News Releases

Federal Trade Commission Requests Further Information on Hart-Scott-Rodino Filing for Silverhawk Acquisition

Oct 11, 2005

LAS VEGAS, Oct. 12 /PRNewswire-FirstCall/ -- Sierra Pacific Resources (NYSE: SRP) and Pinnacle West Capital Corporation (NYSE: PNW) today announced that the Federal Trade Commission has issued a request for additional information and documentary material regarding the proposed acquisition by Sierra Pacific Resources'subsidiary, Nevada Power Company, of the 75% interest of Pinnacle West Capital Corporation in the Silverhawk power plant in Nevada.

The parties were not notified which agency, the FTC or the Antitrust Division of the Department of Justice had been cleared to review the transaction until the initial 30-day waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had nearly expired. The request will extend the waiting period imposed by the HSR Act until 30 days after the parties have substantially complied with the request. The parties have stated that they will cooperate fully with the FTC in resolving any questions the agency may have.

Silverhawk is a 570-megawatt natural gas-fueled, combined-cycle generating unit that has been operating since May 2004.

In addition to Pinnacle West's current interest in Silverhawk, the Southern Nevada Water Authority (SNWA) holds the remaining 25% interest. In February, Nevada Power entered into a long-term agreement to operate the SNWA's interest in the plant. In exchange, the SNWA retains its ownership and has begun receiving a firm energy supply at a predictable price.

Nevada Power Company is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electric energy in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson, Searchlight, Laughlin and their adjoining areas. The company also provides electricity to Nellis Air Force Base, the Department of Energy at Mercury and Jackass Flats at the Nevada Test Site. Nevada Power Company provides electricity to approximately 725,000 residential and business customers in a 4,500 square mile service area.

Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, the electric utility for most of southern Nevada, 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 50 percent interest in an interstate natural gas transmission partnership and several unregulated energy services companies.

SOURCE Sierra Pacific Resources
Media, Sonya Headen,

or Analysts,
Britta Carlson,
both for Sierra Pacific Resources.