Food Industry Growth & Expansion Opportunities in Nevada

NV Energy Economic DevelopmentOur dedicated Business Development team strategically works to facilitate business site location, relocation and expansion in Nevada.

• Nevada Food & Beverage Companies • Education Programs• Labor• Industry Breakdown• Logistics Map• Regional Resources• Rail Service • Nevada Business Advantages• Potential Sites • Rate Comparisons • Renewable Resources & Options

Nevada Food & Beverage Companies

Dairy Farmers of America

Education

University of Nevada, Reno - Agriculture, Biotechnology & Natural Resources: • 14 undergraduate degrees• 8 graduate level degrees• 5 PHD degrees

University of Nevada, Las Vegas• 2 undergraduate degrees• 2 graduate degrees• 1 concentration

Culinary Academy of Las Vegas• Train approximately 1,600 students per year in 12 different workforce classifications• Have trained more than 40,000 people since 1993

Great Basin College• 3 undergraduate degrees

College of Southern Nevada• 2 associate degrees• 2 certificate of achievement

The following post-secondary education degrees and certificates support the food and agriculture sector.

Nevada LaborNAICS Description 2018 Jobs 2019 Jobs

Jobs YOY 2018-2019 2020 Jobs

Jobs YOY 2019-2020

Average Earnings Per Job

Current Supplements

Current Wages, Salaries, & Proprietor Earnings

2019 Location Quotient

Food Manufacturing311Food Manufacturing 6,696 6,828 7,047 $52,723 $10,360 $42,363 0.45312Beverage and Other Product Manufacturing 817 911 988 $66,187 $16,234 $49,953 0.35

7,513 7,739 3.01% 8,035 3.82% $54,308 $11,051 $43,257

NAICS Description 2018 Jobs 2019 JobsJobs YOY 2018-2019 2020 Jobs

Jobs YOY 2019-2020

Average Earnings Per Job

Current Supplements

Current Wages, Salaries, & Proprietor Earnings

2019 Location Quotient

Food Manufacturing311Food Manufacturing 3,975 4,059 4,182 $47,587 $9,216 $38,371 0.37312Beverage and Other Product Manufacturing 542 626 683 $70,046 $17,201 $52,846 0.33

4,517 4,685 3.75% 4,865 3.84% $50,588 $10,283 $40,305

NAICS Description 2018 Jobs 2019 Jobs Jobs YOY 2018-2019 2020 Jobs Jobs YOY

2019-2020

Average Earnings Per Job

Current Supplements

Current Wages, Salaries & Proprietor Earnings

2019 Location Quotient

Food Manufacturing311Food Manufacturing 2,190 2,209 2,286 $59,958 $12,046 $47,912 0.80312Beverage and Other Product Manufacturing 184 191 201 $61,072 $14,994 $46,078 0.40

2,374 2,400 1.10% 2,487 3.63% $60,046 $12,280 $47,766

Northern Nevada, Washoe, Lyon and Storey Counties

Nevada, Clark County

Nevada

Source: EMSI, NV DETR and BLS

Nevada Industry BreakdownNAICS• 311 Food Manufacturing• 312 Beverage and Other Product

Manufacturing

7,513

4,517

2,374

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Nevada Clark County, NV Northern Nevada

2018-Food & Beverage Jobs

8,035

4,865

2,487

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Nevada Clark County,NV Northern Nevada

2020-Food & Beverage Jobs

Sources: EMSI, NV DETR and BLS

YearNumber of

Establishments YOY2018 689 4.55%2017 659 2.33%2016 644 5.06%2015 613 5.51%2014 581 8.40%

5 year change 28.54%

*All counties are represented in Nevada Jobs. Northern Nevada includes Washoe, Lyon & Storey Counties.

Logistics Map

• One day truck service to seven states and over 56 million people.

• Two day truck service to 11 states and over 64 million people.

Food & Agriculture ResourcesThe major metropolitan areas in Nevada are Reno & Las Vegas, which are within:

5 hours from:• 400+ Agriculture commodities/ingredients• 80,500 farms covering 31.4 million acres• Region = the world’s 5th largest supplier of food

& agriculture

10 hours from:• 450+ Agriculture commodities/ingredients• 133,200 farms covering 58.5 million acres

15 hours from:• 450+ Agriculture commodities/ingredients• 212,993 farms covering 111 million acres

Legend

Rail Service

Northern Nevada Service Providers• Burlington Northern Santa Fe

• Shared access rail rights• Union Pacific

Southern Nevada Service Provider• Union Pacific

Source: www.seekingalpha.com

Nevada Business Advantages

• Nevada has a low and business friendly tax climate• Low cost renewable options• Proximity to major ports• Low cost of operation• Tax Abatements

• Sales and Use Tax Abatement - Sales and use tax abatement on qualified capital equipment purchases, with reductions in the rate to as low as 2%.

