Nevada Power Company, a wholly-owned subsidiary of Sierra Pacific Resources (NYSE: SRP), today announced that it has reached a settlement agreement with the Nevada Division of Environmental Protection and the U.S. Environmental Protection Agency involving long-standing environmental issues related to the Reid Gardner Generating Station in southern Nevada.

Under terms of the agreement, Nevada Power will pay a $1.1 million fine for alleged violations, most involving monitoring and record-keeping, and certain alleged exceedances. The utility also will move forward with its existing and previously approved plans to spend $84.2 million on upgrades to reduce emissions at the plant, which is located about 50 miles northeast of Las Vegas.

The $84.2 million in emission-control upgrades were included in Nevada Power's 2006 Integrated Resource Plan and were approved last year by the Public Utilities Commission of Nevada.

Additionally, Nevada Power will fund over the next seven years more than $4 million in energy conservation projects for the Clark County School District.

Roberto Denis, Sierra Pacific Resources' senior vice president for energy supply, emphasized that the company is in compliance with all applicable statutes, regulations and permits, and is committed to meeting or exceeding all environmental standards.

"We have been working cooperatively with these agencies for several years in order to resolve this issue, and we are pleased to bring this matter to a close," Denis said. "This is another major step in resolving problems from the past as our company continues to move forward. We are committed to serving our communities as a good corporate citizen and as responsible stewards of the environment we all share."

While most of the alleged violations involve a failure to adequately monitor and record data, Nevada Power -- under the agreement -- does not admit liability for any of the issues.

The settlement announced today is subject to a 30-day public comment period that will commence once it is entered into the Federal Register.

Nevada Power Company is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electric energy in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson, Searchlight, Laughlin and their adjoining areas. The Company also provides electricity to Nellis Air Force Base, the Department of Energy at Mercury and Jackass Flats at the Nevada Test Site. Nevada Power Company provides electricity to about 800,000 residential and business customers in a 4,500 square mile service area.

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.

Forward-looking statement: 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, risk related to the installation of the emission control upgrades, Nevada Power Company's ability to access the capital markets to finance the upgrades on favorable terms and risks associated with the final entry of the consent decree. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Nevada Power Company are contained in its Annual Report on Form 10-K for the year ended December 31, 2006, filed with the SEC. Nevada 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.

First Call Analyst:
FCMN Contact: asmith@nevp.com

SOURCE: Sierra Pacific Resources

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