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

For Immediate Release

Reno, Nev. -- Sierra Pacific Power Company announced today that its wholly-owned subsidiary, Sierra Pacific Power Capital Trust I, will redeem all of its outstanding 8.60% Trust Originated Preferred Securities, CUSIP No. 826433203 (the"Preferred Securities"), on Nov. 29, 2001 (the"Redemption Date"). On Nov. 6, 2001, there were $48,500,000 of preferred securities outstanding.

On the redemption date, each preferred security will be redeemed at a price of $25, together with accrued and unpaid distributions as of the redemption date. On and after the redemption date, distributions on the preferred securities will no longer accrue, and all rights of the holders of such preferred securities, except the right to receive the redemption price plus distributions accrued to the redemption date, will cease.

On Oct. 28, 2001, a notice of redemption was sent to the registered holders of the preferred securities, who must present and surrender their preferred securities at the offices of The Bank of New York, as institutional trustee, at the applicable address below, in order to receive payment of the redemption price for the preferred securities:

By Mail:
The Bank of New York
20 Broad Street
New York, NY 10286
Attn: Bond Redemption Unit

By Hand:
The Bank of New York
20 Broad Street
New York, NY 10286
Attn: Bond Redemption Unit

Headquartered in Reno, Nev., Sierra Pacific Power Company is 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. Sierra Pacific Power Company is a wholly owned subsidiary of Sierra Pacific Resources (NYSE:SRP).