News Releases

Sierra Pacific Resources Announces Early Results of Tender Offers for Debt Securities

Nov 30, 2006

Sierra Pacific Resources (NYSE: SRP) announced today early results of its previously announced tender offers (each, an "Offer" and collectively, the "Offers") for up to $110 million aggregate principal amount of its outstanding 7.803% Senior Notes due 2012 (the "7.803% Senior Notes"), 8.625% Senior Notes due 2014 (the "8.625% Senior Notes") and 6.75% Senior Notes due 2017 (the "6.75% Senior Notes," and collectively with the 7.803% Senior Notes and the 8.625% Senior Notes, the "Notes" and each a "series" of Notes).

The terms and conditions of the Offers are set forth in an Offer to Purchase (the "Offer to Purchase") and a Letter of Transmittal, each dated November 15, 2006. As fully described in the Offer to Purchase, each of the Offers is conditioned on the Company purchasing no more than an aggregate principal amount of $110 million of all Notes validly tendered in the Offers. To meet this condition, the Company has terminated the Offer for the 6.75% Senior Notes. All of the 6.75% Senior Notes that have been tendered will be promptly returned to the tendering holders. For the remaining series of Notes, the tables below set forth the aggregate principal amount tendered through the close of business on November 29, 2006 and the consideration to be paid upon acceptance of such tendered Notes.

In the Offer to Purchase, the Company offered to purchase the aggregate principal amount set forth in the table below in the column captioned "Principal Purchase Amount" of the 7.803% Senior Notes and 8.625% Senior Notes (in each case, the "Principal Purchase Amount"). In connection with the termination of the offer for the 6.75% Senior Notes and in accordance with the terms of the Offers, the Company has increased the Principal Purchase Amount of the 8.625% Senior Notes and decreased the Principal Purchase Amount of the 7.803% Senior Notes, in each case as set forth in the table below in the column captioned "Revised Principal Purchase Amount."

                                                     Revised      Principal
                         Principal      Principal    Principal    Amount
  CUSIP       Security    Amount        Purchase     Purchase     Tendered
  No.        Description Outstanding(1)  Amount      Amount       to Date

  826428 AJ 3  7.803%   $99,142,000   $30,000,000  $25,000,000   $25,308,000

  826428 AH 7  8.625%  $335,000,000   $50,000,000  $85,000,000  $129,565,000

  Security          Tender Offer      Early Tender    Total
  Description       Consideration(2)  Premium(2)      Consideration(2)

  7.803% Notes          $1,035          $30.00        $1,065
  8.625% Notes          $1,055          $30.00        $1,085

  1. Aggregate principal amount outstanding as of November 15, 2006.
  2. Per $1,000 principal amount of tendered Notes that are accepted for

Holders of 7.803% Senior Notes and 8.625% Senior Notes that validly tendered and did not withdraw their Notes prior to 5:00 p.m., New York City time, on Wednesday, November 29, 2006 (the "Early Tender Time"), will receive the Total Consideration, which includes the Tender Offer Consideration plus an early tender premium payment of $30.00 per $1,000 principal amount of Notes tendered (the "Early Tender Premium") that are accepted under the Offers. Holders that validly tender 7.803% Senior Notes and 8.625% Senior Notes after the Early Tender Time but at or prior to 12:00 midnight, New York City time, on Thursday, December 14, 2006, unless such time is extended or earlier terminated (the "Expiration Time"), will be entitled to receive the Tender Offer Consideration, which does not include the Early Tender Premium. All holders that tender Notes that are accepted for payment will also receive accrued and unpaid interest up to, but excluding, the settlement date, which is expected to occur on or promptly after the Expiration Time.

Since the aggregate principal amount of the 7.803% Senior Notes and 8.625% Senior Notes validly tendered and not withdrawn at the Expiration Time will exceed the Revised Principal Purchase Amount of such series, the Company, subject to the terms and conditions of the Offers and provided it accepts Notes for purchase in any such series, will accept Notes of such series for purchase on a pro rata basis. The Company will determine the final proration factor as soon as practicable after the Expiration Time and will promptly announce the results of proration by press release.

This press release does not constitute an offer to buy or the solicitation of an offer to sell any of the Notes, described above. The Company has retained Credit Suisse (USA) LLC to serve as the exclusive Dealer Manager for the Offers and Morrow & Co., Inc. to serve as the Information Agent. Requests for documents may be directed to Morrow & Co., Inc. by telephone at (800) 607- 0088 (toll-free) or (203) 658-9400. Questions regarding the Offers may be directed to Credit Suisse (USA) LLC at (800) 820-1653 (toll-free) or (212) 538-0652 (collect). The full terms and conditions of the Offers are set forth in the Offer to Purchase, which was mailed to the holders of the Notes.

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.

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SOURCE: Sierra Pacific Resources

CONTACT: Media: Andrea Smith, +1-702-367-5843, or Analysts: Britta
Carlson, +1-702-367-5624, both for Sierra Pacific Resources

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