LAS VEGAS, Oct. 12 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) and Pinnacle West Capital Corporation (NYSE: PNW) today announced
that the Federal Trade Commission has issued a request for additional
information and documentary material regarding the proposed acquisition by
Sierra Pacific Resources' subsidiary, Nevada Power Company, of the 75%
interest of Pinnacle West Capital Corporation in the Silverhawk power plant in
Nevada.
    The parties were not notified which agency, the FTC or the Antitrust
Division of the Department of Justice had been cleared to review the
transaction until the initial 30-day waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 had nearly expired.  The
request will extend the waiting period imposed by the HSR Act until 30 days
after the parties have substantially complied with the request.  The parties
have stated that they will cooperate fully with the FTC in resolving any
questions the agency may have.
    Silverhawk is a 570-megawatt natural gas-fueled, combined-cycle generating
unit that has been operating since May 2004.
    In addition to Pinnacle West's current interest in Silverhawk, the
Southern Nevada Water Authority (SNWA) holds the remaining 25% interest.  In
February, Nevada Power entered into a long-term agreement to operate the
SNWA's interest in the plant.  In exchange, the SNWA retains its ownership and
has begun receiving a firm energy supply at a predictable price.
    Nevada Power Company is a regulated public utility engaged in the
distribution, transmission, generation, purchase and sale of electric energy
in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson,
Searchlight, Laughlin and their adjoining areas.  The company also provides
electricity to Nellis Air Force Base, the Department of Energy at Mercury and
Jackass Flats at the Nevada Test Site.  Nevada Power Company provides
electricity to approximately 725,000 residential and business customers in a
4,500 square mile service area.
    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.

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