Sierra Pacific Resources (NYSE: SRP) announced today that Tuscarora Gas Transmission Company plans to expand its pipeline system at a cost of approximately $60 million to meet the growing needs of natural gas customers in northern Nevada. A pipeline subsidiary of Sierra Pacific Resources holds a 50% interest in the Tuscarora Gas Transmission Company.

The proposed expansion consists of three compressor stations and a 14-mile pipeline extension that would extend the system from the Tracy Power Plant near Reno to Wadsworth, Nevada and will include an interconnect with the Paiute Pipeline. When constructed, capacity on Tuscarora's expanded pipeline system will increase from 125 million cubic feet per day to approximately 220 million cubic feet per day.

"The expansion of the Tuscarora Pipeline is a key ingredient to the continued economic prosperity of northern Nevada and will meet the growing natural gas needs of new and existing customers well into the future," said Greg Galbraith, director of marketing and transportation for Tuscarora Gas Transmission Company.

The expanded capacity will serve two new power generation facilities to be located near Tracy and Wadsworth, Nevada. Duke Energy proposes to construct a 540MW plant located near Wadsworth and Morgan Stanley is currently constructing the 360MW capable Naniwa Energy facility on a site located in the Tracy area. In addition, the expanded capacity will supplement the growing gas distribution needs of Sierra Pacific Power Company and the Southwest Gas Corporation who collectively distribute natural gas to all of northern Nevada and portions of northern California.

Tuscarora today filed an application for the proposed pipeline system expansion with the Federal Energy Regulatory Commission (FERC). Before construction begins, Tuscarora must receive approval from FERC and other governmental agencies. The company plans construction to begin in April 2002 with completion scheduled for late 2002.

The Tuscarora natural gas pipeline was constructed in 1995 in a partnership of Sierra Pacific Resources and TransCanada PipeLines Limited. The 229-mile pipeline stretches from Malin, Oregon, through northern California to Sierra Pacific Power Co.'s Tracy Power Station near Reno, Nevada.

This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources. 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, in addition to those discussed herein, all of the factors discussed in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2000 and its Form 10-Q for the quarter ended Dec. 31, 2000. These reports have been filed with the Securities and Exchange Commission and are available without charge through the EDGAR system at its Web site, http://www.sec.gov/.

SOURCE: Sierra Pacific Resources

Contact: Charlie Fletcher of Sierra Pacific Resources, 775-834-3959

Website: http://www.sierrapacific.com/