August 6, 1999
Sierra Pacific Resources
Contact: Faye I. Andersen/Rich Atkinson
Phone: (775) 834-4822/(775) 834-4358

For Immediate Release

RENO, NEVADA (August 5, 1999) PR NEWSWIRE - Sierra Pacific Resources (SRP:NYSE) announced today that the proration of stock and cash for shareholders of Sierra Pacific Resources and Nevada Power Company that selected all cash has been determined and that cash payments are being made to shareholders today.

Sierra Pacific Resources shareholders who elected to receive cash, will receive 80.139 percent in cash and 19.861 percent in shares of common stock in the new company. Shareholders of fewer than 505 shares of Sierra Pacific Resources stock, who requested cash, will receive all cash for their shares. This prevents an allocation to a shareholder of fewer than 100 shares.

Nevada Power Company shareholders who elected to receive cash, will receive 88.700 percent in cash and 11.300 percent in shares of common stock in the new company. Shareholders of fewer than 885 shares of Nevada Power Company stock, who requested cash, will receive all cash for their shares.

The two companies closed their merger transaction on July 28 and under the terms of the merger agreement, shareholders could elect to receive cash, shares of common stock in the new company or a combination of both. Shareholders of both companies who elected to receive stock, those who did not respond to the election and those who chose no preference automatically received shares of common stock. Shareholders with fewer than 100 shares of stock in either company automatically received cash. The proration was necessary because the shareholders of both companies did not elect to receive all of the shares allocated to them, and the remaining shares were proportionately allocated among those shareholders who elected to receive cash.

Cash payments are being made beginning today by Harris Trust Company of New York. Old stock certificates being held for both companies are being exchanged for certificates in the new company and mailed upon surrender of the old certificates.

The company reported that its voluntary severance program for employees, as part of the combination of the two companies, is ahead of target."We're pleased that we are exceeding our goals with the voluntary severance program, thus allowing us the opportunity to surpass our merger savings targets," said Sierra Pacific Resources Chairman and CEO Michael R. Niggli.

Sierra Pacific Resources is a holding company whose principal subsidiaries are Sierra Pacific Power Company and Nevada Power Company. Combined, the two utilities serve 843,000 electric customers in southern and northern Nevada and the Lake Tahoe area of California, along with 105,000 natural gas ad 67,000 water customers in Reno, Nevada.