News Releases

Nevada Public Utilities Commission Grants Rate Decrease

RENO, Nev.
Oct 25, 2006

The Public Utilities Commission of Nevada (PUCN) today approved a rate decrease for natural gas customers of Sierra Pacific Power Company, a wholly owned subsidiary of Sierra Pacific Resources (NYSE: SRP). The action will reduce customers' natural gas bills by 2.4 percent, or a drop of about $2 per month for the typical residential customer using 59 therms of natural gas (from $82.45 to $80.49). The new rate becomes effective December 1, 2006.

"This is good news for our customers," said Mary Simmons, vice president of external affairs for Sierra Pacific Power. "High natural gas prices have plagued our industry for the past few years and today's decision reflects the recent decline in prices as well as lower forecasts of natural gas prices for the coming year. We're happy to be able to pass along these savings to our customers heading into the winter heating season."

Sierra Pacific Power Company serves approximately 145,000 natural gas customers in the Reno-Sparks area in northern Nevada.

Simmons went on to explain that the company makes an annual filing with the PUCN that is designed to pass along to customers the rising or falling costs of natural gas that the company pays to its natural gas suppliers. This is done on a dollar-for-dollar basis and does not include any profit or operating costs of the company. The PUCN also sets a new rate based upon what the company expects to pay for natural gas in the next year to serve its customers, also with no profit to the company.

Today's action by the PUCN reflects a reduction in natural gas prices since the company made its initial filing in May. The company worked with the PUCN staff and the state's Bureau of Consumer Protection to reach an agreement that would reduce customers' rates, according to Simmons.

She said that there are a number of things customers can do to reduce heating bills like adding insulation, weather-stripping and caulking windows and doors, and checking out furnaces for efficient operation.

Descriptions of energy efficiency tips, programs, and even a home energy audit are available on Sierra Pacific's website at The company also has brochures that urge customers to "Take Control of Your Energy Use," available at the company's office, or by calling (775) 834-4444.

Forward-Looking Statements: This press release contains forward-looking statements regarding the future performance of 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, unfavorable rulings in Sierra Pacific Power's general rate cases and deferred energy rate cases. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Power Company are contained in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, and its Annual Report on Form 10-K for the year ended December 31, 2005, filed with the SEC. Sierra Pacific Power Company 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.

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SOURCE: Sierra Pacific Power Company

CONTACT: Media, Faye I. Andersen, +1-775-834-4822, or Analysts, Britta
Carlson, +1-702-367-5624, both for Sierra Pacific Power Company

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