Valley Electric Association, Inc. Media Kit

Company Overview Valley Electric Association, Inc. (VEA) is a member-owned, nonprofit electric utility headquartered in Pahrump, Nevada. VEA was founded in 1965 as a result of a merger between the Amargosa Valley Cooperative and White Mountain Electric Cooperative. Prior to the merger, the Amargosa Valley Cooperative had acquired the Amargosa Power Company, a small, investor-owned electric utility, and the Beatty Utility Company, a small municipal electric system. Thus, VEA’s predecessors have been providing electric service in local communities for more than 70 years, dating back to 1940. VEA’s service territory now includes more than 6,800 square miles in Nevada and California, located mainly along the NevadaCalifornia state border, with the majority in Nevada. VEA’s residential members are the co-op’s largest single consumer group. In the south, the service area starts in Sandy Valley, southwest of Las Vegas. It extends to the north for more than 250 miles to Fish Lake Valley and beyond (roughly halfway to Reno). VEA now provides service to more than 45,000 people. More recently, VEA’s member base has grown to include high-profile federal government facilities in Nevada — the Nevada National Security Site and Creech Air Force Base. Planning for increased load demand and accommodating member growth are among the challenges VEA faces as it looks to the future. VEA does not generate the electrical energy it supplies to members and buys most of its power on the open market. The company strives to find the lowest-cost wholesale power available to minimize rate increases to VEA members. VEA is the first utility outside the state of California to participate in the California Independent System Operator Corporation (California ISO) balancing authority. The California ISO manages the flow of electricity across the high-voltage, long-distance power lines that represent approximately 80 percent of California’s power grid. The California ISO operates a wholesale power system that balances the need for higher transmission reliability with the need for lower costs. VEA’s participation in the California ISO opens up significant market and economic benefits, allowing both entities to share efficiencies and serve as catalysts for cost-effective renewable resources.

Key Facts Number of Members More than 17,000

Number of Meters More than 22,000

Service Territory

More than 6,800 square miles, located primarily in Southern Nevada

Number of Full-Time Employees 106

Administrative Offices

800 E. Highway 372 Pahrump, NV 89048 775-727-5312 Toll-free within Nevada: 800-742-3330

Social Media

Twitter: @Valley_Electric Facebook: www.facebook.com/ValleyElectric YouTube: www.youtube.com/VEACoop

Website

www.vea.coop

To learn more about Valley Electric Association, Inc., contact MassMedia | 3333 E. Serene Ave., Suite 100 | Henderson, NV 89074 | 702.433.4331 | massmediacc.com

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Fact Sheet Milestones 1963 In order to meet their electric utility needs, farmers in the Pahrump and Amargosa valleys organize and form the Amargosa Valley Cooperative. 1963 The Rural Electrification Administration approves a $3.94 million construction loan to the Amargosa Valley Cooperative to build a 138-kilovolt transmission line. 1963

The 138-kilovolt transmission line is completed.

1964 The Amargosa Valley Cooperative, Amargosa Power Company, Beatty Utility Company and White Mountain Electric Cooperative consolidate their efforts through the use of the Amargosa Valley Cooperative’s management, office, engineering resources and other services to reduce their costs. 1965

The electric cooperative is incorporated as Valley Electric Association, Inc. (VEA).

1981

VEA moves its offices from Las Vegas to Pahrump, a central location within its service territory.

1997

Growth requires a new, larger headquarters building to be constructed in Pahrump.

1995 The 138-kilovolt transmission line serves the co-op well until member and load growth in the service area compels VEA to build a new 230-kilovolt transmission line. 1995

Construction of the new 230-kilovolt transmission line is completed.

2006 Pilot programs begin for the Marathon High-Efficiency Water Heating Program and Domestic Solar Water Heating Program. 2007

VEA officially launches the Marathon High-Efficiency Water Heating Program.

2008  The VEA Charitable Foundation, a separate nonprofit organization that benefits the communities VEA serves, is established. 2009

VEA officially launches its Domestic Solar Water Heating Program.

2009

VEA implements Operation Round Up, a cooperative approach to supporting projects with community-wide benefits.

2012 Valley Electric Transmission Association, LLC (VETA) is formed to create a financial structure that brings the lowest financing cost to VEA members. This allows VEA to receive transmission-related debt capital that requires less revenue earned from members to satisfy bank covenants. VEA is unique in the rural cooperative industry, in that roughly half of its assets are associated with transmission. 2012 VEA and VETA complete the largest capital expansion in VEA’s history, the Northwest Transmission Loop Project. This project includes significant work encompassing five substations, 80 miles of transmission line and 80 miles of 48-strand fiber optic communication cable. 2012

The U.S. Air Force awards VEA a $4.6 million contract to construct new electric and communications facilities.

