News Releases

Primary Energy, Sierra Pacific to Offer Energy Solutions in Nevada

Dec 22, 1997

Sierra Pacific Power Company
Contact: Kris Falzone, NIPSCO Industries, Karl Walquist/Robert Sagan, Sierra Pacific
Phone: (219)647-6203 or (775)834-4345

For Immediate Release

Primary Energy, Inc., a subsidiary of NIPSCO Industries, Inc. (NYSE: NI), and Sierra Pacific Resources (NYSE: SRP) are forming an alliance to market cogeneration* projects to energy-intensive businesses in Nevada.

"We are very pleased to be associated with Sierra Pacific Resources, a leading energy company," said Joe Turner, president of Primary Energy."All of us look forward to significant growth for this new venture in the state of Nevada."

Industries in Nevada that are candidates for this growing energy business include hotel-casinos, mining and manufacturing. Projects will be independently financed by the alliance.

"We?re excited to be offering additional energy solutions to Nevada companies, and to be aligned with one of the nation?s premier cogeneration companies," said Walter M. Higgins, chairman, president and chief executive officer of Sierra Pacific. Besides investing capital, Sierra Pacific will be providing marketing support for Primary Energy in Nevada.

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 in 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, Inc., a real estate management company; and e*three, an energy services company. (Detailed information about Sierra Pacific is available on the Internet at

Primary Energy develops and manages energy projects for large, energy-intensive complexes, providing competitive responses to customers? energy needs. Currently, Primary Energy has three projects in operation providing a total of 298 megawatts of electricity to major Midwest steel producers; a coal pulverization joint venture with Inland Steel; and an 87-megawatt cogeneration plant and flue gas desulfurization unit under construction at Inland Steel in conjunction with an advanced coke-making facility. Primary Energy has a close working alliance with Fluor Daniel Power to provide design, engineering and construction services for Primary Energy?s varied projects.

NIPSCO is an energy/utility-based holding company that has both regulated and non-regulated subsidiaries. Its regulated subsidiaries provide natural gas and electricity in northern Indiana, water in central Indiana, and interstate natural gas pipeline services.

The company?s non-regulated businesses are primarily energy or utility focused. NI recently announced it will acquire Bay State Gas Company, one of the largest natural gas utilities in New England, and a marketer of energy products and services. Information about NI and its subsidiaries is available via the Internet at

*Cogeneration is the sequential production of electricity and thermal energy from the same fuel source. By producing two useful forms of energy from one fuel source, cogeneration results in significant fuel savings. The electricity may be used to meet the facility?s own electrical demand or sold to a utility.