NV Energy Signs Agreement with Department of Energy for Smart Grid Funding

NV Energy, Inc. (NYSE: NVE) announced today that it has signed a definitive grant agreement with the Department of Energy (DOE), which will provide $138 million in American Recovery and Reinvestment Act funding for its $301 million Advanced Service Delivery (ASD) project. The ASD project will provide NV Energy with the Smart Grid infrastructure necessary to reduce operating costs and provide new options for customers to help manage their energy usage.

Michael Yackira, President and Chief Executive Officer for NV Energy, commented on the signed contract, "We are pleased to be the first investor-owned utility to reach a final agreement with the DOE. This grant, along with our own investment in this project, will benefit virtually the entire state of Nevada. The energy landscape is transforming across the country, and I am proud to say NV Energy is leading the way. Our ASD project will change the way we do business, providing our customers with more information that will enable them to manage their energy use more effectively and efficiently.”

In August 2009, NV Energy applied for federal Smart Grid Investment Grant funding made available through the American Recovery and Reinvestment Act. The Department of Energy (DOE) was appropriated $3.4 billion for the Smart Grid Investment Grant program, making available up to 50 percent or $200 million, whichever is less, of the total project cost per utility.

The company’s grant application included a letter of support from the Public Utilities Commission of Nevada (PUCN). The PUCN will be evaluating the ASD project as part of NV Energy’s integrated resource planning process in the coming months, and the company will be making other filings with the PUCN to facilitate the studies that are part of the project.

With a definitive DOE grant agreement in place, NV Energy will finalize its planning for the program, with the ultimate goal of completing installation of advanced service delivery infrastructure statewide in late 2012.

Headquartered in Las Vegas, NV Energy, Inc. is a holding company with principal subsidiaries Nevada Power Company and Sierra Pacific Power Company doing business as NV Energy. Serving a combined 54,500-square-mile service territory, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada and nearly 40 million tourists annually.

These statements contain forward-looking statements regarding the future performance of NV Energy, Inc., within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, risks related to regulatory approval, permitting, construction and risks related to commercial contracts associated with the project. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of NV Energy, are contained in the Annual Reports of NV Energy, Inc. on Form 10-K for the year ended December 31, 2009 filed with the SEC. NV Energy undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.