Utilities Support Three Solar and Geothermal Programs

    LAS VEGAS, Oct. 25 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) today announced that its two electric utilities, Nevada Power
Company and Sierra Pacific Power Company, have recently contracted with three
renewable energy producers to purchase Renewable Energy Credits for
electricity generated by solar and geothermal resources.  The contracts
finalized earlier in October will help the Nevada utilities meet their
Renewable Energy Portfolio Standards which require that a certain percentage
of electricity generated to serve customers must come from renewable energy
resources in Nevada.

    The new contracts include:

    Solar

     *  Nevada Power is acquiring credits from Powerlight Corporation for
        solar photovoltaic generation, a project undertaken in conjunction
        with the Las Vegas Valley Water District.  Powerlight and the water
        district will be installing 3.1 megawatts* of solar generation to
        power four facilities in the Las Vegas Valley.  Construction on the
        installations could begin late in 2005.

     *  Nevada Power is purchasing credits from Your Vitamins Inc. of
        Henderson, a company that already is operating a solar array on one of
        its facilities that generates approximately one-fourth of one
        megawatt* of electricity.

    Geothermal

     *  Sierra Pacific Power is contracting with subsidiaries of Ormat to
        purchase credits from three geothermal projects already operating in
        northern Nevada.

    "Nevada has a tremendous amount of native renewable energy resources and
legislation adopted by our state's leaders has encouraged its development to
meet Nevadans' growing needs for energy," said Roberto Denis, vice president
of energy supply for Sierra Pacific Resources.
    "We are pleased to sign these contracts for energy credits with some of
Nevada's leading renewable energy developers," Denis said.  "This is a win-win
for both the renewable developers, so they have incentive to keep building,
and for our utilities who are committed to using renewable energy resources to
serve customers."
    The contracts signed this month are a part of the two utilities'
compliance with state legislation that requires the use of a certain
percentage of renewable energy sources -- solar, wind, geothermal and
biomass -- to generate electricity for customers within the state.  The
legislation contains an escalation provision that requires providers of
electric service to increase the use of renewable energy by 2 percent every
third year until the provider's portfolio accounts for 15 percent of its total
energy sales by 2013.  Solar-generated power must account for 5 percent of the
total renewable energy portfolio.
    These contracts will help both utilities to meet approximately 12 percent
of their solar requirement beginning in 2005.  With these new contracts,
approximately 7.5 percent of the two utilities' electricity generated in
Nevada in 2005 will come from renewable sources.

    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.

    *One megawatt will serve approximately 200 homes during peak usage
     periods.

    Forward-Looking Statements:  This press release contains forward-looking
statements regarding the future performance of 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.  These risks and uncertainties include, but are not
limited to, the parties' abilities to perform under the renewable contracts,
weather conditions, the ability of the renewables suppliers to obtain
financing and complete construction of their renewables installation and/or
maintain their renewables projects.  Additional cautionary statements
regarding other risk factors that could have an effect on the future
performance of Nevada Power Company and Sierra Pacific Power Company are
contained in their Quarterly Reports on Form 10-Q for the quarter ended June
30, 2004 and their Annual Reports on Form 10-K for the year ended December 31,
2003, filed with the SEC.  Nevada Power Company and Sierra Pacific Power
Company 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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