News Releases

Sierra Pacific Filing With Nevada PUC Proposes Natural Gas Rate Decrease

May 14, 2003

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

For Immediate Release

Sierra Pacific Power Company today filed with the Public Utilities Commission of Nevada (PUCN) to lower the price of natural gas by $5.8 million or 5% If the filing is approved, typical residential customers using 52 therms of natural gas would realize an average decrease in rates of $2.40 per month.

"This filing is a decrease for our customers,"said Sierra Pacific Power President Jeff Ceccarelli."It reflects more stability in the natural gas and energy markets, which is good news for our customers."Sierra Pacific's last natural gas rate change was also a decrease of approximately 3%, which went into effect January 1, 2003.

Ceccarelli attributed the decrease request to lower prices in the natural gas market this past year and the company is passing along the savings to customers.

The filing is part of a mandatory annual filing made by the company, known as a Purchased Gas Adjustment (PGA). PGA filings do not include any profit or operating costs for the company, but only reflect the price of natural gas the company buys on behalf of its customers. Nevada regulations require utilities to purchase gas on behalf of their customers, keep track of the expenses, and then seek reimbursement over a time, based on actual costs.

The proposed decrease covers the cost of natural gas from May 2002 through March 2003. This filing also includes the price of natural gas for the next year, based on anticipated future wholesale prices.

The PUCN will schedule hearings and review the company's filing. A decision by the PUCN would be expected within 180 days, or around mid November.

Sierra Pacific Power Company serves approximately 125,000 natural gas customers in the Reno-Sparks metropolitan area. Sierra Pacific Power Company is a wholly-owned subsidiary of Sierra Pacific Resources (NYSE:SRP).

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