Sierra Pacific Resources
Contact: Analyst:
Vicki Erickson: (775) 834-5646
Media Contact:
Karl Walquist: (775) 834-3891
Phone:please see above

For Immediate Release

Reno, Nev. - Sierra Pacific Resources (NYSE: SRP) today reported a consolidated net loss of $44.5 million, or $0.38 per share, for the first quarter of 2004, compared with a net loss of $11.2 million, or $0.10 per share, in the same quarter of 2003. The company's first quarter results in 2004 were negatively impacted by a number of charges, including after-tax costs of approximately $26.6 million related to parent company financing activities, certain write-offs of goodwill and merger costs, and a small write- off of disallowed deferred energy costs at Nevada Power. Earnings during the first quarter of 2003 for Sierra Pacific Resources included a gain of $15.9 million related to the convertible securities issued last year.

Walter Higgins, chairman and chief executive officer of Sierra Pacific Resources, said,"We're strengthening our company's financial condition but we still have many important challenges ahead. Foremost among our goals is restoring Sierra Pacific's creditworthiness and shareholder value. Because of our financial challenges, it will take time to attain these objectives. We believe that in the long term, the business strategies we are pursuing will result in a financially healthy company."

Nevada Power Company

Nevada Power Company reported a net loss of $15.4 million for the quarter compared to a net loss of $15.2 million for the same period in 2003.

Gross electric margin (revenues after energy costs are deducted) increased by approximately $11.7 million or 12.5 percent over the first quarter of 2003. Contributing to higher margin were about $6.5 million in increased transmission revenue as portions of the Centennial Plan were placed in service and approximately $5.2 million due to customer growth and an increase in weather-related electricity consumption.

Maintenance costs for Nevada Power were $6.4 million higher than in the same period in 2003 due to scheduled plant maintenance at the utility's Clark Station and Reid Gardner power plants. Nevada Power also wrote off $4 million in disallowed merger costs, and paid an additional $3.1 million in interest on long-term debt. Depreciation and amortization for the quarter increased by $2.8 million over the year-earlier quarter.

Sierra Pacific Power Company

Net income after preferred dividends for Sierra Pacific Power was $6.7 million compared to $3 million for the same period last year.

Total gross margin for the company's electric and natural gas divisions was 6.8 percent higher than in the first quarter of 2003.

Gross electric margin increased by $4.3 million or 5.9 percent compared to the same period a year ago. Contributing to higher electric margin were increased electricity consumption because of cooler winter weather and customer growth.

Gross natural gas margin increased by $1.5 million or 12.9 percent over last year because of increased gas consumption during the winter months and customer growth.

During the first quarter of 2004, Sierra Pacific Power wrote off merger costs of $1.9 million. In addition, depreciation and amortization were $1.5 million higher than in the first quarter of 2003.

A detailed explanation of Sierra Pacific's first quarter 2004 financial results is available in the company's Form 10-Q for the quarter ended March 31, 2004, 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 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 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 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 Quarterly Reports on Form 10-Q for the quarter ended March 31, 2004 and their Annual Reports 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.

Financial Highlights