Sierra Pacific Resources (NYSE: SRP) today reported consolidated net income applicable to common stock of $90.6 million, or 50 cents per share, for the third quarter of 2004, compared with earnings of $107.8 million, or 59 cents per share, in the same quarter of 2003. The company said earnings from its Nevada Power Company and Sierra Pacific Power Company subsidiaries during the most recent quarter showed strong improvement over the comparable 2003 period.

Consolidated net income applicable to common stock for the nine months ended Sept. 30, 2004, were $1.3 million, compared with a loss of $120.7 million in the same period of 2003, reflecting a combination of improved operating performance and several other items.

The decline in net income when comparing the respective 2004 and 2003 quarters was principally attributed to two factors: 1) an unrealized gain of approximately $61.5 million during the 2003 quarter related to market valuation of the company's convertible notes which was partially offset by 2) the company's increased recognition -- during the 2003 third quarter -- of interest expense related to its dispute with Enron over purchased power contracts. Those reserves amounted to $40.2 million pre-tax, or some $26.1 million after tax.

Walter Higgins, chairman and chief executive officer of Sierra Pacific Resources, said, "We are especially pleased with the continuing improvement of operating performance at Nevada Power Company and Sierra Pacific Power Company, both of which had substantial earnings gains over the prior-year quarter. Our business strategies coupled with the operating performance of our work force produced strong operational and financial results, and we are continuing to benefit from customer growth. We already have surpassed last year's record customer growth at both Nevada Power and Sierra Pacific Power."

Higgins added, "We are continuing to concentrate on restoring our company to financial health as we revolve the serious challenges we confronted during and subsequent to the Western Energy Crisis of 2000-2001. With the recent purchase of a partially completed 1,200-megawatt, gas-fired power plant in southern Nevada we will be reducing our reliance on volatile energy markets.

"We also recently received good news in connection with ongoing litigation involving Enron," Higgins said. "The U.S. District Court for the Southern District of New York vacated a prior summary judgment by the U.S. Bankruptcy Court for the Southern District of New York that called for our utilities to pay Enron approximately $335 million for terminated contracts. That case has been remanded back to the Bankruptcy Court for trial."

Nevada Power Company 3rd Quarter Results

Nevada Power Company reported net income of $86.2 million for the quarter, compared with net income of $62.5 million for the same period in 2003.

Gross electric margin (revenues after energy costs are deducted) increased by approximately $9.5 million, or 3.8%, over the third quarter of 2004. Contributing to the higher margin were customer growth and higher general rates, which were partially offset by lower use per customer due to a cooler summer in 2004.

Total operating expenses were held to the prior year's level. Other interest expense was significantly lower in 2004 than in the third quarter of 2003 when Nevada Power recorded a $28 million interest expense charge due to the September 2003 Enron judgment.

Sierra Pacific Power Company 3rd Quarter Results

Net income available to common shareholders for Sierra Pacific Power was $20.8 million, compared with a net loss $1.3 million for the same period last year.

Total gross margin for the company's electric and natural gas divisions was $20.2 million, or 22.5% higher than in the third quarter of 2004.

Gross electric margin increased by $20.0 million, or 23.6%, compared with the same period a year ago. Contributing to higher electric margin were higher general rates and increased transmission revenues.

Gross natural gas margin increased by $0.2 million, or 3.7%, over last year due to continuing customer growth.

Total operating expense remained at last year's level. Long-term debt interest expense decreased due to slightly lower debt balances and refinancings at lower interest rates. Other interest expense was significantly lower than third quarter 2003 due to the $12 million interest expense charge due to the September 2003 Enron judgement.

A detailed explanation of Sierra Pacific Resources', Nevada Power Company's and Sierra Pacific Power Company's third quarter 2004 financial results is available in the companies' quarterly reports on Form 10-Q for the quarter ended September 30, 2004, which have been filed with the Securities and Exchange Commission and is available without charge through the EDGAR system at the SEC's website. The quarterly reports will also be posted on Sierra Pacific Resources' website, www.sierrapacificresources.com.

Senior management of Sierra Pacific Resources will review the third quarter 2004 financial results, regulatory issues and other matters during a conference call and live webcast today, Nov. 9, at 6:30 a.m. Pacific Standard Time.

Interested parties can access the webcast at the following link: http://w.on24.com/event/9602/r.htm

The webcast will also be accessible on the Sierra Pacific Resources web site at: http://www.sierrapacificresources.com/investors/news/

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 (888) 266-2081 and use the conference call ID number, 591987, to access the recording.

About Sierra Pacific Resources

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. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns a 50 percent interest in an interstate natural gas transmission partnership.

Forward-Looking Statements: 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, Resources' ability to receive dividends from its subsidiaries in the near future and the financial performance of the Company's 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, adverse decisions in the Enron litigation or other pending or future litigation, unfavorable rulings in Nevada Power's future rate cases, Nevada Power Company's ability to access the capital markets for construction and capital costs and general corporate purposes, their ability to purchase sufficient power to meet their power demands. 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 Quarterly Reports on Form 10-Q for the quarter ended September 30, 2004 and their Annual Reports on Form 10-K for the year ended December 31, 2003, 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.

