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

For Immediate Release

Las Vegas, NV July 10, 2001 -- Nevada Power Company has filed its 20-year Electric 2001 Resource Plan with the Public Utilities Commission of Nevada (PUCN). The plan outlines how the utility intends to meet the long-term electrical needs of Nevada customers.

In testimony submitted to the PUCN, Steve Oldham, Sierra Pacific Resources'senior vice president of Corporate Development and Strategic Planning, explained how recent events in regional power markets, legislative changes, and other Nevada initiatives concerning regulation, plant divestiture, competition, customer choice, and renewable energy have shaped the Resource Plan's development.

Support and Approval Needed
In his testimony, Oldham also touched on key elements of the plan for which Nevada Power Company will need full Commission support and timely approval. Included among those elements are:

• Approval of the load forecast necessary to ensure adequate generation and transmission capability to service native load customers.
  
• Approval of Power Purchase Contracts to allow the appropriate level of flexibility necessary to provide maximum value and lowest cost to our customers.
  
• Approval of the Centennial Projects, a new 500 kV transmission network to move power from proposed local generating facilities to Nevada Power customers and to provide a path to regional markets.
  
• Approval of the Company's Portfolio of Supply, a product of the Company's evolving risk management strategy.
  
• Approval of the form of the Master Collateral&Remedies Agreement to protect the financial interests of counter-parties who are buyers and sellers of energy within our market.
  

Renewable Energy Levels Required
With respect to renewable energy (geothermal, solar, wind, etc.), the 2001 Resource Plan will seek to use a competitive process with qualified renewable energy developers to secure future supplies of renewables. Recently passed Senate Bill 372 requires that 5 percent of Nevada's energy mix will be provided by renewable energy sources by 2003. That number increases to 15 percent by 2013.

PUCN hearings on Nevada Power's 2001 Electric Resource Plan are expected to begin later this summer.

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