• Modified Business Tax Abatement - An abatement of 50 percent of the 1.475% rate on quarterly wages exceeding $50,000.

• Personal Property Tax Abatement - An abatement on personal property not to exceed 50% over a maximum of 10 years.

• Real Property Tax Abatement for Recycling - Up to 50% abatement for up to 10 years on real and personal property for qualified recycling businesses.

Nevada Tax Advantages:

No personal state income tax No franchise tax No special intangible taxNo corporate income tax No inventory tax No inheritance taxNo estate and/or gift tax No unitary tax

Potential Locations

Northern Nevada: Reno properties9575 North Virginia Street9560 North Virginia Street9565 North Virginia Street

Southern Nevada6350 Howdy Wells Avenue5265 North Sloan Lane6401 Howdy Wells Avenue

Echo Avenue and Mt LimboLear Boulevard9555 North Virginia Street

6501 Howdy Wells Avenue6601 Howdy Wells Avenue

Nevada has numerous sites throughout the state supported by reliable NV Energy infrastructure for your electric loads.

9585 North Virginia Street9595 North Virginia Street

Potential Locations – Industrial ParksNorthern NevadaTahoe Reno Industrial CenterNorthern Nevada has new premium locations that are in development. NV Energy will closely monitor these sites and will provide periodic updates.

Southern NevadaCity View Industrial ParkVegas Industrial ParkGolden Triangle 29Golden Triangle 24Golden Triangle 27Miner's Mesa Industrial Park

Rate Comparisons • Thru December 2019,

Nevada's average retail price for commercial customers was 16.4% lower than Mountain states, 52.7% lower than California, and 25.1% lower than the US.

9.55 10.39 10.12

7.68

10.49

7.989.94

8.389.70

14.54

16.86

8.88 8.7610.66

0.002.004.006.008.00

10.0012.0014.0016.0018.00

cent

s per

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2019 Commercial Rates

• Thru December 2019, Nevada's average retail price for industrial customers was 3.2% lower than Mountain states, 55% lower than California, and 10.8% lower than the US.

Source: US Energy Information Administration

6.29 6.327.23

6.105.35

6.095.39 5.95

6.69

9.95

13.52

6.224.86

6.83

0

2

4

6

8

10

12

14

16

Cen

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2019 Industrial Rates

Low Cost Renewable OptionsNV Energy is committed to low cost renewable solutions for our customers. In June, 2020 NV Energy filed a historic $120 million reduction for southern Nevada customers, which if approved will go into effect on January 1, 2021. That is in addition to a statewide decrease in customer rates of $105.7 million effective April 1, 2020 and another $30.6 million if approved by the Public Utilities Commission of Nevada effective on October 1, 2020. In addition to our commitment to low costs, NV Energy is also working with our customers to create new tariffs like the Large Customer Market Price Energy tariff approved in April, 2020 to support our ever changing customer needs.

Large General Service-3 Transmission Tariff (Standard South)• Current open rate class for customers with a minimum demand of 1000kW serviced at

60kV or above. No contract or agreement required. Renewable mix at 21%, growth to 50% by 2030.

General Service-3 Transmission Tariff (Standard North)• Current open rate class for customers with a minimum demand of 1000kW serviced at

60kV or above. No contract or agreement required. Renewable mix at 21%, growth to 50% by 2030.

Renewable Resources• Customers are currently

benefitting from:• 15 Geothermal projects• 27 Solar projects• 4 Biomass/ methane/

waste heat• 5 Small hydro & Hoover

Dam• 1 Wind project

• 1,591 MWs of new solar with 690 MW of Battery Storage under construction, in development or pending regulatory approval

Contact InformationContact:Jeff Brigger – Director, Business Developmentjbrigger@nvenergy.com | Cell: 775-354-8810

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Resources:NV Energy Economic Development websiteNevada Site LocatorGovernor's Office of Economic DevelopmentNevada Department of AgricultureU.S. Department of Agriculture