Deferred Energy Filing Calls for 5.6 Percent Residential Reduction,
 5.3 Percent Overall Decrease; Company Also to File for Conservation Recovery

    LAS VEGAS, Nov. 13 /PRNewswire/ -- Nevada Power Company announced today
that it will request an overall rate decrease when it files two required rate
cases tomorrow with the Public Utilities Commission of Nevada (PUCN).
Combined, the deferred energy filing and a conservation cost recovery (GO43)
filing will request a decrease of approximately $81 million in annual cost
recovery which would result in a 5.6 percent rate drop in the typical
residential customer's monthly bill.
    Nevada Power is requesting an overall average 5.3 percent decrease.  The
5.6 percent decrease for single family residential customers would result in
anticipated reductions in monthly bills ranging from $5.62 to $9.20 depending
upon energy consumption.  Residential customers using 1,250 kilowatt hours
would see their monthly bills decrease from $116.08 to $109.69.
    "Power markets are changing and energy prices have decreased significantly
from the energy volatility debacle of 2000-2001," Walter Higgins, chairman,
president and CEO of Sierra Pacific Resources (NYSE: SRP), parent of Nevada
Power, said in explaining a large part of the requested decrease.  "In spite
of our financial challenges this year, we were able to contract for reliable
power supplies for our customers."
    Higgins noted that Nevada Power has challenged in the courts and at the
Federal Energy Regulatory Commission contracts with suppliers.  Some
suppliers, including Enron, had terminated their supply contracts just prior
to the beginning of summer 2002.  "We are hopeful that the trend of lower
energy prices will continue and that we are successful in our proceedings
before the courts and FERC and that these will all contribute to lowering
electric rates in the future," he said.
    Higgins added that although the western energy crisis has abated somewhat
in the past year, there are still deep concerns about the future of Nevada's
energy supplies and potential ramifications for the state's overall economic
health.  He said that the filing also includes a proposal for a process to
reduce customers' exposure to price volatility and secure a reliable and
economic source of supply for southern Nevada.
    Nevada Power is required by Nevada law to make deferred energy filings
annually.  Under Nevada law, the company makes no profit on fuel and energy
costs.  During the preceding year, increases and decreases in fuel and
purchased power costs are held in a balancing account and these changes are
passed on dollar-for-dollar to customers.
    The second filing by Nevada Power, known as a GO43 filing, will also be
made tomorrow.  The company will seek to recover $1.9 million invested in
conservation programs, as approved by the PUCN earlier this year.  The
requested increase ranges from 12 to 20 cents per month on the average single
family residential customer's bill.  These investments pay for air
conditioning load management programs, low-income weatherization grants and
assistance, and energy education and information programs.
    Both the deferred energy and GO43 filings are subject to PUCN review and
approval.  Once the filing is accepted by the PUCN, public hearings will be
scheduled by the PUCN in the next few months.  The company said, subject to
PUCN approvals, the rate reductions could go into effect on or before mid-May
2003.

    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 a 50 percent interest in an interstate natural
gas transmission partnership, several unregulated energy services companies
and Sierra Pacific Communications, a telecommunications network development
company.

Link to this page: