Sierra Pacific Resources (NYSE: SRP) today reported earnings applicable to common stock of $15.6 million, or 7 cents per share, for the three months ended March 31, 2007, compared with $1.2 million, or 1 cent per share, for the same period in 2006.

The improvement in earnings was primarily driven by a settlement regarding carrying charges on Nevada Power Company's 2001 deferred energy rate case, continued customer growth and lower interest expenses.

Walter Higgins, chairman and chief executive officer of Sierra Pacific Resources, said, "Both of our utilities are benefiting from customer growth and we are continuing to see positive results from our back to basics strategy and organizational efficiencies implemented during the past two years. I'm also pleased to report that we are well positioned to serve our customers' needs during the upcoming summer cooling season."

"For the future," Higgins added, "we are also making excellent progress in diversifying our energy portfolio by adding more efficient generating facilities as well as continuing to acquire power from renewable energy resources. Two new solar projects from which we will be acquiring power include the new 64-megawatt SolarOne facility south of Las Vegas that is scheduled to begin operations this month, and the photovoltaic solar installation now under construction at Nellis Air Force Base scheduled to begin operations by year end. Once both of these projects are on line, Nevada Power's customers will utilize more solar electricity per capita than any utility in the nation. Plus, these projects will put our utilities well ahead of schedule to meet the state's solar energy portfolio targets."

Nevada Power Company First Quarter Results

Nevada Power Company reported net income of $4.6 million for the first quarter of 2007, compared with a net loss of $3.3 million for the same period in 2006.

Nevada Power's quarterly retail electric revenues increased compared to the same quarter a year earlier due to increases in retail rates and customer growth. The number of residential, commercial and industrial customers increased by 3.3%, 4.9% and 6.4%, respectively.

Interest on long-term debt was $3 million lower than in the first quarter of 2006 primarily due to refinancing activities. Maintenance expense increased for the quarter compared to the same period in 2006 mainly due to higher maintenance costs for the Chuck Lenzie Generating Station and the timing of outages at the Reid Gardner Generating Station.

Purchased power costs were lower compared to the first quarter of 2006 due to increased reliance on internal power generation.

Sierra Pacific Power Company First Quarter Results

For the first quarter of 2007, Sierra Pacific Power reported earnings applicable to common stock of $22 million compared with $12.3 million for the same period a year earlier.

Sierra Pacific Power's retail electric revenues increased for the first quarter compared with the same period in 2006 primarily due to customer growth and rate increases. The number of residential, commercial and industrial customers increased by 2.2%, 4.1% and 3.4%, respectively, compared with the same quarter in 2006.

Sierra Pacific Power's retail natural gas revenues decreased during the first quarter compared with the same period in 2006 because of warmer temperatures and decreases in retail customer rates.

Maintenance expenses were lower during the first quarter because of planned maintenance at the Tracy Generating Station in the first quarter of 2006 and economic temporary shutdown of two Tracy generating units during the first quarter 2007.

Webcast Scheduled for 7 a.m. PDT Today

Senior management of Sierra Pacific Resources will review the company's financial results, regulatory issues and other matters during a conference call and live webcast today, May 1, at 7 a.m. Pacific Daylight Time.

  The webcast will be accessible on the Sierra Pacific Resources web site:
  www.sierrapacificresources.com.

An archived version of the webcast will remain on the Sierra Pacific Resources' web site for approximately one month following the live webcast. To listen to a recording of the call by telephone, call (800) 475-6701 and use the conference call ID number, 870729, to access the recording. International callers should dial (320) 365-3844.

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.

This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources and its subsidiaries, Nevada Power Company and 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. For Sierra Pacific Resources, these risks and uncertainties include, but are not limited to, Sierra Pacific Resources' ability to maintain access to the capital markets, Sierra Pacific Resources' ability to receive dividends from its subsidiaries and the financial performance of Sierra Pacific Resources' subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company. For Nevada Power Company and Sierra Pacific Power Company, these risks and uncertainties include, but are not limited to, unfavorable rulings in their pending and future rate cases, their ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, and their ability to purchase sufficient fuel, natural gas and power to meet their power demands and natural gas demands for Sierra Pacific Power Company. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Resources, Nevada Power Company and Sierra Pacific Power Company are contained in their Annual Reports on Form 10-K for the year ended December 31, 2006, filed with the SEC. The Companies undertake 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.

Gross margin is presented by NPC and SPPC in order to provide information by segment that management believes aids the reader in determining how profitable the electric and gas business is at the most fundamental level. Gross margin, which is a "non-GAAP financial measure" as defined in accordance with SEC rules, provides a measure of income available to support the other operating expenses of the business and is utilized by management in its analysis of its business.

NPC and SPPC believe presenting gross margin allows the reader to assess the impact of regulatory treatment and their overall regulatory environment on a consistent basis. Gross margin, as a percentage of revenue, is primarily impacted by the fluctuations in regulated electric and natural gas supply costs versus the fixed rates collected from customers. While these fluctuating costs impact gross margin as a percentage of revenue, they only impact gross margin amounts if the costs cannot be passed through to customers. Gross margin, which NPC and SPPC calculate as operating revenues less fuel and purchased power costs, provides a measure of income available to support the other operating expenses. Gross margin changes based on such factors as general base rate adjustments (which are required to be filed by statute every two years) and reflect NPC and SPPC's strategy to increase internal power generation versus purchased power, which generates no gross margin. Reconciliations between GAAP operating revenues and gross margin are provided in tables herein. These non-GAAP measures should not be considered as substitutes for the GAAP measures.

