May 2, 2000
Sierra Pacific Resources
Contact: Karl Walquist / Bob Sagan
Phone: (775) 834-3891 / (775) 834-4834

For Immediate Release

Sierra Pacific Power, Nevada Power, Portland General Electric, Avista Corporation, Montana Power and Puget Sound Energy have signed an agreement (a memorandum of understanding or MOU) to study the formation of a for-profit Independent Transmission Company (ITC)*. While not yet defined, the ITC could own, lease or maintain transmission lines increasing efficiency and reliability.

The MOU between the six companies forms the foundation for compliance with regulations issued last year by the Federal Energy Regulatory Commission (FERC). FERC Order 2000 calls for creation and implementation of a Regional Transmission Organization (RTO) by Dec. 15, 2001.

Under terms of the MOU, the six founding members of the ITC will be among the many organizations joining RTO West, a non-profit Independent System OperatorÂ- the region's proposed structure to meet the terms of FERC Order 2000. RTO West would control transmission operations and pricing in a region including eight western states. The ITC founders intend to file jointly with RTO West by Oct. 15, 2000, as required by FERC.

The companies believe consolidation of management of their electric transmission assets - combined with the independent characteristics of the ITC - is the best way to maintain the value of the existing electrical transmission infrastructure while meeting new federal transmission regulations.

The utilities will retain a consultant to study options for structure and operations of the proposed ITC.

For more detailed information on the MOU and formation of the ITC, visit the RTO West website at www.nwrto.org.

*An Independent Transmission Company is engaged solely in the bulk transmission of electricity.