News Releases

Nevada Power Completes Auction of Flamingo Road Properties

Aug 11, 2003

Nevada Power
Contact: Sonya Headen
Phone: (702) 367-5222

For Immediate Release

Las Vegas, NV -- Nevada Power Company today sold, in a public auction, six parcels of land on Flamingo Rd. to one buyer for a total of $24.8 million.

Chicago-based Newcastle Properties L.L.C. was the winning bidder of the"Flamingo Corridor Properties" which comprise six blocks located on the north side of Flamingo Road between Koval Lane and Maryland Parkway in close proximity to the Las Vegas Strip. The properties were appraised at $24.3 million. Closing of the sale is expected in mid-September.

Victor Peña, senior vice president and chief administrative officer of Sierra Pacific Resources, Nevada Power's parent company, said the net gain from the land sale will flow back to customers as part of future rate cases.

Peña, said the decision to sell the properties was prompted by unsolicited outside interest and the fact that the land is not needed for future electrical facilities. As part of the sale, Nevada Power Company retained easements for existing electrical facilities.

Nevada Power Company said the sale is beneficial in several respects: (1) it receives monetary value for an asset not part of the company's core business; (2) the realization of appreciated value on a fixed asset; and (3) sale of non-core land which is consistent with the company's strategic direction.