The companies expect to file their Forms 10-Q for the period ended March 31, 2007, with the Securities and Exchange Commission on May 8, 2007, at which time they will be available without charge through the EDGAR system at the SEC's website. The Form 10-Q reports will also be posted on Sierra Pacific Resources' website, www.sierrapacificresources.com.

                             Financial Highlights
               (Dollars in Thousands, Except Per Share Amounts)
                                 (Unaudited)

  Sierra Pacific Resources

                               Three Months Ended
                                    March 31,
                               2007          2006
  Operating revenue          $756,431      $707,056
  Other operating expenses    $84,747       $90,276
  Maintenance                 $23,745       $21,930
  Depreciation &
   amortization               $56,233       $57,461

  Operating income            $61,930       $59,577

  Interest Charges            $69,669       $72,599
  Preferred stock dividend
   requirements                   $--          $975

  Net Income Applicable to
   Common Stock               $15,607        $1,242

  Amount per share
   basic and diluted
     Net Income Applicable
      to Common Stock           $0.07         $0.01

  Weighted Average
   Shares of Common
   Stock Outstanding:
  Basic -                 221,245,427   200,868,612
  Diluted -               221,701,854   201,265,472


  Capital Structure              March 31, 2007            March 31, 2006

  Current maturities of
   long-term debt              $8,625            0%        $196,325     3%
  Long-term debt            4,147,322           61%       4,122,580    64%
  Preferred Stock                  --                        50,000     1%
     Total Debt            $4,155,947           61%      $4,368,905    68%
  Common Equity             2,642,158           39%       2,061,378    32%
     Total
      Capitalization       $6,798,105          100%      $6,430,283   100%



  Nevada Power Company

                               Three Months Ended
                                    March 31,
                               2007          2006
  Operating revenue          $418,165      $381,275
  Other operating expenses    $50,839       $54,133
  Maintenance                 $17,464       $14,157
  Depreciation &
   amortization               $35,761       $34,237

  Operating income            $27,968       $25,663

  Allowance for other
   funds used during
   construction                $3,098        $5,429
  Carrying charge on Lenzie   $10,082        $4,031
  Reinstated interest on
   deferred energy            $11,076           $--
  Interest Charges            $43,992       $41,194

  Net Income (loss)            $4,582       $(3,296)


  Capital Structure              March 31, 2007            March 31, 2006

  Current maturities of
   long-term debt              $6,225            0%        $163,925     4%
  Long-term Debt            2,501,650           53%       2,388,210    56%
     Total Debt            $2,507,875           54%      $2,552,135    59%
  Common Equity             2,176,988           46%       1,741,843    41%
     Total
      Capitalization       $4,684,863          100%      $4,293,978   100%



  Sierra Pacific Power

                               Three Months Ended
                                    March 31,
                               2007          2006
  Operating revenue:         $337,999      $325,497
  Other operating expenses    $32,848       $34,175
  Maintenance                  $6,281        $7,773
  Depreciation &
   amortization               $20,472       $23,224

  Operating Income            $33,911       $29,991

  Allowance for other
   funds used during
   construction                $3,469          $703
  Interest Charges            $14,783       $18,156
  Dividend requirements of
   preferred stock                $--          $975

  Earnings Applicable to
   Common Stock               $21,968       $12,297


  Capital Structure              March 31, 2007            March 31, 2006

  Current maturities of
   long-term debt              $2,400            0%         $32,400     2%
  Long-term debt            1,095,180           55%       1,073,197    57%
  Preferred Stock                  --                        50,000     3%
     Total Debt            $1,097,580           55%      $1,155,597    61%
  Common Equity               906,987           45%         731,438    39%
     Total
      Capitalization       $2,004,567          100%      $1,887,035   100%



                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                 Gross Margin
                            (Dollars in Thousands)
                                 (Unaudited)

  Nevada Power Company

                                                    Three Months Ended
                                                         March 31,
                                                    2007           2006
  Operating Revenue:
  Electric                                        $418,165       $381,275

  Energy Costs:
    Purchased power                                 95,594        161,596
    Fuel for power generation                      164,085         89,822
    Deferral of energy costs-net                    26,932          3,167
  Total Energy Costs                              $286,611       $254,585

  Gross Margin                                    $131,554       $126,690


  Sierra Pacific Power Company

                                                    Three Months Ended
                                                         March 31,
                                                    2007           2006
  Operating Revenues:
    Electric                                      $252,879       $238,772
    Gas                                             85,120         86,725
  Total Revenue                                   $337,999       $325,497

  Energy Costs:
    Purchased power                                $83,310        $92,148
    Fuel for power generation                       64,069         53,287
    Gas purchased for resale                        71,646         67,396
    Deferral of energy costs-electric-net           13,861            905
    Deferral of energy costs-gas-net                (1,945)         4,731
                                                  $230,941       $218,467

  Energy Costs by Segment:
    Electric                                      $161,240       $146,340
    Gas                                             69,701         72,127
                                                  $230,941       $218,467

  Gross Margin by Segment:
    Electric                                       $91,639        $92,432
    Gas                                             15,419         14,598
                                                  $107,058       $107,030

First Call Analyst:
FCMN Contact: kwalquist@sppc.com

SOURCE: Sierra Pacific Resources

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

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