RENO, Nev., Jan. 24 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) today announced that its utilities, Nevada Power Company and
Sierra Pacific Power Company, have reached an agreement with El Paso
Corporation and its subsidiaries to settle disputes over terminated power
contracts stemming from the Western Energy Crisis.
    Under terms of the settlement, Nevada Power Company will pay El Paso
Marketing L.P. $19 million in settlement of certain claims and counterclaims
between the two companies and their subsidiaries.  These claims included
payment for power that was delivered to Nevada Power in 2002 but not yet paid
for, as well as assertions of payments due for terminated future contracts and
claims seeking adjustments in power contract prices under section 206 of the
Federal Power Act.  The amount due for the power delivered to Nevada Power by
El Paso in 2002 totaled $19.8 million.
    "This settlement not only averts continuing and costly litigation, it also
is the last outstanding legal case involving power contracts under which
claims have been made against Sierra Pacific's utilities as the result of the
Western Energy Crisis of 2000-2001," said Walter Higgins, chairman and chief
executive officer of Sierra Pacific Resources.  "With this issue behind us, we
can now better focus on the primary objectives of efficiently and reliably
serving the growing need for power in our region while continuing to improve
our company's financial strength."

    Headquartered in Nevada, Sierra Pacific Resources is a holding company
whose principal subsidiaries are Nevada Power Company, the electric utility
for most of southern Nevada, and Sierra Pacific Power Company, the electric
utility for most of northern Nevada and the Lake Tahoe area of California.
Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks
area of northern Nevada.  Other subsidiaries include the Tuscarora Gas
Pipeline Company, which owns a 50 percent interest in an interstate natural
gas transmission partnership.

    Forward-Looking Statements:  The statements in this press release 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 the parties' ability to finalize
a definitive settlement agreement by February 7, 2006.  Additional cautionary
statements regarding other risk factors that could have an effect on the
future performance of the Utilities are contained in their Quarterly Reports
on Form 10-Q for the quarter ended September 30, 2005 and their Annual Reports
on Form 10-K for the year ended December 31, 2004, filed with the SEC.  The
Utilities undertake 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.

Link to this page: