News Releases

Sierra Pacific - Nevada Power Merger Expected to Close on July 28

Jul 18, 1999

July 19, 1999
Sierra Pacific Resources
Contact: Mark Ruelle/Rich Atkinson
Phone: (775) 834-5400/(775) 834-4358

For Immediate Release

Reno) - The Sierra Pacific Resources (NYSE: SPR) - Nevada Power Company (NYSE: NVP) merger is expected to be completed by July 28, according to Michael Niggli, chairman, president and chief executive officer of Nevada Power Company.

On Wednesday, the Federal Energy Regulatory Commission (FERC) rejected the only request for rehearing of its decision to approve the merger, Niggli said."Now that the final issue before FERC has been resolved, we're ready to close the transaction and to complete the transition from two small companies into a single, stronger company."

Following the merger, Sierra Pacific Resources will be the holding company for Sierra Pacific Power and Nevada Power, as well as other subsidiaries operated by both companies.

Niggli will serve as the chairman, president and chief executive officer of the holding company and subsidiaries. Malyn Malquist, chairman, president and chief executive officer of Sierra Pacific Resources, will serve as the president and chief operating officer of the holding company and as president and chief executive officer of both utilities.

"We're excited about the benefits that will result from the merger," Malquist said."It will ensure stable energy prices and continued high quality service for our customers. Plus shareholders will benefit because of the strong customer and sales growth and cost savings anticipated for the combined company."

Added Niggli,"We look forward to implementing our vision of creating a premier distribution, transmission and energy services company."

Net merger savings of approximately $323 million over 10 years are expected to be realized from the elimination of duplicate corporate and administrative programs and greater efficiencies in operations, business processes and purchasing.

Shareholders of both companies are currently deciding whether to exchange their shares of Sierra Pacific and Nevada Power stock for stock in the new company or to accept the cash offer for their stock announced last year.

Sierra Pacific common stockholders can elect to receive 1.44 shares of the combined company's common stock per share or $37.55 per share. Each stockholder of Nevada Power can elect to receive 1.00 shares of the combined company's common stock per share or $26 per share. Shareholders who elect to receive stock and would be entitled to receive fewer than 100 shares in the merged company will receive cash instead.

The expected closing date for the merger occurs at about the same time as the normal quarterly dividend payment date for common shareholders of both companies, which is August 1. In anticipation of a July closing date, the boards of directors of both companies notified their shareholders that the new quarterly dividend of 25 cents per share of common stock would be payable by the merged company 14 days after the merger closes.

Headquartered in Reno, Nevada, Sierra Pacific Resources is a holding company whose principal subsidiary is Sierra Pacific Power Company, 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 Company, which owns 50 percent interest in an interstate natural gas transmission partnership; e.three, an energy services company; Lands of Sierra, a real estate management company; and Sierra Pacific Energy Company, which provides various products and services to retail markets.

Headquartered in Las Vegas, Nevada Power Company provides electricity and energy services to more than 1.4 million residents of Las Vegas and southern Nevada and is the nation's fastest-growing electric utility.