   Financial Highlights:

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

                          SRP                 NPC                 SPP
   Third Quarter
    2004
                     2004      2003      2004      2003      2004      2003

   Revenues      $903,915  $904,347  $633,609  $639,661  $270,002  $264,407
   Operating
    Expenses      741,647   739,200   512,767   511,924   230,947   231,819
   Net Income
    (Loss)
     Applicable
     to Common
     stock         90,647   107,772    40,801    70,963    20,813    (1,292)
   Net Income
    (Loss)
    Per Common
    Share-Basic     $0.50     $0.59        --        --        --        --
   Net Income
    (Loss)
    Contribution
    Per Share          --        --     $0.22     $0.39     $0.11    $(0.01)
   SRP Weighted
    Average Shares
    Outstanding   183,117   182,926   183,117   182,926   183,117   182,296


   Year to Date
   September 30, 2004

                    2004       2003       2004       2003     2004     2003

   Revenues   $2,169,452 $2,173,110 $1,410,067 $1,396,825 $755,623 $775,377
   Operating
    Expenses   1,886,364  1,954,947  1,218,755  1,241,191  671,034  727,019
   Net Income
    (Loss)
    Applicable
    to Common
    stock          1,313   (120,698)    84,382     25,086   (5,653) (27,199)
   Net Income
    (Loss) Per
    Common
    Share-Basic    $0.01     $(1.05)        --         --       --       --
   Net Income
    (Loss)
    Contribution
    Per Share         --         --      $0.46      $0.22   $(0.03)  $(0.24)
   SRP Weighted
    Average
    Shares
    Outstanding  183,045    115,295    183,045    115,295  183,045  115,295



  The components of NPC gross margin are (dollars in thousands):

                           Three Months                 Nine Months
                        Ended September 30,         Ended September 30,
                                      Change                         Change
                                       from                           from
                                       Prior                          Prior
                       2004     2003   Year %        2004       2003  Year %
   Operating
    Revenues:
     Electric      $633,609 $639,661    -0.9%  $1,410,067 $1,396,825   0.9%


   Energy Costs:
    Purchased
     power          300,290  333,069    -9.8%    619,329     657,455  -5.8%
    Fuel for power
     generation      67,216   95,453   -29.6%    176,883     209,900 -15.7%
    Deferred of
     energy
     costs-disallowed    --       --     N/A       1,586      45,964 -96.5%
    Deferral of
     energy
     costs-electric
     -net             9,496  (35,967) -126.4%     91,622      48,260  89.9%

                    377,002  392,555    -4.0%    889,420     961,579  -7.5%

    Gross Margin   $256,607 $247,106     3.8%   $520,647    $435,246  19.6%

Gross margin is presented by NPC in order to provide information that management believes aids the reader in determining how profitable the electric business is at the most fundamental level. Gross margin 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.

  The components of SPPC gross margin are (dollars in thousands):

                           Three Months                 Nine Months
                        Ended September 30,         Ended September 30,
                                       Change                       Change
                                        from                         from
                                        Prior                        Prior
                       2004      2003  Year %      2004       2003   Year %
   Operating
    Revenues:
     Electric      $253,615  $250,476    1.3%   $657,881  $660,956    -0.5%
     Gas             16,387    13,931   17.6%     97,742   114,421   -14.6%
                   $270,002  $264,407    2.1%   $755,623  $775,377    -2.5%

   Energy Costs:
    Purchased
     Power          $92,481  $125,337  -26.2%   $230,577  $288,692   -20.1%
    Fuel for power
     generation      59,494    62,412   -4.7%    166,715   143,144    16.5%
    Deferred
     energy
     costs
     disallowed          --        --    N/A          --    45,000  -100.0%
    Deferral of
     energy costs-
     electric-net    (3,269)  (22,174) -85.3%      1,436    (3,531) -140.7%
    Gas purchased
     for resale      11,322     7,133   58.7%     73,721    77,332    -4.7%
    Deferral of
     energy
     costs-gas-
     net                297     2,200  -86.5%        266    14,023   -98.1%

                    160,325   174,908   -8.3%    472,715   564,660   -16.3%
   Energy Costs by
    Segment:
     Electric      $148,706  $165,575  -10.2%   $398,728  $473,305   -15.8%
     Gas             11,619     9,333   24.5%     73,987    91,355   -19.0%
                   $160,325  $174,908   -8.3%   $472,715  $564,660   -16.3%

   Gross Margin by
    Segment:
     Electric      $104,909   $84,901   23.6%   $259,153  $187,651    38.1%
     Gas              4,768     4,598    3.7%     23,755    23,066     3.0%
                   $109,677   $89,499   22.5%   $282,908  $210,717    34.3%

Gross margin is presented by SPPC in order to provide information by segment that management believes aids the reader in determining how profitable the electric and gas businesses are at the most fundamental level. Gross margin 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.

SOURCE: Sierra Pacific Resources

CONTACT: Analyst, Vicki Erickson, +1-775-834-5646, or Media, Karl
Walquist, +1-775-834-3891, both of Sierra Pacific Resources

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

Web site: http://w.on24.com/event/9602/r.htm

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