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

For Immediate Release

Reno, Nev.Â- Sierra Pacific Power Company, a subsidiary of Sierra Pacific Resources (NYSE: SRP), announced today that it has completed a private placement of $100 million principal amount of its 6¼% General and Refunding Mortgage Notes, Series H, due 2012. The notes are not registered under the Securities Act of 1933, as amended, and may not be offered or sold by holders thereof without registration unless an exemption from such registration is available. Proceeds from the sale of the notes will be used to discharge Sierra Pacific Power Company's $99 million Term Loan facility prior to its October 31, 2005 maturity. This press release does not constitute an offer to sell these notes, nor a solicitation of an offer to purchase these notes, nor is it a solicitation of any proxy or consent for any purpose.

Headquartered in Nevada, Sierra Pacific Power Company is a regulated public utility engaged in the distribution, transmission, generation and sale of electric energy and natural gas in Nevada and California. The Company provides electricity to approximately 334,000 customers in western, central and northeastern Nevada, including cities of Reno, Sparks, Carson and Elko, and a portion of eastern California, including the Lake Tahoe area. The Company also provides natural gas service in Nevada to approximately 129,000 customers in the cities of Reno and Sparks and the surrounding areas.

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 including, but 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.