News Releases

Sierra Pacific Decreases and Freezes Electric Prices; Customers to Receive Funds

Feb 5, 1997

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

For Immediate Release

RENO, NEV., February 6/PR Newswire -- The Nevada Public Service Commission (PSC) today approved an agreement between Sierra Pacific Power Co., the Office of Consumer Advocate and the staff of the PSC, to reduce Sierra Pacific's Nevada electric prices by $7.1 million, freeze northern Nevada's electric, natural gas and purchased power prices until the year 2000, and refund $13 million to Nevada electric customers. The agreement is the culmination of negotiations between the parties following Sierra Pacific's filing in September requesting to freeze prices and issue a refund to its Nevada electric customers. The approval today by the PSC means the decrease, freeze and refund are effective immediately.

"We've been working hard to streamline our work force, increase operating efficiencies and hold down costs," said Doug Ponn, executive director, Government and Regulatory Affairs for Sierra Pacific."Our hard work is paying off for customers in terms of reduced prices and a refund. Plus, we're extending our price freeze another three years, which means our customers will be seeing six years of stable electric prices in northern Nevada."

The decrease for Nevada electric customers means the average residential customer using 650 kilowatt hours of electricity will see a drop from $58.02 to $57.09 in each monthly bill. Residential customers will also see a $19.50 refund on their bills. Commercial customers will see refunds based upon their 1996 electric consumption.

According to Ponn, Sierra Pacific first froze its electric prices for customers in 1994. Electric prices were subsequently reduced in May 1995 and customers were given a refund in July 1995. With this new agreement, electric prices are frozen for another three years, bringing the price freeze to a total of six years.

As a result of all of these actions, in the year 2000, Sierra's electric customers will still be paying less for electricity than they did in 1993.

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