Sierra Pacific Resources
Contact: Media Contacts: Karl Walquist (775)834-3891
Sonya Headen (702)367-5680
Analyst Contacts: Rich Atkinson (775)834-4358
Jim McMorran (775)834-4640
Phone: See contacts;
For Immediate Release
RENO, NEVADA, Dec. 4/PR Newswire/ -- Sierra Pacific Resources (NYSE: SRP),parent company of Nevada Power Company and Sierra Pacific Power Company, announced today that Nevada Power Company has agreed to sell its Harry Allen Power Station to Pinnacle West Energy, a subsidiary of Pinnacle West Capital Corporation (NYSE: PNW).
The sale price of the generating plant was $69.81 million, subject to taxes and other adjustments at closing.
In conjunction with the purchase, Nevada Power Company negotiated the right to buy energy and ancillary services from Pinnacle West Energy for agreed upon prices at a cost of approximately $4.61 million based on the time of closing. This will result in a net price for the generating plant upon closing of $65.2 million."Following the sale of Harry Allen Station, there are three of nine bundles of generating assets that remain to be sold," said Walter M. Higgins, chairman, president and chief executive officer of Sierra Pacific Resources."These sales will benefit electric industry competition in Nevada and allow us to fully concentrate on building a premier transmission and distribution company in the West."
The newest plant on Nevada Power Company's system, Harry Allen Station began commercial operation of its 72-megawatt combustion turbine unit in 1995. Fueled by natural gas or diesel oil, the power station produces electricity for southern Nevada and surrounding markets. The power station is located off Interstate Highway 15 about 30 miles north of the city of North Las Vegas. It is a remote-start facility located on a 6,000-acre site.
Sale of the generation assets is a regulatory condition of the 1999 merger of Sierra Pacific and Nevada Power. Harry Allen Station is one of nine asset bundles included in an auction started earlier this year. The sale is expected to close in mid-2001, subject to approval and review by various regulatory agencies. The company intends to complete the sale and transfer of all its generating assets in 2001. Credit Suisse First Boston acted as financial advisor to Sierra Pacific Resources on the Harry Allen Station sale. Navigant Consulting served as the technical advisor.
Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for southern Nevada; and 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; and Sierra Pacific Communications, a telecommunications company.
Pinnacle West Capital Corporation is a Phoenix-based company with consolidated assets of approximately $7 billion. Through its subsidiaries, the company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial and industrial real estate projects.
