News Releases

Sierra Pacific Resources Explores Potential for Sale of Gas Transmission Business

RENO, Nev.
Jul 10, 2006

Sierra Pacific Resources (NYSE: SRP) today announced plans to explore potential opportunities for the sale of its 50 percent interest in the Tuscarora Gas Transmission Company.

Sierra Pacific Resources serves as the operator in a 50-50 partnership with TransCanada Pipelines, Ltd., in a 240-mile natural gas pipeline from Malin, Oregon, to Reno, Nevada. The Tuscarora gas pipeline connects to a hub of western natural gas pipelines, providing access to Canadian natural gas reserves located in the Western Canadian Sedimentary Basin, one of the largest natural gas reserve basins in North America.

The company is being advised regarding the potential sale by Lazard Freres & Co. LLC. The process is expected to be completed by year-end 2006.

Sierra Pacific said it decided to sell its interest in Tuscarora in order to concentrate more fully on its rapidly growing utility businesses. These include Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California, and Nevada Power Company, the electric utility for most of southern Nevada. The two companies serve a total of approximately 1.3 million customers. Sierra Pacific Power also distributes natural gas to customers in the Reno-Sparks area of northern Nevada.

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. 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 Annual Report on Form 10-K for the year ended December 31, 2005, and the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2006, both 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.

SOURCE: Sierra Pacific Resources

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

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