Sierra Pacific Resources
Contact: Faye I. Andersen
Phone: (775)-834-4822

For Immediate Release

Las Vegas, NV -- Sierra Pacific Resources (NYSE: SRP) today reported year-end&fourth quarter financial results for 2003. For the full year, the company incurred a consolidated loss applicable to common stock of $140.5 million, or $1.21 per common share, compared with a consolidated loss applicable to common stock of $307.5 million, or $3.01 per common share, in 2002.

"While our 2003 financial results are an improvement, we have much hard work ahead of us to restore the company's financial health and credit quality,"said Walt Higgins, chairman, president and chief executive officer of Sierra Pacific."The business strategies we are pursuing are producing positive results, but reversing the effects of the Western Energy Crisis is a difficult, time-consuming process. We continue to concentrate on being an excellent vertically-integrated electric utility."

The improvement in net financial results was driven by several factors, including more favorable results in the Nevada Power and Sierra Pacific Power deferred energy rate cases compared with the prior year, as well as continued strong customer growth. These were offset by unusual charges, higher interest costs and other items detailed in the 2003 Form 10-K, filed this morning with the Securities and Exchange Commission.

During 2003, Sierra Pacific Resources incurred a consolidated loss applicable to common stock of $140.5 million compared to a $307.5 million loss applicable to common stock for the year ended 2002. Sierra Pacific Resources'consolidated loss was primarily due to a number of charges including (before income taxes):

• An unrealized net loss of $46.1 million on the derivative instrument associated with the issuance of $300 million of convertible debt. This unrealized loss had no effect on cash flow;
• The write-off of approximately $91 million of disallowed deferred energy costs, excluding carrying charges (approximately $46 million by Nevada Power Company and approximately $45 million by Sierra Pacific Power Co.);
• Higher interest costs at Sierra Pacific Resources, Nevada Power Company and Sierra Pacific Power Company, including $52 million of interest charges recorded as a result of the Enron litigation (see Note 15 of"Notes to Financial Statements, Commitments and Contingencies, for further information);
• Losses by Sierra Pacific Resources subsidiaries due to the recognition of asset impairments and business disposals of $32.9 million and $9.6 million by Sierra Pacific Communications and e-three, respectively; and
• Higher operating expenses that included increased reserves for uncollectible accounts and costs associated with collections for Nevada Power Company and Sierra Pacific Power Company (see Other (Income) Expense analysis).

For the fourth quarter of 2003, Sierra Pacific Resources reported a consolidated net loss of $19.8 million, or $0.17 per common share, compared with a net loss of $39.5 million, or $0.39 per common share, a year earlier.

Webcast Scheduled for 7 a.m. PST Today

Senior management of Sierra Pacific Resources (SRP: NYSE) will review the company's year-end 2003 financial results, regulatory issues and other matters during a conference call and live webcast on Monday, March 8, at 7 a.m. Pacific Standard Time. Interested parties can access the webcast with the following link:

http://event.on24.com/clients/srp/5223.html

The webcast will also be accessible on the Sierra Pacific Resources web site at:

http://www.sierrapacificresources.com/investors/news/

An archived version of the webcast will remain on the Sierra Pacific Resources web site for approximately one month following the live web cast. To listen to a recording of the call by telephone, call 1-888-266-2081 and use the conference call ID number, 407032, to access the recording.

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.

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 upcoming debt maturities and for general corporate purposes, Resources'ability to receive dividends from its subsidiaries in the near future 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, adverse decisions in the Enron litigation or other pending or future litigation, 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 2004 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 Annual Report on Form 10- K for the year ended December 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.