Sierra Pacific Power Company
Contact: Robert Sagan/Karl Walquist
Phone: (775)834-4345

For Immediate Release

Sierra Pacific Power Company (SPPCo.), a Reno, Nevada-based electric, natural gas and water utility, and the University of Nevada, Reno, have signed a 10-year contract that establishes SPPCo. as the exclusive electric and natural gas provider for the university. The deal is worth an estimated $4.5 million annually.

In return, Sierra Pacific is financing the cost of retrofitting 11 buildings on the university's campus with energy efficient heating, ventilating, air conditioning and lighting equipment. This project marks the eighth such major energy retrofit on campus since 1992 using the utility's energy conservation programs.

"We've enjoyed a long-standing relationship with the University of Nevada," said Tom Parker, Sierra Pacific's vice president for Energy Services,"and we're very pleased that we can help the school improve its infrastructure while at the same time saving it a considerable sum of money."

When the latest campus retrofit program is completed in early 1997, the university will be saving more than $1 million annually in its energy costs.

Sierra Pacific Power, which is a subsidiary of Sierra Pacific Resources (NYSE: SRP), has been offering major customers custom-designed services and programs that it hopes will encourage brand loyalty.