News Releases

Sierra Pacific Resources Reports Increase in Quarterly Earnings

Apr 29, 1997

Sierra Pacific Power Company
Contact: Rich Atkinson, Analyst Contact; Karl Walquist, Media Contact
Phone: Atkinson, (775)834-4358; Walquist, (775)834-3891

For Immediate Release

Sierra Pacific Resources (NYSE: SRP) today reported net income of $20.8 million for common stock for the quarter ended March 31, 1997, an increase of 17 percent compared to the same quarter in 1996. Per share earnings for the quarter were 68 cents, a 15 percent increase from the 59 cents reported for the same quarter last year. Revenues of $173.3 million for the quarter were 6 percent higher compared to the first quarter of 1996 due to continued strong customer growth, an increase in natural gas and electric sales, and cost management.

The availability of low cost natural gas supplies from the Tuscarora natural gas pipeline to fuel Sierra Pacific?s Tracy Power Plant contributed to the earnings growth. Also contributing to earnings growth were capital expenditures, primarily those associated with the Alturas Intertie Project, which impacted the allowance for funds used during construction. Operating expenses for the quarter included a one-time charge of $2 million for repairs after the flood in January 1997.

"Northern Nevada continues to attract new businesses and remains among the fastest growing regions in the nation," said Mark Ruelle, senior vice president and chief financial officer of Sierra Pacific."Our goal is to turn this growth into additional revenues, then manage our costs to grow earnings."

Headquartered in Reno, Nev., Sierra Pacific Resources is a utility holding company whose principal subsidiary is Sierra Pacific Power Co., the electric utility for most of northern Nevada and the Lake Tahoe area of California, and the natural gas and water distributor for the Reno-Sparks area. Other subsidiaries include the Tuscarora Gas Pipeline Co., which owns 50 percent interest in an interstate natural gas transmission partnership, Lands of Sierra, and e·three, an energy services company.