Nevada Power
Contact: Andrea Smith
Phone: (702) 367-5683

For Immediate Release

Company Also Signs Short-Term Agreement for Summer

Las Vegas, Nev. -- Nevada Power Company, a subsidiary of Sierra Pacific Resources, (NYSE: SRP), has filed with the Public Utilities Commission of Nevada (PUCN) an amendment to its resource plan seeking approval for several long-term energy supply contracts.

As a result of a competitive acquisition process, the company has entered into long-term purchase agreements with three companies --Panda Gila River LP, Calpine Energy Services and Mirant Americas Energy Marketing LP.

"Long-term contracts help provide protection against volatility in the power markets and these agreements are part of our plan to ensure future price stability while providing safe and reliable service to our customers in southern Nevada," said Pat Shalmy, president of Nevada Power.

The agreement with Panda Gila River LP provides 200 megawatts of power to be delivered from Gila River Power Station in Gila Bend, Arizona, during the summer months of 2003, 2004 and 2005. Panda Gila River LP is a joint venture between TECO Power Services Corporation and Panda Energy International, Inc. Currently under construction, the 2,145- megawatt facility will come on line in four phases, starting in the spring.

Calpine Energy Services (CES) ), a wholly-owned subsidiary of Calpine Corporation, has agreed to deliver 100 MW of energy between the hours of 9 a.m. and midnight and 50 MW of energy from 1 a.m. to 8 a.m., seven days a week from June 1, 2003 through May 31, 2006. Energy will be delivered from Calpine's South Point Energy Center.

The arrangement with Mirant involves three separate agreements under which Mirant will provide a total of 325 MW of capacity and energy to Nevada Power. Each agreement identifies specific delivery dates ranging from May of this year and continuing through April of 2008. A majority of the energy (225 MW), will be delivered from the APEX facility located in Las Vegas.

Additional terms of the agreements were not disclosed. Contracts longer than three years are subject to PUCN approval.

In a separate development, Nevada Power also signed an agreement with Reliant Energy Services for a total of 400 MW to be delivered this summer only. Because this is a short-term contract, it is not subject to advance approval by the PUCN.

Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership and several unregulated energy services companies.