Sierra Pacific Resources (NYSE: SRP) today reported consolidated third quarter 2002 net income of $79.4 million, or 78 cents per share, compared to net income of $80.4 million, or 89 cents per share, for the same quarter in 2001.

"Our third quarter results indicate we are making progress in efforts to restore the company's financial health," said Walt Higgins, chairman, president and chief executive officer of Sierra Pacific Resources. "Importantly, we have completed refinancing the credit facilities at both utilities and have paid continuing power suppliers amounts owed them under contract."

Quarterly earnings were affected by customer growth and above-normal temperatures, particularly in July. While retail revenues rose, total quarterly revenues for the company's utility subsidiaries, Nevada Power Company and Sierra Pacific Power Co., declined due to lower wholesale prices and sales volumes.

For the third quarter, excluding equity in earnings of Sierra Pacific Resources, Nevada Power recorded earnings of $79.3 million, compared with net income of $78.8 million a year earlier. Sierra Pacific Power reported quarterly earnings of $12.6 million for the third quarter, compared to third quarter 2001 earnings of $11.6 million.

For the first nine months of 2002, Sierra Pacific Resources had a net loss of $268 million, compared with net earnings of $51 million for the comparable period in 2001. The primary cause for the 2002 loss was the disallowance in March of $434.1 million in deferred energy costs for Nevada Power Company and the disallowance in May of $53.1 million of deferred energy costs for Sierra Pacific Power.

During the third quarter of 2002, retail electric revenues increased at Nevada Power compared with a year earlier because of recovery of deferred energy costs in 2002 and an increase in cooling degree-days resulting in higher sales. Nevada Power commercial and industrial revenues were higher for both the three and nine-month periods due to customer growth and recovery of deferred energy costs.

Retail electric revenues for Sierra Pacific Power were higher for the third quarter of 2002, compared with the same period a year earlier due to recovery of deferred energy costs, effective June 1, 2002, and warmer-than- normal weather in July.

Webcast Scheduled

Senior management of Sierra Pacific will discuss the second quarter financial results during a live webcast on Thursday, Nov. 14, 2002, at 7 a.m. Pacific Standard Time. Interested parties can access the webcast with the following link: http://www.on24.com/clients/default/audioevent.html?eventid=1150 The webcast will also be accessible on the Sierra Pacific Resources' web site at http://www.sierrapacificresources.com/investors/news /

To listen to a recording of the webcast by telephone, call 1-888-211-2648. Use conference ID number 2620485 to access the recording. The recording will be available approximately two hours after the conclusion of the webcast.

An archived version of the webcast will be available on the Sierra Pacific Resources web site for approximately one month following the live webcast.

Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power, the electric utility for most of southern Nevada, and Sierra Pacific Power, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power also distributes natural gas in the Reno-Sparks area of northern Nevada. A third subsidiary, the Tuscarora Gas Pipeline Company, owns a 50 percent interest in an interstate natural gas transmission partnership.

This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources 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, further unfavorable rulings in pending and future rate cases, the ability of the Company to access capital markets in light of recent ratings downgrades, whether suppliers will continue to honor existing power and fuel supply contracts, whether long-term power costs can be lowered through negotiation or administrative proceedings, weather conditions during the summer of 2002 and beyond, operating hazards, uninsured risks and changes in energy-related federal or state legislation and regulations. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company's Form 10-K filed with the SEC. The 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.

  Financial Highlights:

  Sierra Pacific Resources
  Financial Highlights
  (In thousands, except for
   per share amount)

  Third Quarter 2002              SRP                         NPC
                           2002         2001          2002          2001
  Revenues            $1,020,019    $2,001,934     $712,536    $1,395,496
  Operating Expenses     876,692     1,879,744      603,353     1,300,729
  Net Income (Loss)(1)    79,374        80,409       79,304        78,751
  Net Income (Loss)
   Per Share               $0.78         $0.89           --           ---
  Net Income (Loss)
   Contribution
   Per Share                  --            --        $0.78         $0.87
  SRP Weighted Average
   Shares Outstanding    102,131        90,303      102,131        90,303


  Third Quarter 2002              SPP
                           2002         2001
  Revenues              $303,496      $600,788
  Operating Expenses     273,475       575,186
  Net Income (Loss)(1)    12,568        11,606
  Net Income (Loss)
   Per Share                  --            --
  Net Income (Loss)
   Contribution
   Per Share               $0.12         $0.13
  SRP Weighted Average
   Shares Outstanding    102,131        90,303


  Year to Date
   September 30, 2002             SRP                        NPC
                           2002         2001         2002          2001
  Revenues            $2,359,280    $3,856,252   $1,545,867    $2,562,949
  Operating Expenses   2,426,805     3,686,254    1,667,281     2,442,824
  Net Income (Loss)(1)  (268,024)       50,965     (216,025)       56,459
  Net Income (Loss)
   Per Share              $(2.62)        $0.62           --            --
  Net Income (Loss)
   Contribution
   Per Share                  --            --       $(2.11)        $0.68
  SRP Weighted Average
   Shares Outstanding    102,118        82,423      102,118        82,423


  Year to Date
   September 30, 2002             SPP
                          2002          2001
  Revenues              $805,085    $1,279,953
  Operating Expenses     764,948     1,224,725
  Net Income (Loss)(1)   (12,389)       36,572
  Net Income (Loss)
   Per Share                  --            --
  Net Income (Loss)
   Contribution
   Per Share              $(0.12)        $0.44
  SRP Weighted Average
   Shares Outstanding    102,118        82,423

   Notes:
   1) For Nevada Power Company, does not include Equity in Earnings (Losses)
      of Sierra Pacific Resources

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Audio: http://www.on24.com/clients/default/audioevent.html?eventid=1150

SOURCE: Sierra Pacific Resources

CONTACT: analysts, Rich Atkinson, +1-775-834-5640, or Vicki Erickson,
+1-775-834-5646, or media, Karl Walquist, +1-775-834-3891, all of Sierra
Pacific Resources

Web site: http://www.sierrapacificresources.com/investors/news

Web site: http://www.sierrapacific.com/