News Releases

Sierra Pacific Resources Reports Third Quarter Earnings

Nov 5, 2001

Sierra Pacific Resources
Contact: Analyst Contacts:
Barbara Doble 702-367-5647
Rich Atkinson 775-834-5640
Media Contact:
Karl Walquist 775-834-3891
Phone: see above

For Immediate Release

Las Vegas, Nev. -- Sierra Pacific Resources (SRP: NYSE) today reported consolidated third quarter earnings of 89 cents per share, compared with a 25 cent per share loss for the same period last year. The third quarter results represent an important initial sign of recovery from the severe financial pressures faced by the company over the last year due to high fuel and purchased power costs.

Earnings recovery was aided by a Nevada law (Assembly Bill 369) passed earlier this year that ensures that the company's two utility operationsÂ- Nevada Power and Sierra Pacific Power Â- can recover costs for power and fuel that they purchased to meet customer needs. This same law allows the state's public utilities commission to spread those costs over three years in new rates, thus reducing the volatility of customer rates.

Nevada Power reported quarterly earnings contributions of $78.8 million, or 87 cents per share contribution, compared to a loss of $8.8 million or 11 cents per share contribution for the third quarter of 2000. Sierra Pacific Power's earnings contributions were $11.6 million or 13 cents per share contribution, compared to a loss of $1.5 million or 2 cents per share contribution during the same quarter last year.

Year-to-date consolidated earnings for Sierra Pacific Resources amount to $51.0 million or 62 cents per share, compared to a loss for the same period a year ago of $21.6 million or 27 cents per share. The year-to-date earnings reflect the losses earlier this year from unrecovered power and fuel costs before the Nevada deferred energy law took effect. The law assuring recovery has allowed the company to finance its power and fuel purchases with debt, effectively extending a loan to the utilities'customers. The current balance of deferred wholesale power and fuel costs as of Sept. 30 are $929 million for Nevada Power and $177 million (for electric only) at Sierra Pacific Power.

Nevada Power expects to file with the Public Utilities Commission of Nevada by early December to recover deferred energy costs; Sierra Pacific Power will file for recovery during the first quarter of 2002. On Monday, November 5th, Sierra Pacific Power received a final order from the Public Utilities Commission of Nevada (PUCN) that allows full recovery of recent wholesale gas purchases, with the recovery spread over a three-year period.

Sierra Pacific Resources executives will discuss the third quarter financial results during a live webcast today, Nov. 6, at 7 a.m. Pacific standard time. Interested parties can access the A recording of the call will be archived at the same website and who would rather listen to a recording of the webcast by telephone can call 1-800-759-0726.

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 Sierra Pacific Communications, a telecommunications company.

This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2000, and its Form 10-Q for the quarter ended September 30, 2001. These reports have been filed with the Securities and Exchange Commission and are available without charge through the EDGAR system at its Web site,

Sierra Pacific Resources Financial Highlights
(In thousands, except for per share amount)

Third Quarter 2001
Operating Expenses1,849,710849,1001,300,729537,769545,152310,640
Net Income (Loss) Available for Common*80,409(19,548)78,751(8,782)11,606(1,557)
Net Income (Loss) Per Share$0.89$(0.25)----
Net Income (Loss) Contribution Per Share--$0.87$(0.11)$0.13$(0.02)
SRP Weighted Average Shares Outstanding90,30378,44690,30378,44690,30378,446

Year to Date September 30, 2001

Operating Expenses3,695,2901,643,7242,442,824983,6601,233,761653,571
Net Income (Loss) Available For Common*50,965(21,561)56,459(18,617)36,57218,465
Net Income (Loss) Per Share$0.62$(0.27)----
Net Income (Loss) Contribution Per Share--$0.68$ (0.24)$0.44$0.24
SRP Weighted Average Shares Outstanding82,42378,42882,42378,42882,42378,428
*) Does not include Sierra Pacific Equity in Earnings (Losses) for NPC