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

For Immediate Release

Sierra Pacific Power Co.'s 1998-2017 Electric Resource Plan has been unconditionally approved by the Public Utilities Commission of Nevada (PUCN).

Major elements of the plan include the 175-mile, 345-kilovolt (345-kV) Falcon-Gonder transmission project, which will run from south of Sierra Pacific's Valmy generating plant to the Gonder substation near Ely, Nev. The project will add 259 megawatts of new import capability to the company's control area. The line is expected to be in service by late 2001.

Another major element of the Sierra Pacific Resource Plan is the 230-kV"Frenchman Tap" project, which will interconnect the utility's 230-kV line to its Fort Churchill generating plant, with the Oxbow-Southern California Edison 230-kV line near Bishop, Calif. The project will significantly increase import capability at a low cost per kilowatt-hour, and provide new power purchase and sales opportunities.

The plan provides for an additional 30 megawatts of import capability that would be available by the summer of 2000. The project could provide up to 100 megawatts in import capability from Southern California once the Falcon-Gonder line is in service.

The Commission also found that the company's load forecast and fuel forecasts were"reasonable."

Sierra Pacific officials expressed"complete satisfaction" with the PUCN order, which will allow the utility to continue its high standards of reliable service to one of the fastest growth areas in the country.

Projects recommended in Electric Resource Plan must receive final confirmation by the Sierra Pacific board of directors.