News Releases

Sierra Pacific and Enron Announce Purchase Agreement For Portland General Electric

Nov 7, 1999

Nevada Power
Contact: Faye Andersen / Investors:Rich Atkinson
Phone: (775)834-4822 / (775)834-4358

For Immediate Release

Reno, NV - Sierra Pacific Resources (NYSE: SRP) and Enron Corp. (NYSE: ENE) announced today that they have entered into a purchase and sale agreement for Enron's wholly owned electric utility subsidiary, Portland General Electric (PGE). Under terms of the agreement, Enron will sell PGE to Sierra Pacific for $2.1 billion, comprised of $2.02 billion in cash and the assumption of Enron's approximately $80 million merger payment obligation. Sierra Pacific will also assume $1.0 billion in PGE debt and preferred stock. The proposed transaction, which is subject to customary regulatory approvals, is expected to close in the second half of 2000.

"We're excited about this opportunity to transform our company by significantly expanding our scale and scope in this combination with PGE," said Michael Niggli, Sierra Pacific Resources'chairman and chief executive officer."Portland General is one of the premier electric utilities in the West and this transaction is an important step in fulfilling our previously stated goal of expanding our regulated utility businesses. We are looking forward to using our regulated industry expertise to enhance the value of PGE's businesses while continuing to provide safe, reliable electric service to customers. Moreover, the transaction will enable us to reinvest the proceeds from the planned divestiture of our Nevada generating assets."

"We have been very pleased with the performance of Portland General," said Kenneth L. Lay, Enron's chairman and chief executive officer."However, the rapidly evolving competitive electricity market allows us to deliver commodity services and risk management products to our customers without requiring the ownership of a regulated electric utility."

The combined company of Sierra Pacific Resources and Portland General Electric will have a total of more than $9 billion in assets and serve more than 1.7 million customers in three states.

Salomon Smith Barney acted as financial advisor and Skadden, Arps, Slate, Meagher&Flom LLP acted as legal counsel to Sierra Pacific Resources.

Enron is one of the world's leading electricity, natural gas and communications companies. The company, which owns approximately $34 billion in energy and communications assets, produces electricity and natural gas, develops, constructs and operates energy facilities worldwide, delivers physical commodities and financial and risk management services to customers around the world, and is developing an intelligent network platform to facilitate online business. Enron's Internet address is The stock is traded under the ticker symbol,"ENE."

PGE is an electric utility serving more than 700,000 retail customers in northwest Oregon.

Sierra Pacific Resources is a holding company whose principal subsidiaries are Sierra Pacific Power Company and Nevada Power Company. Combined, the two utilities serve 843,000 electric customers in Nevada and the Lake Tahoe area of California, along with 105,000 natural gas and 67,000 water customers in Reno and Sparks, Nevada. More information about the company can be found at

Contacts for Sierra Pacific Resources:

Media Contact:Faye I. Andersen (775) 834-4822 and

Investor Contact: Richard Atkinson (775) 834-4358

(This press release includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements reflect numerous assumptions, and involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are: electric load and customer growth; abnormal weather conditions; available sources and cost of fuel and generating capacity; the speed and degree to which competition enters the power generation, wholesale and retail sectors of the electric utility industry; state and federal regulatory initiatives that increase competition, threaten cost and investment recovery, and impact rate structures; the ability of the combined company to successfully reduce its cost structure; the economic climate and growth in the service territories of the company; economics generated by the transaction; interest costs and the other risks detailed from time to time in the company's SEC reports.)