News Releases

Sierra Pacific Resources Announces Sale of Its Short-Term Floating Rate Senior Notes

RENO, Nev.
Jun 20, 2005

Sierra Pacific Resources (NYSE: SRP) announced today that it has completed the private placement of $240 million of its short-term floating rate senior notes. The notes are unsecured obligations of Sierra Pacific Resources and rank equally with its other senior indebtedness. Sierra Pacific Resources will use the net proceeds from the sale of the notes to make an equity contribution to its subsidiary, Nevada Power Company, and for general corporate purposes.

The offering was made pursuant to a purchase agreement only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended. The notes are not registered under the Securities Act and may not be offered or sold by holders thereof without registration unless an exemption from such registration is available. This press release does not constitute an offer to sell these notes, nor a solicitation for an offer to purchase these notes, nor is it a solicitation of any proxy or consent for any purpose.

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% interest in an interstate natural gas transmission partnership.

Certain matters in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Cautionary statements regarding the future performance of Sierra Pacific Resources are contained in its Quarterly Report on Form 10- Q for the period ended March 31, 2005, filed with the SEC. Sierra Pacific Resources undertakes 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.

SOURCE: Sierra Pacific Resources

CONTACT: Media, Karl Walquist, +1-775-834-3891, or Analysts, Britta
Carlson, +1-702-367-5624, both for Sierra Pacific Resources