News Releases

Sierra Pacific Power Company Makes Annual Purchased Gas Adjustment Filing

May 13, 2004

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

For Immediate Release

Sierra Pacific Power Company made its annual mandatory Purchased Gas Adjustment (PGA) filing today with the Public Utilities Commission of Nevada (PUCN), requesting a $7 million increase. For the typical residential customer it means a 5.3 percent rise in rates, or about $3 per month.

The company is required to make an annual PGA filing, which does not include any profit or operating costs for the company, but only reflects 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 time, based on actual costs.

"The prices for all forms of fuel and energy, including the price of natural gas we buy for our customers, continued to rise this year and prices are predicted to stay high throughout this summer into next winter," said Mary Simmons, vice president of Rates and Regulation for Sierra Pacific Power Company."We're requesting to recover the costs we've already spent for our customers, and to adjust our rates to a more realistic level, compared to current market prices."

Simmons pointed out that the company's last two PGA filings resulted in a combined total of 6 percent in decreases during 2003. The last decrease of $4 million, or 3 percent, took effect November 1, 2003. Customers previously had received an additional $4 million, or 3 percent decrease in rates on January 1, 2003.

Today's PGA filing covers increases in the cost of natural gas from April 2003 through March 2004. The filing also includes the price of natural gas for the next year, based on anticipated future wholesale prices. Based on usage of 57 therms of natural gas per month, the average residential customer's bill could increase 5.3 percent from $57.09 to $60.14.

The PUCN will schedule hearings and review the company's filing. A decision by the PUCN is expected within 180 days, or sometime in the fall of 2004.

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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