Sierra Pacific Resources
Contact: Rich Atkinson (financial analysts)/Karl Walquist (media)
Phone: (775)834-4358/(775)834-3891

For Immediate Release

(Reno) - Sierra Pacific Resources (NYSE: SRP) today reported net income of $21.2 million for common stock for the quarter ended September 30, 1998, compared to $18.2 million for the third quarter 1997, an increase of 16.5 percent. Earnings per share of 68 cents were up from the 59 cents reported for the same period in 1997. Third quarter revenue of $188.6 million was up by 17 percent compared to the third quarter of 1997 due to customer growth, a significant increase in lower margin wholesale electric and gas sales, and a summer that was hotter than normal. Earnings per share of $1.88 for the nine months ended September 30, 1998, were 7 percent higher than the $1.76 reported for the same period last year.

Net income for the third quarter included a charge of $2.9 million under terms of an agreement with Nevada utility regulators for an anticipated 50/50 sharing between shareholders and customers of earnings in excess of 12 percent return on equity in the electric and gas divisions.Net income forthe same period in 1997 included a $3.5 million charge for the sharing agreement. Earnings per share for the third quarter 1998 increased by 12 percent over the same period in 1997 after excluding these items.

"Sierra Pacific continues to experience the benefits of a robust local economy with customer growth and retail sales up 3 percent and 8 percent, respectively, over 1997," said Mark Ruelle, chief financial officer and treasurer."These benefits were somewhat offset during the quarter by increased energy costs, but not to the extent experienced in other areas of the country due to efficient management of these costs by our employees. Operations and maintenance expenses showed only a 1.2 percent increase after excluding energy costs."

Headquartered in Reno, Nev., Sierra Pacific Resources is a holding company whose principal subsidiary is Sierra Pacific Power Co., the electric utility for most of northern Nevada and the Lake Tahoe area of California, and a natural gas and water distributor in the Reno/Sparks area. Other subsidiaries include the Tuscarora Gas Pipeline Co., which owns 50 percent interest in an interstate natural gas transmission partnership; Lands of Sierra, a real estate management company; and eothree, an energy services company.

Sierra Pacific ResourcesFinancial Highlights
(In thousands, except for per share amounts)

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3 Months Ended June 30

	1998	1997	Change
Revenues	$188,549	$160,875	17.2%
Operating Expenses	$155,843	$131,842	18.2%
Net Income Available for Common	$21,167	$18,158	16.6%
Average Shares Outstanding	$30,957	$30,891	0.2%
Net Income Per Share	$0.68	$0.59	15.3%

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9 Months Ended September 30

	1998	1997	Change
Revenues	$544,663	$490,908	11.0%
Operating Expenses	$452,143	$403,713	12.0%
Net Income Available for Common	$58,024	$54,477	6.5%
Average Shares Outstanding	$30,945	$30,874	0.2%
Net Income Per Share	$1.88	$1.76	6.8%