News Releases

Sierra Pacific Declares Quarterly Dividend

May 18, 1999

May 19, 1999
Sierra Pacific Resources
Contact: Karl Walquist/Bob Sagan
Phone: (775)834-4345

For Immediate Release

Sierra Pacific Resources'(NYSE: SRP)Board of Directors meeting today in Reno declared two shareholder dividends: one payable if the company's pending merger with Nevada Power Co. NYSE: NVP) is completed prior to Aug. 1, 1999, or another payable if the merger is not completed prior to Aug. 1.

The Board expressed optimism that the merger will be consummated prior to August 1 and declared a quarterly dividend of 25 cents per share payable within 14 days to all shareholders of record on the closing date of the merger.

The individual quarterly dividend for the merged company is expected to be 25 cents per share. Based upon Sierra Pacific's exchange ratio of 1.44 to 1 (shareholders will receive 1.44 shares of the merged company for each share of Sierra Pacific common stock held), the 25 cent quarterly dividend rate reflects a dividend equivalent of 36 cents per share or $1.44 per share on an annual basis.

If the merger is not completed prior to August 1, the quarterly dividend rate will remain at 34 cents per share, payable Aug. 1, 1999, to shareholders of record on July 16, 1999.

At the Sierra Pacific Annual Shareholders'Meeting held earlier in the day, shareholders re-elected board members Krestine M. Corbin, president and chief executive officer of Sierra Machinery, Inc.; Theodore J. Day, senior partner, Hale Day Gallagher Co.; and Dennis E. Wheeler, chairman of Coeur d'Alene Mines Corp.

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, e· three, an energy services company and Sierra Pacific Energy Company which markets the Simple Choice line of products under a licensing agreement.