Sierra Pacific Resources. (NYSE: SRP) announced today that it has commenced a tender offer for all $300 million in aggregate principal amount of the Company's outstanding 8 3/4% Notes due 2005 (CUSIP No. 826428AC8) (the "Notes"). The tender offer is scheduled to expire at midnight, New York City time, on Friday, April 2, 2004, unless extended or earlier terminated (the "Expiration Date"). Holders of Notes who tender their Notes on or prior to 5:00 p.m., New York City time, on Monday, March 15, 2004, unless extended or earlier terminated (the "Early Tender Date"), will receive the Total Consideration of 107.225% of the principal amount of the Notes validly tendered (as described below). Holders who tender their Notes after 5:00 p.m., New York City time, on the Early Tender Date but prior to midnight, New York City time, on the Expiration Date, will receive 104.225% of the principal amount of the Notes validly tendered (the "Tender Offer Consideration"). The Total Consideration is the sum of the Tender Offer Consideration and a premium of 3.0% paid to each holder of the Notes that validly tenders on or prior to the Early Tender Date. In each case, holders who validly tender their Notes shall receive accrued and unpaid interest up to, but not including, the applicable payment date.

The Company intends to finance the tender offer with the net proceeds from a debt financing. The Company's obligation to accept for purchase and to pay for the Notes validly tendered in the tender offer are conditioned on, among other things, the receipt by the Company before midnight, New York City time, on the Expiration Date of net proceeds from a new offering of securities by the Company, on terms and conditions satisfactory to the Company, sufficient to pay the Total Consideration or Tender Offer Consideration, as applicable.

This press release does not constitute an offer to buy or the solicitation of an offer to sell any of the Notes, described above. The tender offer is being made pursuant an Offer to Purchase and related documents. The Company has retained Lehman Brothers Inc. and Merrill Lynch & Co. to serve as the Lead Dealer Managers for the tender offer and Morrow & Company, Inc. to serve as the Information Agent. Requests for documents may be directed to Morrow & Company, Inc. by telephone at 800/654-2468 or 212/754-8000. Questions regarding the tender offer may be directed to Lehman Brothers Inc. at 800/438-3242 or 212/528-7581, Attention: Liability Management Group or to Merrill Lynch & Co. at 800/654-8637 or 212/449-4914, Attention: Liability Management Group.

Headquartered in Nevada, the Company 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.

This press release contains forward-looking statements regarding the future performance of the Company 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 the Company, these risks and uncertainties include, but are not limited to, the Company's ability to receive dividends from its subsidiaries in the near future, the financial performance of the Company's subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company, and the Company's ability to access the capital markets to refinance upcoming debt maturities and for general corporate purposes. 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, adverse decisions in pending or future litigation, their ability to access the capital markets to refinance debt and for general corporate purposes, their ability to purchase sufficient power to meet their power demands, whether terminated power suppliers will be successful in pursuing claims against Nevada Power Company and Sierra Pacific Power Company for liquidated damages under their terminated power contracts and weather conditions during the summer months of 2004 and beyond. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company, Nevada Power Company and Sierra Pacific Power Company are contained in their Annual Report 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.

SOURCE: Sierra Pacific Resources

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