News Releases

Sierra Pacific - Nevada Power Merger Application Filed with FERC

Oct 6, 1998

Sierra Pacific Resources
Contact: Media:(SP)Faye Andersen/Karl Walquist (NP)Glenda McCartney/Tom Henley
Phone: Media:(SP)(775)834-4822/(775)834-3891(NP)(775)367-5678/(775)367-5681

For Immediate Release

RENO and LAS VEGAS, Nevada (Oct. 5, 1998) -- The proposed merger of Sierra Pacific Resources (NYSE: SRP) and Nevada Power Company (NYSE: NVP) reached a milestone on Oct. 2 when the two Nevada utilities filed a joint merger application with the Federal Energy Regulatory Commission. The agency is expected to rule on the application during the first quarter of 1999.

Shareholders of both companies are voting on the merger proposal during special shareholder meetings scheduled for Oct. 9 in Reno and Las Vegas. In addition, the Public Utilities Commission of Nevada will be conducting hearings on the merger beginning Nov. 9.

The combined company, which will be named Sierra Pacific Resources, will have two operating utility subsidiaries, Sierra Pacific Power Company and Nevada Power Company. Both subsidiaries will serve more than 800,000 electric customers in southern and northern Nevada and the Lake Tahoe area of California, and 100,000 natural gas and 65,000 water customers in the Reno-Sparks area.

The merger transaction is expected to close in mid-1999.