News Releases

Nevada Power Company Announces Pricing of General and Refunding Notes Offering

Oct 23, 2002

Nevada Power Company, a subsidiary of Sierra Pacific Resources (NYSE: SRP), announced today that it has priced a private offering of $250 million principal amount of its 10 7/8% General and Refunding Mortgage Notes, Series E, due 2009. The notes will be issued at a discounted rate of 94.245%. The notes are expected to be delivered on Oct. 29, 2002.

The company plans to use the proceeds from the sale of the notes to repay its existing $200 million credit facility and for general corporate purposes.

The notes, with a term of seven years, will be secured by the lien of the company's General and Refunding Mortgage Indenture. The notes will be sold to qualified institutional buyers in reliance on Rule 144A and outside the United States in compliance with Regulation S under the Securities Act of 1933 (the "Securities Act"). The notes will not be registered under the Securities Act and may not be offered or sold by holders thereof without registration unless an exemption from such registration is available.

Nevada Power is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electricity in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson, Searchlight, Laughlin and their adjoining areas. The utility also provides electricity to Nellis Air Force Base, the Department of Energy at Mercury and Jackass Flats at the Nevada Test Site. The company provides electricity to approximately 639,000 customers in a 4,500 square mile service area.

This press release does not constitute an offer to sell these securities, nor a solicitation of an offer to purchase these securities, nor is it a solicitation of any proxy or consent for any purpose.

This press release may contain forward-looking statements regarding the future performance of the 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, 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 that have terminated their power supply agreements with us will be successful in pursuing their claims against us for liquidated damages, whether our current suppliers of power and fuel will continue to sell to us in light of our financial condition, whether long-term power costs can be lowered through negotiation or administrative proceedings, conditions within the wholesale power market in the western United States, 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 10-K for the year ended December 31, 2001 and the company's 10-Q for the quarter ended June 30, 2002, filed with the Securities and Exchange Commission. 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.

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SOURCE: Nevada Power Company

CONTACT: Analysts, Rich Atkinson, +1-775-834-5640, or Media, Karl
Walquist, +1-775-834-3891, or Sonya Headen, +1-702-376-5222, all for Nevada
Power Company