2012

VEA is awarded a five-year, $61.6 million contract to provide electric services for the Nevada National Security Site.

2012

VEA is awarded a 50-year, $36.6 million contract to provide electric distribution services for Creech Air Force Base.

2012 VEA’s Dispatch Operations Center makes the conversion to full-time, 24/7 status and receives certification from both the North American Electric Reliability Corporation and the Western Electricity Coordinating Council. 2012 VEA’s Domestic Solar Water Heating Program receives the 2012 Community Service Award for Energy Efficiency from the National Rural Electric Cooperative Association. 2013 VEA becomes the first out-of-state utility to join the California Independent System Operator Corporation balancing authority, opening the door to a variety of new opportunities in the renewable energy market. 2014  VEA breaks ground on the large-scale expansion of its Pahrump-based campus. The project is designed to provide numerous benefits to VEA and its members, including a new community conference center, an enhanced customer service center, and a new building for the cooperative’s operations, dispatch and engineering departments. To learn more about Valley Electric Association, Inc., contact MassMedia | 3333 E. Serene Ave., Suite 100 | Henderson, NV 89074 | 702.433.4331 | massmediacc.com

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The Cooperative Business Model Today, there are more than 900 electric cooperatives spanning 47 states and serving more than 42 million members. Cooperative members are not simply ratepayers; they are owners who have a say in how their utility is run. The Seven Cooperative Principles play a valuable role in guiding the actions of VEA. By adhering to the following principles, VEA provides its members with a wide variety of unique benefits, including democratic control of the cooperative, community assistance programs, and opportunities for education and training.

The Seven Cooperative Principles • Voluntary and Open Membership • Democratic Member Control • Members’ Economic Participation • Autonomy and Independence • Education, Training and Information • Cooperation Among Cooperatives • Concern for Community To learn more about the cooperative business model, visit VEA’s website at www.vea.coop.

Community Involvement From its humble beginnings as a rural farm utility provider, VEA has grown in recent decades to become a responsive, responsible and progressive energy provider to strategic government facilities, homes, businesses and industries throughout a vast service area. More than simply providing for the energy needs of its members, VEA is woven into the fabric of the communities it serves, with assistance programs such as the Home Utility Gift and Lighthouse Assistance programs; safety demonstrations to provide information about utility safety; and both full-time and part-time academic scholarships. VEA’s community integration also includes the Ambassador Program, a grassroots organization designed to educate members about the association and the electric utility industry as a whole. VEA Ambassadors work directly with the staff on policies, procedures and programs. They also enlist member support in shaping policy and learn how legislation affects the co-op and its members. VEA also makes donations as an association. The VEA Charitable Foundation is a separate nonprofit organization that benefits the communities VEA serves, administering funds that come from the Operation Round Up program and providing financial support to worthy community organizations and projects.

To learn more about Valley Electric Association, Inc., contact MassMedia | 3333 E. Serene Ave., Suite 100 | Henderson, NV 89074 | 702.433.4331 | massmediacc.com

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Service Area

Map created by the VEA Mapping Department

To learn more about Valley Electric Association, Inc., contact MassMedia | 3333 E. Serene Ave., Suite 100 | Henderson, NV 89074 | 702.433.4331 | massmediacc.com

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Leadership Team Bios

Thomas Husted Chief Executive Officer Since November 2006, Thomas Husted has served as the chief executive officer of Valley Electric Association, Inc. (VEA). Husted has led the rural utility business through remarkable growth and progress. He has more than 30 years of experience in the utility industry across the Western U.S., including more than 20 years as a CEO. Husted has initiated change and fostered development in the areas of management, power systems development, operations, marketing and communications. In 2005, he led a utility to develop a community communications system by opening up the utility’s network and creating the largest Wi-Fi hotspot in the U.S., covering more than 1,500 square miles. In 2013, he was named the Small Utility CEO of the Year by Electric Light & Power, a nationwide energy trade publication. Husted has been actively involved in various utility and consumer power management organizations during his career. He previously served as a member of the board of directors for a generation and transmission company in Kansas, and he presently sits on the board of directors for a power generation company in Arizona. He has had multiple gubernatorial appointments to statewide task forces dealing with renewable energy and transmission issues, and he is a member of the Nevada New Energy Industry Task Force.

