News Releases

Sierra Pacific Files Certification in Rate Cases; Lowers Request for Electric Rate Increase From $27 Million to $3.2 Million

Jan 23, 2006

Media Contact: Karl Walquist, (775) 834-3891
Analysts Contact: Britta Carlson, (702) 367-5624

Sierra Pacific Power Company, a wholly owned subsidiary of Sierra Pacific Resources (NYSE: SRP), made its certification filings today with the Public Utilities Commission of Nevada (PUCN), lowering the overall general rate increase originally requested for electric customers.

As a result of today's filing, the company's rate increase request for electric customers has been reduced from the 3.4 percent total increase previously announced to 0.4 percent. The monthly bill for a typical residential electric customer using 740 kilowatt hours of electricity would rise from $95.06 to $97.19. The overall natural gas rate increase requested remains virtually the same as previously announced.

"We are pleased the proposed general rate increase for electric customers will be considerably less than we originally expected,"said Mary Simmons, vice president of External Affairs for Sierra Pacific Power."Energy prices have been rising dramatically throughout the nation during the past year and it is gratifying that we are able to announce an adjustment that is more favorable to our customers."

Sierra Pacific originally filed its proposed general rate increases on Oct. 1, 2005. After the filing, the utility can update or"certify"certain calculations before hearings are conducted by the PUCN. The total amount of the electric increase was reduced from $27 million to $3.2 million.

According to company officials, the change is due to an update in the time period covered by the company's request and accounts for new customer growth during that period. A change in the calculation of depreciation rates also occurred in the electric case.

The electric and natural gas cases will be heard concurrently by the PUCN. Formal hearings on the cases are scheduled to begin Feb. 21 and to continue on various dates in February and March. A decision from the PUCN is expected on May 1, 2006, and the new rates would be effective shortly thereafter.

Headquartered in Reno, Nevada, Sierra Pacific Power Company is the principal utility for most of northern Nevada and the Lake Tahoe area of California. It is a wholly owned subsidiary of Sierra Pacific Resources, which also is the holding company for Nevada Power Company, the electric utility for southern Nevada. Sierra Pacific Power also distributes natural gas in the Reno-Sparks area of northern Nevada. Other subsidiaries of Sierra Pacific Resources include the Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership.

Forward-Looking Statements: This press release contains forward-looking statements regarding the future performance of Sierra Pacific Power Company, within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from current expectations. These risks and uncertainties include, but are not limited to, unfavorable rulings in Sierra Pacific Power's general rate cases and deferred energy rate cases. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Power Company are contained in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2005 and its Annual Report on Form 10-K for the year ended December 31, 2004, filed with the SEC. Sierra Pacific Power Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.