Sierra Pacific Power Company
Contact: Richard Atkinson
Phone: (775)834-4358

For Immediate Release

Sierra Pacific Power Company, the staff of the Public Service Commission of Nevada (PSCN) and the Office of Consumer Advocate, submitted a stipulated proposal to the PSCN calling for a $13 million refund to Nevada electric customers and a decrease of $7.1 million in electric prices, followed by a freeze in northern Nevada electric, natural gas, fuel and purchased power prices to January 2000.

In addition, the stipulated proposal calls for a 50/50 sharing between shareholders and ratepayers of all earnings in each of the gas and electric divisions above 12% return on equity, and an opportunity, subject to certain conditions, to apply any such excess to buying down or buying out of long-term fuel and purchased power contracts currently in place.

The PSCN will examine the proposal at a hearing on Jan. 16, 1997 and is expected to issue a ruling or order concerning it at a PSCN agenda hearing on Feb. 6, 1997.

Reno-based Sierra Pacific Power Co. is an electric, natural gas and water utility subsidiary of Sierra Pacific Resources (NYSE: SRP).