News Releases

Nevada Power Announces Private Offering of its General and Refunding Mortgage Notes, Series I, due 2012

Mar 31, 2004

Sierra Pacific Resources
Contact: Media:
Andrea Smith, (702) 367-5683
Analyst Contact:
Vicki Erickson, (775) 834-5646
Phone:please see above

For Immediate Release

Las Vegas, Nev. -- Nevada Power Company, a subsidiary of Sierra Pacific Resources (NYSE: SRP), today announced that it will privately offer $130 million principal amount of its General and Refunding Mortgage Notes, Series I, due 2012. The sale of the notes is expected to be consummated during the next week.

Nevada Power Company plans to use the proceeds from the sale of the notes to repay $130 million principal amount of its secured 6.20% Series B, Senior Notes due April 15, 2004, on or prior to maturity. The notes will be secured by the lien of Nevada Power Company's General and Refunding Mortgage Indenture, which constitutes a lien on substantially all of the Company's real property and tangible personal property located in the State of Nevada. The offering will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the"Securities Act") and outside the United States in compliance with Regulation S under the Securities Act. The notes will not be registered under the Securities Act and may not be offered or sold by holders thereof without registration unless an exemption from such registration is available. This press release does not constitute an offer to sell these notes, nor a solicitation for an offer to purchase these notes, nor is it a solicitation of any proxy or consent for any purpose.

Nevada Power Company is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electric energy in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson, Searchlight, Laughlin and their adjoining areas. The Company also provides electricity to Nellis Air Force Base, the Department of Energy at Mercury and Jackass Flats at the Nevada Test Site. Nevada Power Company provides electricity to approximately 703,000 residential and business customers in a 4,500 square mile service area.

This press release contains forward-looking statements regarding the future performance of the 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. If we are unable to consummate the offering of the notes in a timely manner, our ability to repaythe $130 million of our indebtedness referenced above will be adversely affected. Other risks and uncertainties include, but are not limited to, unfavorable rulings in the Company's future rate cases, adverse decisions in pending or future litigation, the Company's ability to access the capital markets to refinance upcoming debt maturities and for general corporate purposes, the Company's ability to purchase sufficient power to meet its power demands, whether terminated power suppliers will be successful in pursuing claims against the Company 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 the Company are contained in its Annual Report on Form 10- K for the year ended December 31, 2003, filed with the SEC. The Company undertakes 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.