News Releases

Sierra Pacific Resources and Nevada Power Pleased Proposed Merger Process is Moving Forward

Sep 20, 1998

Sierra Pacific Resources
Contact: Karl Walquist/Bob Sagan, Sierra Pacific and Tom Henley, Nevada Power
Phone: (SP)(775)834.4345/(NP)(775)367-5681

For Immediate Release

The Public Utilities Commission of Nevada (PUCN) today announced hearing dates for the proposed merger of the two largest electric utilities in the state. The merger was originally filed with the PUCN July 7, 1998.

"Nevada Power Company and Sierra Pacific Resources are pleased hearing dates were set and the process is moving forward,"said Deborah Helbling, director of Regulatory Affairs, Nevada Power Company."Establishing an aggressive hearing schedule will allow the Commission to comply with Nevada State law and render a decision on the merger by the first part of January 1999."

"We look forward to working with all the parties involved in the merger application process,"said Doug Ponn, executive director of Government Affairs/Regulation at Sierra Pacific."By scheduling a settlement conference before the hearings take place, we hope to reach common ground and eliminate some potential points of contention."

Nevada Power Company and Sierra Pacific Resources worked with the Commission and intervenors to determine a schedule to be held over three weeks in November. Each phase of the hearings will concentrate on different issues. Phase one will start on November 9, in Las Vegas, and will concentrate on structural features of the merger, effects on competition and existing contracts of Nevada Power Company and Sierra Pacific Resources. Phase two will concentrate on the breakdown of costs and effect on rates and quality of service. Phase three will address PUCN jurisdiction and any remaining issues.

The second week of hearings is scheduled to start November 16, in Carson City, with the final week of hearings scheduled for November 23, in Las Vegas. Testimony from intervenors is due October 29, for phases one and two, and November 6, for phase three.

Both Nevada Power Company and Sierra Pacific Resources have set special stockholder meetings to vote on the merger. The meetings are set for October 9, with Sierra Pacific Resources'meeting scheduled for 9 a.m., at the Peppermill Hotel Casino, Reno, and Nevada Power Company's meeting scheduled for 3 p.m., at the Riviera Hotel Casino, Las Vegas.