RENO, Nev., Aug. 10 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) announced today that it has entered into an agreement to purchase
all $140,860,000 aggregate principal amount of its 7.93% Senior Notes due 2007
(the "Senior Notes") in the remarketing of the Senior Notes that occurred
today, as scheduled.  The Senior Notes were originally issued on November 16,
2001 in connection with Sierra Pacific Resources' Premium Income Equity
Securities ("PIES") in the form of Corporate PIES (NYSE: SRC).  No holders of
Senior Notes elected to exclude their Notes from the remarketing by 5:00 p.m.,
New York City time, on Thursday, August 4, 2005 and therefore all of the
Senior Notes were included in the remarketing.  Following the settlement of
the remarketing, scheduled for August 15, 2005, Sierra Pacific Resources
intends to retire all of the Senior Notes.
    The proceeds from the remarketing of the Senior Notes will be used to
purchase treasury securities and to pay the fees associated with the
remarketing.  The treasury securities will serve as substitute collateral for
the Senior Notes component of the PIES to secure holders' obligations under
the related forward purchase contracts.  The proceeds of the treasury
securities upon or after maturity will be used to provide the consideration
necessary to fulfill holders' obligations under the related forward purchase
contracts on November 15, 2005 and to pay the aggregate amount of remaining
interest payments to the holders of the Corporate PIES through November 15,
2005.  Following the settlement date of the remarketing on August 15, 2005,
holders of PIES will hold PIES consisting of a purchase contract to buy shares
of the Company's common stock and the applicable ownership interest in the
treasury portfolio that will be substituted for the Senior Notes following the
remarketing.

    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.

    This press release shall not constitute an offer to sell, or the
solicitation of an offer to buy, the securities of Sierra Pacific Resources,
nor shall there be any offer, solicitation or sale of any securities of Sierra
Pacific Resources in any state in which such offer, solicitation or sale would
be unlawful prior to the registration or qualification under the securities
law of any such state or jurisdiction.

    Certain matters in this press release are forward-looking statements.
Cautionary statements regarding the future performance of Sierra Pacific
Resources are contained in its Quarterly Report on Form 10- Q for the period
ended June 30, 2005, filed with the SEC.

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