Existing Interfaces CIS – Contains all customer usage, billing info GIS – Geographic Information System Map of VEA’s electric system TWACS – VEA AMI System - 2-way automated communication meter system OMS – Outage Management System to graphically manage outages DMS – Distribution Management System to graphically manage the distribution system SCADA – Supervisory Control and Data Acquisition System monitors and controls electric system Valley Electric Association, Inc.

Google Technology Valley Electric Association, Inc.

Google PowerMeter • Google PowerMeter is a free electricity usage monitoring tool that provides you with information on how much energy your home is consuming. Google PowerMeter receives information from utility smart meters and in-home energy management devices and visualizes this information for you on iGoogle (your personalized Google homepage). And, Google PowerMeter is free. Valley Electric Association, Inc. Valley Electric Association, Inc.

Google PowerMeter

• Google Deploys PowerMeter API (4/2010) • While the cost to VEA is roughly 18 cents per meter per month, we believe the savings to our members will far exceed the cost. • VEA will be the second cooperative in the U.S. to offer this program to our members. The free service will be offered beginning in the 3rd quarter of 2010. Valley Electric Association, Inc.

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