News Releases

Sierra Pacific Resources Announces Successful Remarketing of Its Senior Notes

RENO, Nev.
Jun 14, 2005

Sierra Pacific Resources (NYSE: SRP) announced today that they have successfully remarketed Sierra Pacific Resources' 7.93% Senior Notes due 2007 (the "Senior Notes"). On May 24, 2005, Sierra Pacific Resources issued $99,142,000 aggregate principal amount of the Senior Notes in connection with its issuance of new Premium Income Equity Securities ("PIES") in the form of Corporate PIES (NYSE: SRV). Each New PIES consists of an unsecured Senior Note and a forward purchase contract to purchase Sierra Pacific Resources' common stock on the settlement date of November 15, 2005. In connection with the remarketing, the terms of the Senior Notes were reset as described below (the "Remarketed Senior Notes"). The entire $99,142,000 aggregate principal amount of the Senior Notes were successfully remarketed. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Lehman Brothers Inc. were the remarketing agents for the transaction.

The Remarketed Senior Notes will mature on June 15, 2012. The interest rate on the Remarketed Senior Notes will be reset to 7.803% per annum, effective on and after June 14, 2005. Interest on the Remarketed Senior Notes is payable semi-annually in arrears on June 15 and December 15 of each year, with the first interest payment to be made on December 15, 2005.

The Remarketed Senior Notes will be traded on the New York Stock Exchange under the trading symbol "SRP12."

The proceeds of the remarketing of the Senior Notes were used to purchase treasury securities and to pay the fee of the remarketing agents. The treasury securities will serve as substitute collateral for the Senior Notes component of the PIES to secure holders' obligations under the related forward purchase contracts. The proceeds of the treasury securities upon or after maturity will be used to provide the consideration necessary to fulfill holders' obligations under the related forward purchase contracts on November 15, 2005 and to pay the aggregate amount of remaining interest payments to the holders of the Corporate PIES through November 15, 2005.

Additional information regarding the remarketing and the Remarketed Senior Notes can be found in the Remarketing Prospectus Supplement, dated June 9, 2005, filed pursuant to Rule 424(b)(4) on June 10, 2005 (File No. 333-123835) with the Securities and Exchange Commission (the "SEC"). Copies of the Remarketing Prospectus Supplement can be obtained free of charge on the website maintained by the SEC at

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.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, the securities of Sierra Pacific Resources, nor shall there be any offer, solicitation or sale of any securities of Sierra Pacific Resources in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities law of any such state or jurisdiction.

Certain matters in this press release are forward-looking statements. Cautionary statements regarding the future performance of Sierra Pacific Resources are contained in its Quarterly Report on Form 10- Q for the period ended March 31, 2005, filed with the SEC.

SOURCE: Sierra Pacific Resources

CONTACT: Media, Andrea Smith, +1-702-367-5843, or Analysts, Britta
Carlson, +1-702-367-5624, both of Sierra Pacific Resources

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