Media Contact: Andrea Smith (702) 367-5843
Analyst Contact: Britta Carlson (702) 367-5624

Nevada Power Company (the"Company") announced that it will redeem $87,500,000 aggregate principal amount of the Company's 10 7/8% General and Refunding Mortgage Notes, Series E, due 2009 (the"Series E Notes") and $122,500,000 aggregate principal amount of the Company's 9% General and Refunding Mortgage Notes, Series G, due 2013 (the"Series G Notes"), which amounts constitute 35% of each of the $250 million aggregate principal amount outstanding of the Series E Notes and $350 million aggregate principal amount outstanding of the Series G Notes, respectively. The redemption date will be July 14, 2005. The Series E Notes called for redemption will be redeemed at a redemption price equal to $1,108.75 for each $1,000 Series E Note redeemed, including accrued and unpaid interest to the redemption date. The Series G Notes called for redemption will be redeemed at a redemption price equal to $1,090.00 for each $1,000 Series G Note redeemed, including accrued and unpaid interest to the redemption date. The redemption price for the Series E Notes and Series G Notes will be paid for out of a capital contribution to the Company's equity to be made by its parent, Sierra Pacific Resources (NYSE:SRP-News).

On and after the redemption date, interest on the redeemed Series E Notes and the Series G Notes will cease to accrue, and all rights of the holders of such redeemed Notes, except the right to receive the redemption price, together with accrued and unpaid interest to the redemption date, will cease.

Notices of redemption are being sent to the registered holders of Series E Notes and the Series G Notes. Copies of the notices of redemption may be obtained from The Bank of New York, the trustee for the Series E Notes and the Series G Notes, at: The Bank of New York, Attn: Redemption Unit, at 111 Sanders Creek Parkway, East Syracuse, NY 13057.

Nevada Power Company is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electric energy in southern Nevada. Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company and Sierra Pacific Power Company, the electric utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power Company also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns a 50% interest in an interstate natural gas transmission partnership and several unregulated energy services companies.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, the securities of Nevada Power Company, nor shall there be any offer, solicitation or sale of any securities of Nevada Power Company in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities law of any such state or jurisdiction.

Certain matters in this press release are forward-looking statements regarding the redemption of the Series E Notes and the Series G Notes. Cautionary statements regarding the future performance of Nevada Power Company and Sierra Pacific Resources are contained in their Quarterly Reports on Form 10-Q for the period ended March 31, 2005, filed with the SEC.