Sierra Pacific Resources (NYSE: SRP) announced today that it has signed a Power Purchase Agreement (PPA) with Nevada Geothermal Power Inc., to provide up to 35 megawatts of new renewable generating capacity for its utility subsidiaries, Nevada Power Company and Sierra Pacific Power Company.

The contract is for purchases over 20 years from Nevada Geothermal Power's planned Blue Mountain Project in Humboldt County, Nevada. The contract requires review and approval by the Public Utilities Commission of Nevada. The plant is expected to be completed in 2009.

Sierra Pacific Resources Executive for Renewable Energy Tom Fair welcomed the contract as another important step for the companies to diversify their energy sources and meet the state's goals for renewable energy. "Geothermal power is a clean and reliable source of power that will help meet the needs of our state's growing population," he said.

About Nevada Geothermal Power Inc.

Nevada Geothermal Power Inc. is a renewable energy company exploring and developing geothermal projects in the United States to provide electrical energy that is clean, efficient and sustainable. NGP is committed to the geothermal industry and currently owns a 100 percent leasehold interest in the Blue Mountain, Pumpernickel, Black Warrior projects in Nevada and the Crump Geyser Project in southern Oregon.

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 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, 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. These risks and uncertainties include, but are not limited to, Nevada Geothermal Power's ability to complete construction of the geothermal power plant by 2009 or at all, Nevada Power's and Sierra Pacific Power's ability to obtain required regulatory approvals for the agreement with Nevada Geothermal Power and Nevada Power's and Sierra Pacific Power's ability to meet their Nevada-mandated renewable requirement. 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 June 30, 2006, and their Annual Reports on Form 10-K for the year ended December 31, 2005, filed with the SEC. Sierra Pacific Resources, Nevada Power Company and Sierra Pacific Power Company 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.

SOURCE: Sierra Pacific Resources

CONTACT: Media, Faye I. Andersen, +1-775-834-4822, or Analyst, Britta
Carlson, +1-702-367-5624, both of Sierra Pacific Resources