Sierra Pacific Resources
Contact: Karl Walquist/Robert Sagan
Phone: (775)834-3891 or (775)834-4834

For Immediate Release

Sierra Pacific Resources'Board of Directors, meeting today in Reno, has approved a quarterly dividend on common stock of 31 cents per share, an increase of 1.5 cents. The dividend is payable May 1, 1997, to shareholders of record at the close of business on April 17, 1997."Continued strong performance and earnings growth by the company in 1996 made this dividend increase possible," said Walter M. Higgins, chairman, president and chief executive officer of Sierra Pacific."Per share earnings for the year increased by 12 percent compared to 1995, despite a one-time $13 million refund to Nevada electric customers that resulted in a non-recurring earnings adjustment of 28 cents during the fourth quarter of 1996."

Higgins attributed the company's successful financial performance to strong customer growth, stable fuel costs, strict cost controls and cooler winter temperatures.

Sierra Pacific's quarterly common stock dividend was also increased during the first quarter of 1996, from 28 cents to 29.5 cents.

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.