Rick Eckert Executive Chief Operating Officer Rick Eckert is a financial professional and administrator with more than 30 years of experience in the utility industry. Much of his career has been spent in financial planning and business development. As the executive chief operating officer, Eckert manages the daily activity of the utility while developing VEA’s strategies for growth. He is part of a team that has restructured VEA financially with the creation of Valley Electric Transmission Association, LLC (VETA) and helped VEA gain acceptance as a participating transmission owner in the California Independent System Operator Corporation. Prior to joining VEA, Eckert began his career with natural gas utilities before spending more than 20 years at Alaska-based Homer Electric Association, Inc., where he held several positions, including departmental management positions for finance, regulatory affairs and business development. He played a key role in the financial restructure of that utility. He also led the initial development of the Nikiski Co-Generation Project and achieved regulatory approval of its contractual agreements. Eckert served as a gubernatorial appointee to the Alaska Energy Policy Task Force and was the Kenai Peninsula mayoral appointee to the Tri Borough Energy Policy Task Force. His community service has included numerous positions for various commissions, committees and hospital boards.

To learn more about Valley Electric Association, Inc., contact MassMedia | 3333 E. Serene Ave., Suite 100 | Henderson, NV 89074 | 702.433.4331 | massmediacc.com

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Leadership Team Bios

Curt Ledford General Counsel, In-House Since 2007, Curt Ledford has provided legal representation to VEA on a wide array of legal matters, including utility law, cooperative law, administrative law, corporate law, transactional matters, employment law, grid security and reliability, and general regulatory law affecting cooperative utilities. Ledford has assisted VEA in completing almost 80 miles of transmission, transitioning the VEA system into the California Independent System Operator Corporation and registering VEA with the Western Electricity Coordinating Counsel as a transmission operator. He also assists in the creation and review of various bills before the Nevada Legislature. Prior to providing in-house counsel to VEA, Ledford served as an associate at Jones Vargas in Las Vegas. During his time with the firm, Ledford represented many clients, including utilities, primarily in financing and real estate transactional matters. Ledford received his Juris Doctor from the University of Arizona in 2004 and a bachelor’s degree in finance from the University of Arizona in 2001. He was admitted to practice in Nevada in 2004. Ledford is a member of the Clark County Bar Association and the Electric Cooperative Bar Association. He has been an executive committee member of the Energy, Utilities and Communication Law section of the State Bar of Nevada since its formation in 2009.

Chris Brooks Executive Vice President, Energy Services As a well-established leader in Nevada’s renewable energy industry, Chris Brooks is tasked with managing VEA’s distributed generation programs and overseeing specialized government contracting related to renewable energy services. He also manages VEA’s legislative affairs, marketing and member services programs. Throughout his career, Brooks has demonstrated a steadfast commitment to advancing Nevada’s renewable energy industry. Prior to joining VEA, Brooks served as the director of Bombard Renewable Energy in Las Vegas for 10 years, where he was responsible for the development of approximately 700 renewable energy projects in Nevada. He previously founded Las Vegas Solar Electric, a company that was responsible for developing Nevada’s first grid-interactive photovoltaic systems. Brooks is also active in shaping the state’s renewable energy policies. He has served as an appointed solar representative on the Nevada Renewable Energy and Energy Conservation Task Force, and he was also appointed by U.S. Sen. Harry Reid to serve as a member of the Blue Ribbon Panel for Nevada’s Clean Energy Future in 2008.

To learn more about Valley Electric Association, Inc., contact MassMedia | 3333 E. Serene Ave., Suite 100 | Henderson, NV 89074 | 702.433.4331 | massmediacc.com

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Leadership Team Bios

Chris Tomchuk Executive Vice President, Operations and Engineering Chris Tomchuk has worked in the electric utility industry for more than 30 years, and he serves as executive vice president of operations and engineering for VEA. His previous tenure includes work as project manager for NV Energy and early career work as an electrical engineer for the U.S. Bureau of Reclamation. His career covers the spectrum from field operations to strategic planning, including technical and managerial responsibilities, and crisis communication skills. Tomchuk has set transmission policy and direction for a multibillion-dollar corporation and is responsible for managing the sale of $132 million in corporate assets. Tomchuk’s customer-driven focus is at the forefront of his efforts for VEA. In carrying out his work, he has routinely appeared before regulatory commissions such as the Public Utilities Commission of Nevada, the California Public Utilities Commission, the Federal Energy Regulatory Commission, the Securities and Exchange Commission and the North American Electric Reliability Corporation. Tomchuk actively participates in industry groups such as the Edison Electric Institute and WestConnect. He is a registered electrical engineer in Nevada and California and a member of the Institute of Electrical and Electronics Engineers. In the community, he serves on the board of elders at his local church. He is also a past board member for KNIS Radio.

To learn more about Valley Electric Association, Inc., contact MassMedia | 3333 E. Serene Ave., Suite 100 | Henderson, NV 89074 | 702.433.4331 | massmediacc.com

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