Firm Proposes to Stabilize Rates with Slight Decrease Expected in April 2005

    LAS VEGAS, Nov. 15 /PRNewswire/ -- Nevada Power Company, a subsidiary of
Sierra Pacific Resources (NYSE: SRP), today made its required annual deferred
energy filings with the Public Utilities Commission of Nevada (PUCN) to
recover costs it has paid for fuel and purchased power as well as energy
conservation and efficiency programs.  The company is seeking recovery of
$115.9 million in energy expenses incurred during the period October 1, 2003
through September 30, 2004.  The recovery is strictly on a dollar-for-dollar
basis for money spent to purchase energy and does not include any profit to
the company.  The company noted that natural gas prices experienced throughout
the United States have over the past year reached their highest levels in
history.
    Today's filings included a proposal previously presented to the PUCN that
would eliminate volatility of prices for customers.  Under its proposal,
Nevada Power has requested that rate changes previously approved by the PUCN
be delayed until April 1, 2005.  If approved, electric rates for Nevada Power
customers would remain at current levels until April 1, at which time overall
rate decreases of approximately 2.6 percent would be anticipated.  With the
combined effect of the filings, typical single-family residential customers
using 1250 kWh per month could expect their average monthly bill to decrease
from $122.33 to $121.18.
    "Our priorities are to continue providing safe, reliable and affordable
power to our customers while maintaining the financial health of our business
going forward," said Pat Shalmy, president of Nevada Power Company.  "Nevada
Power management and personnel have worked hard to develop proposals with the
intention of providing our customers the most stable rates possible and not
subjecting them to frequent and unnecessarily large increases and decreases.
Under our current proposals, customers will experience modest rate decreases
in April 2005 and these would be the only changes in Nevada Power rates until
April of 2006."
    The company said that the deferred energy balance accrued this year can
principally be attributed to the higher natural gas prices. Before recovery,
all wholesale costs are extensively reviewed in hearings conducted by the
PUCN.
    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.

    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, Sierra Pacific Resources' ability to receive dividends from
its subsidiaries in the near future 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, adverse
decisions in the Enron litigation or other pending or future litigation,
unfavorable rulings in Nevada Power's future rate cases, Nevada Power
Company's ability to access the capital markets for construction and capital
costs and general corporate purposes, and their ability to purchase sufficient
power to meet power demands.  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 their Quarterly Reports on Form 10-Q for the quarter ended
September 30, 2004 and their Annual Reports on Form 10-K for the year ended
December 31, 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: