News Releases

Sierra Pacific Resources reports Third Quarter Earnings

Oct 21, 1996

Sierra Pacific Resources
Contact: Malyn Malquist
Phone: (775)834-5400

For Immediate Release

Sierra Pacific Resources (NYSE: SRP) on Monday reported third quarter net income of 72 cents per share of common stock versus 55 cents for the same period last year. Earnings per share were up by 5 percent compared to the same quarter in 1995 when adjusted for non-utility and one-time items, such as the gain on a land sale in 1996, and 1995 costs associated with a proposed merger. Net income available for common shareholders for the third quarter of 1996 was $22 million. For the 12-month period ended Sept. 30, 1996, net income per share was $2.31 compared to $1.93 for the same period in 1995. Revenues for the 12-month period ended Sept. 30, 1996, were 1 percent lower compared to the same period in 1995 due to land sales in the second half of 1994 by the company's non-utility real estate subsidiary, and a price decrease in the second quarter of 1995 for all Nevada electric customers.

Third quarter 1996 earnings for Sierra Pacific Power Co., the company's principal subsidiary, were up because of increased energy sales resulting from customer growth, effective cost controls and lower energy costs. The availability of low cost natural gas supplies from the Tuscarora natural gas pipeline to fuel Sierra Pacific's Tracy Station generating units contributed to the earnings growth. Expenses related to the proposed merger with The Washington Water Power Company, which was terminated in June 1996, have been recognized in prior periods.

Lands of Sierra, Inc., the company's real estate subsidiary, contributed earnings of approximately 2 cents per share after taxes resulting from the sale of property located in Tahoe City, Calif. The sale is consistent with Sierra Pacific's strategic goal of profitably exiting the real estate business.

Third quarter 1996 earnings for the company's Tuscarora Gas Pipeline Co. subsidiary accounted for an earnings increase of approximately 1 cent per share after taxes. The Tuscarora interstate gas pipeline was placed in service in December 1995.

"Consistent customer growth, the availability of low cost fuels and on-going internal efficiencies continue to strengthen our ability to successfully compete in the evolving marketplace," said Malyn Malquist, senior vice president and acting chief financial officer."We are continuing to strengthen our competitive position by restructuring our organization and by taking creative approaches to serving our customers."

Sierra Pacific Resources is the holding company for Sierra Pacific Power Co., an electric, natural gas and water utility that serves most of northern Nevada and parts of northeastern California. Other subsidiaries include the Tuscarora Gas Pipeline Co. and Lands of Sierra, Inc.