LAS VEGAS, April 4 /PRNewswire/ -- A bank syndicate headed by Union Bank
of California has confirmed its line of credit to Sierra Pacific Resources'
(NYSE: SRP) two utility operations, Nevada Power and Sierra Pacific Power, a
decision that provides liquidity to the companies in the wake of a negative
order by the Public Utilities Commission of Nevada (PUCN). As a result of the
syndicate's action, Nevada Power retains its $200 million credit facility and
Sierra Pacific Power retains its $150 million credit facility.
The confirmation follows an announcement by Nevada Power that it will cut
capital expenses and seek reconsideration of the deferred energy order by the
PUCN to disallow nearly half of the company's deferred energy expenses from
last year.
The bank syndicate noted that the PUCN's order represented a material
adverse change in the financial condition of Nevada Power, but waived the
limitations on the credit line after review of the company's grounds for
reconsideration of the order and aggressive cost control efforts.
The syndicate's credit line with Sierra Pacific Resources, parent of the
two utilities, has been terminated.
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 50 percent interest in an interstate natural gas
transmission partnership and several unregulated energy services companies.
SOURCE Nevada Power Company
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Company News On-Call:
http://www.prnewswire.com/comp/604296.html
CONTACT:
Andrea Smith of Nevada Power Company,
+1-702-367-5683
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