Program Overview. Free intelligent thermostat and gateway device ($150 - $200 value)

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1 Program Overview What is mpowered? mpowered is an energy conservation program that offers customers advanced technologies and tools to help lower their bills through automated and more strategic utilization of electricity. mpowered also allows NV Energy to initiate Energy Events during periods of peak demand in the summer. Why should I participate in mpowered? mpowered is a home energy management program offered by NV Energy to help customers save money and manage energy. mpowered includes the following equipment and services: Free intelligent thermostat and gateway device ($150 - $200 value) Free installation ($100 - $150 value) Energy optimization service, monthly subscription fees waived with current offer ($10.99/month value) Anywhere access to thermostat programming and HVAC system reporting via Internet or mobile portal Year-round energy savings The mpowered thermostat and energy optimization service works with your Heating, Ventilation, and Air Conditioning (HVAC) system to reduce energy use automatically. The system typically saves 10-15% on your cooling energy. A number of customers have saved up to 20% on cooling energy. You can save even more and receive rebate credits by participating in Energy Events. What is the monetary value of 10-15% of cooling energy savings for a typical single family home? Are there savings during the heating season? For an average home, 10-15% of cooling energy savings should be in the range of $90 to $140 dollars each year. Every home is different and these figures will vary from home to home. Some will save more on cooling and some less. Additionally, during the heating months, customers with electric heat pumps will save more on their electricity bills, and customers with natural gas heating will save more on their gas bills.

2 What is required to participate? Eligible participants must have central air-conditioning, maintain always-on broadband Internet service, and have an open Ethernet port. NV Energy will not provide broadband Internet service for customers as part of the mpowered Program. Currently, this program is only available to residents of single-family homes in Southern Nevada. Customers must also agree to the program terms and conditions. The program is completely voluntary; however, if a customer decides to leave the program within three years time, an early termination fee may apply if equipment is not returned in satisfactory working condition. See Participation Agreement for more information. Who will install the equipment? The mpowered thermostat will be installed by NV Energy qualified technicians. You will receive operating instructions and training materials for the thermostat and energy optimization service at the time of installation. What is an mpowered intelligent thermostat? Equipment & Service It s more than a programmable thermostat, more than a custom temperature schedule: the mpowered thermostat is web-enabled and communicates with an energy optimization service that turns your air conditioner and heater into a smart system. How do I adjust my temperature? You can change your temperature using the up and down arrows on your thermostat, going online and using the temperature controls through the mpowered web portal, or using your smartphone. How do I teach the system my comfort preferences? Every time you make a change to your temperature settings - at the thermostat or online - the service learns your preferences and will adjust the energy optimization set point changes accordingly to make sure you stay comfortable while saving energy. How does the energy optimization service work? Your thermostat connects to the service through a gateway device via the Internet and it analyzes how quickly your home heats up and cools down. The service calculates how much energy it takes for your heating and cooling system to change the temperature in your home under different conditions.

3 Using information from your thermostat along with weather conditions, your temperature preferences, and any temperature changes you make manually, the service makes slight adjustments to your thermostat settings throughout the day. These adjustments help you heat and cool your home in the most energy efficient way automatically. For example, if your temperature set point is 80 degrees Fahrenheit, it may be substantially more efficient on certain days to run your air conditioner longer down to 78 and then let the temperature float up to 82 degrees. Most people would never notice this. However, if you notice any such adjustments, just walk over to the thermostat and let it know by interacting with it. How do I adjust the energy optimization settings? As you interact with the thermostat each day or change your settings and update your schedule, the service will learn and adjust to your preferences automatically. Additional customization of the energy optimization service is possible by contacting Customer Care. What is a gateway? A gateway provides the connection between the thermostat and energy optimization service via the Internet. Note that the gateway must be connected to an always-on Internet connection in order for the service to run with full functionality. What happens if my Internet connection is lost? If your Internet connection is lost and power is maintained, the existing temperature programs will continue to run just like a typical programmable thermostat without optimization. You could still adjust the temperature locally on the thermostat(s) itself, but until connectivity is reestablished, you will not be able make adjustments through the online web portal and would not benefit from the optimization service. Is there a subscription fee for the energy optimization service? Typically, there is a monthly subscription fee for the service. Under the currently approved program, NV Energy is able to cover this fee on behalf of the customer for a limited timeframe and a limited number of customers that enroll by 12/31/13. Basic monthly subscription fees might apply in the future for new customers depending upon program updates and regulatory approvals. Also, a premium subscription may be available in the future for a monthly fee. Premium subscriptions could include enhanced services such as HVAC diagnostics that would notify you of potential system problems or additional convenience tools available on mobile devices.

4 Energy Events What is an Energy Event? An Energy Event is a period of time (typically 2-3 hours) when demand for electricity in NV Energy s service territory is high. How do Energy Events work? Prices in the wholesale energy market change from hour to hour and day to day based on electricity demand and other factors. When electricity demand and prices are high, NV Energy may implement an Energy Event. mpowered equipment and services automatically help customers shift energy consumption outside of the peak timeframe of the Energy Event in the most optimized fashion with the goal of minimum comfort impact. Most customers do not even notice that an Energy Event has happened. When will Energy Events happen? These events do not have a fixed start date, time, or duration and can vary based on conditions. However, the normal window for an event is weekdays between 1 p.m. and 7 p.m. during the Summer Months (June 1 to September 30). Typically, an event will last 2-3 hours. How do I participate in Energy Events? It's easy and automatic! Instructions are sent to your thermostat in order to shift energy consumption outside of the timeframe of the Energy Event. Depending upon your home characteristics, the instructions may lower the temperature or pre-cool a bit before the event, and then let the temperature float up during the event (no more than 4 degrees Fahrenheit above your set point). At the end of the event, your air conditioner will automatically return to the previously programmed setting.

5 How will I know when Energy Events are happening? Hopefully, you won t ever notice; but event information will be posted on the online portal and you can always verify with a customer service representative whether or not an event is taking place. You don't have to do anything to participate and save. The energy optimization service will work to pre-cool your home before the event so the temperature should only rise slightly from your base set point. The notification that will appear on the mpowered portal when an event is underway will look like this: What happens if I don t want to participate in an event? Whenever an Energy Event occurs, a customer may choose to not participate in the energy event by simply overriding the event by adjusting the temperature at their thermostat or through the online portal. But remember, overriding a event may reduce the benefits of participation. Are there any financial incentives for participating in Energy Events? By far, the largest mpowered incentives are the equipment and service incentives designed to help you achieve significant energy and cost savings throughout the year. And then, on top of that, there are Energy Event incentives to reward customers for shifting their energy consumption out of the peak hours. An mpowered Participation Rebate will be paid out as a bill credit at the end of the year. The annual participation credit will vary based upon participation behavior, weather, and energy markets.

6 How are Energy Event Participation Credits calculated? While you re participating in an event, you can earn participation rebates for energy saved. The participation credit you receive is calculated based on the amount of energy (kwh) you saved during the events times the peak wholesale prices ($/kwh) during the events. Rebates are calculated for each hour of event participation and applied as a bill credit at the end of the year. That means every Energy Event is your chance to receive a rebate. Here s the formula we use: The participation rebate is based upon recently approved tariff, Schedule OLM-AS. For complete details on the mpowered Rebate Plan and Tariff Rider OLM-AS, visit nvenergy.com/company/rates/snv/schedules

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