News Releases

Oregon Regulators OK Sierra Pacific Resources' Acquisition of Portland General Electric

RENO, Nev.
Oct 30, 2000

Sierra Pacific Resources' (NYSE: SRP) application to acquire Portland General Electric (PGE) was approved today the Oregon Public Utility Commission (OPUC). The Commission approved a Sept. 1 settlement agreement, saying that the transaction was in the public interest.

"We appreciate this outcome and wish to thank all of the parties for their diligent work to make today's approval a reality," said Sierra Pacific Resources Chairman, President and Chief Executive Officer Walter M. Higgins. "PGE is one of the premier electric utilities in the West and this approval moves us one step closer to the merging of our two companies."

PGE serves approximately 720,000 electric customers in the Portland-Salem region of northwest Oregon.

"This is a very important milestone in our effort to bring PGE and Sierra Pacific together and obviously, we're very pleased," said Peggy Fowler, president and chief executive officer of PGE. "The ultimate winners are our Oregon customers. The agreement assures they can continue to receive the same level of outstanding service that they have come to expect from PGE."

The agreement calls for a six-year price freeze for PGE customers and a $95 million credit for Oregon consumers. The "acquisition credit" will be shown on monthly power bills as soon as the transaction is complete and will continue through Sept. 30, 2007. PGE will retain its ability to adjust rates to reflect changes in the prices for wholesale electricity and fuel purchased to operate its power plants.

"We still have additional approvals to obtain, but the OPUC approval is a significant step," said Higgins. "We must still obtain approval from the Federal Energy Regulatory Commission and the Securities and Exchange Commission. We're working toward that and anticipate closing the transaction early next year."

The U.S. Department of Justice and the Federal Trade Commission have already approved the transaction.

Headquartered in Reno, Nev., Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Co., the electric utility for southern Nevada, and Sierra Pacific Power Co., the electric utility for most of northern Nevada and the Lake Tahoe area of California, and a natural gas and water distributor in the Reno-Sparks area. Other subsidiaries include the Tuscarora Gas Pipeline Co., which owns 50 percent interest in an interstate natural gas transmission partnership and Sierra Pacific Communications, a telecommunications company.

SOURCE: Sierra Pacific Resources

Contact: analysts, Rich Atkinson, 775-834-4358, or media, Karl Walquist,
775-834-3891, both of Sierra Pacific Resources