LAS VEGAS, Oct. 1 /PRNewswire/ -- Nevada Power Company, a wholly owned
utility subsidiary of Sierra Pacific Resources (NYSE: SRP), today filed a
General Rate Case (GRC) with the Public Utilities Commission of Nevada (PUCN)
calling for a 3.4 percent rate increase to customers beginning April 1, 2004.
In order to lessen the financial impact on ratepayers, the filing defers the
collection of a significant portion of an overall proposed revenue increase
until January 1, 2005.  The deferral means that the balance of the total
proposed increase -- which otherwise would have been 9.6 percent on April 1,
2004 -- will be offset, resulting in little or virtually no additional impact
on ratepayers since collection of an existing deferred energy balance will
expire on January 1, 2005.
    If the proposal is approved by the PUCN, the typical* residential customer
could expect to pay about $3.61 more per month beginning in April 2004.

    *Based on 1200 KWH monthly average single family residential consumption.

    "We understand that any increase is difficult and we're taking steps to
reduce the effect of the increase on our customers while at the same time
protecting them from unnecessary price fluctuation," said Pat Shalmy,
president of Nevada Power.  "Our recommendation to delay full implementation
of the rate increase until January 2005 will neutralize the effect of the
overall increase since it coincides with the elimination of a deferred energy
balance."
    The rate increase, as proposed in the GRC, is necessary since Nevada Power
has spent $433 million over the past two years to meet the growth in Southern
Nevada and to improve service to customers.  In addition to requesting an
adequate return for its shareholders on this investment, the company is
seeking to recover increased costs, such as health care, that have affected
businesses throughout the United States.  The company also plans to spend
approximately $800 million for new electric facilities during the next few
years to improve the reliability of its service to the fastest-growing area of
the country.
    "Our primary goal is to continue to provide safe, reliable service to our
customers," Shalmy added.  "While continued investment and higher costs are
causing upward pressure on rates, we believe the overall approach we're
recommending will help stabilize the energy situation in Nevada through
long-term planning while maintaining the financial viability of our company by
earning a fair return."
    Under Nevada Revised Statutes, general rate cases are filed every two
years.  The company's last filing in 2001 resulted in a $42 million rate
reduction.  Nevada Power will make a deferred energy filing on November 14,
2003 for fuel and purchased power costs.  The most recent deferred energy
filing resulted in a six percent decrease in rates.

    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.

    Forward-Looking Statements: This press release contains forward-looking
statements regarding the future performance of Nevada Power Company and its
parent, Sierra Pacific Resources, within the meaning of the Private Securities
Litigation Reform Act of 1995.  These statements are subject to a variety of
risks and uncertainties that could cause actual results to differ materially
from current expectations.  For Nevada Power Company, these risks and
uncertainties include, but are not limited to, whether it can obtain a stay of
execution of the judgment of the U.S. Bankruptcy Court for the Southern
District of New York in the lawsuit filed by Enron Power Marketing, Inc.
against Nevada Power and the ultimate outcome of Nevada Power's appeals of the
judgment, unfavorable rulings in its current and future rate cases, its
ability to access the capital markets to refinance debt and for general
corporate purposes, its ability to purchase sufficient power to meet its power
demands, whether terminated power suppliers will be successful in pursuing
claims against Nevada Power for liquidated damages under their terminated
power contracts and weather conditions in Southern Nevada.  For Sierra Pacific
Resources, these risks and uncertainties include, but are not limited to,
Resources' ability to access the capital markets to refinance future debt
maturities and for general corporate purposes, Resources' ability to receive
dividends from its subsidiaries and the financial performance of the
Resources' subsidiaries, particularly Nevada Power Company and Sierra Pacific
Power Company.  Additional cautionary statements regarding other risk factors
that could have an effect on the future performance of Nevada Power Company
and Sierra Pacific Resources are contained in their Quarterly Report on Form
10-Q for the quarter ended June 30, 2003, filed with the SEC.  Nevada Power
Company and Sierra Pacific Resources 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.

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