LAS VEGAS, Oct. 11 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) today said that the U.S. District Court for the Southern District
of New York has vacated a prior summary judgment by the U.S. Bankruptcy Court
for the Southern District of New York that called for Sierra Pacific's
electric utilities to pay Enron Power Marketing Inc. a total of approximately
$336 million for terminated contracts.
    In the ruling issued yesterday, District Court Judge Barbara Jones
remanded the case back to the Bankruptcy Court to rehear facts, issues and
arguments of the case.
    Walter Higgins, chairman and chief executive officer of Sierra Pacific
Resources said, "We are very pleased with this favorable ruling.  Our company
will have no further comment until we have had an opportunity to fully review
the judge's order."

    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 Sierra Pacific Resources and
its subsidiaries, Nevada Power Company and Sierra Pacific Power Company,
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
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 Company's subsidiaries, particularly Nevada Power Company and Sierra
Pacific Power Company. For Nevada Power Company and Sierra Pacific Power
Company, these risks and uncertainties include, but are not limited to,
unfavorable rulings in their future rate cases, their ability to access the
capital markets to refinance debt and for general corporate purposes, their
ability to purchase sufficient power to meet their power demands, whether
terminated power suppliers will be successful in pursuing claims against
Nevada Power and Sierra Pacific Power for liquidated damages under their
terminated power contracts and weather conditions during the summer months of
2003 and beyond. Additional cautionary statements regarding other risk factors
that could have an effect on the future performance of Sierra Pacific
Resources, Nevada Power Company and Sierra Pacific Power Company are contained
in filings with the SEC. The Companies 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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