Sierra Pacific Resources
Contact: Karl Walquist
Phone: (775)-834-3891

For Immediate Release

Las Vegas, Nev.Â- Sierra Pacific Resources (NYSE: SRP) today reported a consolidated net loss of $16.5 million, or $0.15 per share, for the first quarter of 2003, compared with a net loss of $303.9 million, or $2.98 per share, in the same quarter of 2002.

The 2003 first quarter loss resulted from higher interest costs at the holding company, as well as higher interest costs and lower energy sales at the company's utility subsidiaries, Nevada Power Company and Sierra Pacific Power Company. The 2002 first quarter loss reflected approximately $465 million in pre-tax write-offs related to rate case disallowances.

"We remain totally focused on restoring the company's financial health, but this cannot be achieved rapidly as we continue to face financial hurdles and related matters stemming from last year's power cost disallowances," said Chairman and Chief Executive Officer Walter M. Higgins."These challenges were seen quite clearly during the recent quarter as our lower credit ratings resulted in substantial interest cost increases. Nonetheless, our financial situation has improved significantly from a year ago as the result of actions we are continuing to take in improving operational efficiencies."

Nevada Power incurred a net loss of $15.2 million for the first quarter of 2003, and Sierra Pacific Power reported net income of $4.0 million.

Retail megawatt hour sales of electricity for Nevada Power fell 4.8 percent, compared with the same period last year, due to warmer-than-normal weather which reduced the number of heating degree days by 28.8 percent, compared with the first quarter of 2002. Interest charges on long-term debt for the quarter increased over the year-earlier period due primarily to the higher interest rate Nevada Power was required to pay in order to complete the issuance of $250 million in debt in October 2002.

Sierra Pacific Power's retail megawatt hour sales of electricity for the quarter also were down slightly compared with 2002 due to warmer-than-normal winter temperatures resulting in a 12.8 percent reduction in heating degree days compared to the same period a year earlier. For the same reason, retail decatherm sales of natural gas for Sierra Pacific's Reno-Sparks service area were down by 16.3 percent. Interest charges on long-term debt for Sierra Pacific Power for the first quarter increased over the same period in 2002, due primarily to the higher interest rate that Sierra Pacific Power was required to pay in order to complete the issuance of $100 million in term debt in October 2002.

On April 18, 2003, the Public Utilities Commission of Nevada (PUCN) completed public hearings on Nevada Power's application to recover $195.7 million in deferred-energy costs accumulated between October 1, 2001, and September 30, 2002. The PUCN's final decision on the case is expected on May 12. The application also requests an overall 5.3 percent reduction in rates, reflecting reduced wholesale energy costs. Interveners in the case have called for disallowances ranging from $108 million to $300 million of the total fuel and purchased power costs.

Also on May 12, hearings are scheduled to begin on Sierra Pacific Power's deferred-energy case, which seeks to recover $15.4 million in costs accumulated between December 1, 2002, and November 30, 2002. A ruling on the case is required before July 13, 2003.

Because of the PUCN's commencement of hearings, its pending rate case decision, and Sierra Pacific's annual meeting of shareholdersÂ- all of which are scheduled on Monday, May 12 Â- the company will hold a conference call later during the week of May 12. Details of the call will be announced in the near future.

Last month, Sierra Pacific Resources and Nevada Power filed suit in federal court in Las Vegas against several natural gas providers including El Paso Corporation, Sempra Energy and Dynegy Holdings for alleged restraint of trade, fraud, violation of Nevada's RICO Act and criminal and civil conspiracy. The suit, which seeks more than $600 million in compensatory, punitive and other damages, claims the defendants"planned and executed schemes designed to reduce or control supplies, drive up or control prices, eliminate competition, cause price instability, increase volatility in wholesale prices and defraud customers in the product market for delivered natural gas."

The company also filed a complaint last month in federal court against Merrill Lynch and Allegheny Energy Supply Company. The complaint alleges that the companies engaged in illegal activities, which resulted in the PUCN's March 2002 decision to disallow Nevada Power's recovery of $180 million in deferred energy costs. The company is seeking more than $850 million in actual and punitive damages.

A detailed explanation of Sierra Pacific's first quarter 2003 financial results is available in the company's Form 10-Q for the quarter ended March 31, 2003, which has been filed with the Securities and Exchange Commission and is available without charge through the EDGAR system at the SEC's website. The Form 10-Q report will also be posted on the Sierra Pacific Resources website,

www.sierrapacificresources.com

About Sierra Pacific Resources

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 a 50 percent interest in an interstate natural gas transmission partnership.

Forward-Looking Statements:
This press release contains forward-looking statements regarding the future performance of Sierra Pacific Resources and its subsidiaries, Nevada Power Company and Sierra Pacific Power Company, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. For Sierra Pacific Resources, these risks and uncertainties include, but are not limited to, Resources'ability to access the capital markets to refinance future debt maturities and for general corporate purposes, Resources'ability to receive dividends from its subsidiaries and the financial performance of the Company's subsidiaries, particularly Nevada Power Company and Sierra Pacific Power Company. For Nevada Power Company and Sierra Pacific Power Company, these risks and uncertainties include, but are not limited to, unfavorable rulings in their pending and future rate cases, their ability to access the capital markets to refinance debt and for general corporate purposes, their ability to purchase sufficient power to meet their power demands, whether terminated power suppliers will be successful in pursuing claims against Nevada Power and Sierra Pacific Power for liquidated damages under their terminated power contracts and weather conditions during the summer months of 2003 and beyond. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Resources, Nevada Power Company and Sierra Pacific Power Company are contained in their Quarterly Report on Form 10-Q for the quarter ended March 31, 2003, filed with the SEC. The Companies undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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