Sierra Pacific Power Company
Contact: Faye I. Andersen
Phone: (775) 834-4822

For Immediate Release

Sierra Pacific Power Company today filed a General Rate Case with the Public Utilities Commission of Nevada (PUCN), it's first since 1992 . The filing was in response to Assembly Bill 369 (AB369), passed by the 2001 Nevada Legislature. It is the first of a two phase process required by the legislation to conduct a thorough review of the utility's finances, expenditures and fuel and electric power purchases made on behalf of its customers.

The filing requests an overall 4 percent increase for all customer classes, but would result in a 2.5 percent decrease for the typical residential customer using 715 kilowatt hours of electricity, or $2 per month. The total amount of the request is $28 million.

The second phase of this process will begin on February 1, 2002, when the company files a Deferred Energy Case with the PUCN. Following a six month review and approval by the PUCN, customer rates are expected to change on June 1, 2002.

In Phase One, the General Rate Case, the PUCN will closely examine Sierra Pacific's operating and maintenance expenses, its finances and nearly $240 million in capital expenditures the company has made on new facilities to serve customers.

In Phase Two, Sierra Pacific will make a Deferred Energy filing that seeks reimbursement for fuel to generate electricity and power purchased by the company on behalf of its customers since March 2001. The filing will also set new electric rates to match the on-going cost of providing electricity to customers.

"We know these are difficult times for everyone,"said Jeff Ceccarelli, President of Sierra Pacific Power Co."We have listened to customers, state policy-makers and community leaders and have worked hard to find realistic solutions to ease the impact of price increases on customers."

The two cases, the General Rate Case and the Deferred Energy Case, will be heard concurrently by the PUCN. Consumer sessions and formal hearings on the cases will be scheduled in the next few months.

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