California

1

Sierra Pacific Power Company

• California
• Low Income Assistance
• Programs

LIOB Meeting June 7, 2006
2
Company Overview

• Subsidiary of Sierra Pacific Resources.
• 353,000 electric customers in Nevada and
  California.
• 45,000 California electric customers, primarily
  in Lake Tahoe area.
• Approximately 85 of California customers, or
  39,000 are residential, with 50 vacation or
  second-home owners.

3
California Alternate Rates for Energy (CARE)
Program

• 20 discount to qualifying customers.
• Eligibility is based on 175 of the Federal
  Poverty Income (FPI) guidelines.
• Sierra contracts with the Department of Community
  Services and Development (CSD) to verify income
  eligibility and recertification.
• Self-certification implemented in November 2005.

4
CARE Participation

• Sierra has 1,650 customers on the CARE rate or
  72 participation.
• Eligible customers estimated at 2,300.
• Participation has increased by 17 since 2004 due
  to
• Self-certification implementation.
• HEAP payment recipients placed on CARE.
• Data sharing with Southwest Gas.

5
Low Income Energy Efficiency (LIEE) Program

• Customers qualify at 175 of FPI.
• Weatherization including energy education,
  lighting and appliance replacement.
• Contracts with Richard Heath and Associates and
  Project Go.
• Senior citizen centers are targeted.
• 91 homes weatherized in 2005.

6
Current and Proposed Budgets

• CARE LIEE Total
• Authorized 250,420 100,000
  350,420
• (D.05-07-014)
• Proposed
• 2007 395,000 110,000 505,000
• 2008 411,000 110,000 521,000
• CARE increase is due to higher customers and
  resulting subsidy.

7
Sierras Concerns

• Self-certification will increase future CARE
  costs.
• Different income guidelines for Southwest Gas
  will end CARE data sharing.
• Awaiting Energy Division Needs Assessment Study,
  which should determine lower number of
  CARE-eligible customers.
• Limited staff to administer and report on
  programs.
• Unique, tourist-oriented service area limits
  low-income outreach.