News Releases

Sierra Pacific Resources Reports Fourth Quarter Earnings

Jan 23, 1997

Sierra Pacific Resources
Contact: Rich Atkinson or Karl Walquist
Phone: (775)834-4358 or (775)834-4345

For Immediate Release

Sierra Pacific Resources (NYSE: SRP) today reported 1996 net income of $2.19 per share of common stock. These results reflect an adjustment for a proposed one-time $13 million refund to Nevada electric customers. Net income per share for 1995 was $1.95. Revenues for the 12-month period ended Dec. 31, 1996, were $627.7 million. This is 4 percent higher than the same period in 1995 and is due to higher energy sales and record electric demand. Fourth quarter 1996 earnings were 40 cents per share versus 51 cents for the fourth quarter 1995. Earnings per share were lower than the same quarter in 1995 because of reduced earnings for Sierra Pacific Power Co., the company's principal subsidiary, as a result of a stipulated proposal with the staff of the Public Service Commission of Nevada (PSCN), Sierra Pacific Power Company and the Nevada Office of Consumer Advocate.

Among other items, the stipulated proposal calls for a $13 million refund to Nevada electric customers, a $7.1 million reduction in electric rates and a continuation of the current natural gas and electric rate freeze until Jan. 1, 2000. The PSCN is expected to issue a ruling on the proposal on Feb. 6, 1997. The agreement resulted in a non=recurring earnings adjustment of approximately 28 cents per share.

Continued strong growth in the company's customer base, increased demands for energy and stable fuel costs have resulted in increased 1996 earnings.

Noting that earnings from operations rose in 1996 over 1995, Malyn Malquist, senior vice president, principal operations officer and chief financial officer, said,"Our dynamic strategy of offering creative solutions to customer needs while maintaining price stability, together with a streamlined organization, continues to strengthen our company and position us to effectively compete regionally and in the rapidly changing utility marketplace."

Lands of Sierra, the company's real estate subsidiary, contributed approximately 3 cents per share after taxes for the year compared to 1 cent in 1995, as Sierra Pacific continues to move toward the strategic goal of profitably exiting the real estate business. 1996 earnings for the company's Tuscarora Gas Pipeline Co. subsidiary contributed approximately 7 cents per share after taxes compared to 2 cents in 1995.

The Tuscarora interstate gas pipeline was placed in service in December 1995.

Sierra Pacific Resources is a utility holding company whose principal subsidiary is 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., Lands of Sierra and e*three, an energy services company.