News Releases

Nevada Power Announces Private Offering of Its General and Refunding Mortgage Notes, Series L, Due 2015

Nov 9, 2004

Nevada Power Company, a subsidiary of Sierra Pacific Resources (NYSE: SRP), today announced that it will privately offer $250 million principal amount of its General and Refunding Mortgage Notes, Series L, due 2015. The sale of the notes is expected to be consummated during the next week.

Nevada Power Company plans to use the proceeds from the sale of the notes (i) to repay $150 million outstanding under its $350 million revolving credit facility with Union Bank of California, N.A., which amount was borrowed to finance a portion of the purchase price for the Lenzie Generating Station, (ii) to pay fees, costs, expenses and capital expenditures incurred in connection with the acquisition and the construction of the Lenzie Generating Station and (iii) for general corporate purposes. The notes will be secured by the lien of Nevada Power Company's General and Refunding Mortgage Indenture, which constitutes a lien on substantially all of the Company's real property and tangible personal property located in the State of Nevada. The offering will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the United States in compliance with Regulation S under the Securities Act. The notes will not be registered under the Securities Act and may not be offered or sold by holders thereof without registration unless an exemption from such registration is available. This press release does not constitute an offer to sell these notes, nor a solicitation for an offer to purchase these notes, nor is it a solicitation of any proxy or consent for any purpose.

Nevada Power Company is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electric energy in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson, Searchlight, Laughlin and their adjoining areas. The Company also provides electricity to Nellis Air Force Base, the Department of Energy at Mercury and Jackass Flats at the Nevada Test Site. Nevada Power Company provides electricity to approximately 710,000 residential and business customers in a 4,500 square mile service area.

This press release contains 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. If we are unable to consummate the offering of the notes in a timely manner, we may be required to delay construction of certain capital projects including, but not limited to, construction of the Lenzie Generating Station. Other risks and uncertainties include, but are not limited to, unfavorable rulings in the Company's future rate cases, adverse decisions in pending or future litigation and the Company's ability to purchase sufficient power to meet its power demands. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in its Annual Report on Form 10-K for the year ended December 31, 2003 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2004 filed with the SEC. 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: Nevada Power Company

CONTACT: Analysts, Vicki Erickson, +1-775-834-5646, or Media, Karl
Walquist, +1-775-834-3891, or Andrea Smith, +1-702-367-5683, all for Nevada
Power Company