LAS VEGAS, Nov. 14 /PRNewswire/ -- Nevada Power Company, a subsidiary of
Sierra Pacific Resources (NYSE: SRP), today made required filings with the
Public Utilities Commission of Nevada (PUCN) seeking to recover costs for fuel
and purchased power as well as conservation and energy efficiency programs.
In order to mitigate the financial impact on customers, the company is seeking
to spread collection of its new deferred energy balance over three years, with
less to be collected in the first year.
    If approved, the deferred energy and conservation cost recovery filings
made today will result in an increase of 6.29 percent, or $6.55 per month,
effective April 1, 2004, for the typical residential customer using 1200 kWh
per month.

    These filings seek to:
    * Recover over three years fuel and purchased power costs incurred from
      October 1, 2002 through September 30, 2003 ($14 million of $93 million
      in the first year, a less than 1 percent increase in total rates);

    * Set a new going-forward rate for projected fuel and purchased power
      costs through a change to the Base Tariff Energy Rate (about a
      4.9 percent increase in total rates);

    * Recover costs associated with conservation and energy efficiency
      programs ($11 million, also a less than 1 percent increase in
      total rates).

    "Although deferred energy filings seek a dollar-for-dollar pass-through of
costs, we understand that any increase in rates is difficult for our customers
and we're doing everything possible to help mitigate that while maintaining
the financial viability of the company by producing necessary cash flow," said
Pat Shalmy, president of Nevada Power Company.  "Natural gas prices and energy
prices are still high and continue to be extremely volatile -- especially
natural gas," Shalmy added.  "We are trying to take some of the volatility out
of our rates so our customers know what to expect."
    To mitigate the initial impact on ratepayers, the company is proposing to
collect in the first year only 15 percent of the total of the most recent
deferred energy balance.  Further, Nevada Power is proposing to reduce the
overall increase by requesting early implementation of the new Base Tariff
Energy Rate, which is based on a forecast of future energy prices.
    "By requesting to implement these changes in April 2004, not only is the
overall increase lessened, it will make the changes easier for our customers
to understand since our proposed general rate case change would go into effect
at the same time," said Shalmy.  In October, the company filed for a general
rate case, proposing an overall 3.4 percent increase effective in April 2004.
Pending PUCN approvals, the filings made today, combined with the general rate
case, would result in an approximate 9.75 percent increase, or $10.16 per
month, for the typical residential customer in April 2004.
    The company said that the deferred energy balance accrued this year can
principally be attributed to more usage because of the extremely hot weather
as well as the higher natural gas prices experienced throughout the United
States.  The company's last deferred energy filing resulted in a 6 percent
decrease in customer rates, which went into effect in May of this year.

    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' electric utility, Nevada 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.
Nevada Power Company's liquidity and financial condition would be
significantly adversely affected by a requirement to pay or provide additional
cash collateral for the judgment in favor of Enron and by any future ratings
downgrades by S&P or Moody's.  These risks and uncertainties also include, but
are not limited to, unfavorable rulings in Nevada Power Company's pending 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 power suppliers, in addition to Enron,
which terminated power supply contracts in 2002 will be successful in pursuing
claims against Nevada Power Company for liquidated damages under their
terminated power contracts, and weather conditions during the winter 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 and its two utility subsidiaries, Nevada Power Company and Sierra
Pacific Power Company, are contained in their Quarterly Report on Form 10-Q
for the quarter ended September 30, 2003, filed 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.

Link to this page: