News Releases

Sierra Pacific Signs Equipment and Construction Services Contracts for New Tracy Power Plant

Jan 25, 2006

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

Sierra Pacific Power Company, a subsidiary of Sierra Pacific Resources (NYSE: SRP), announced today it has signed equipment and construction services contracts for its new 514-megawatt, combined cycle natural gas power plant at its Tracy Generation Station, east of Reno, Nevada.

The contracts, totaling $328 million, included the following companies:

  • LG Constructors, a CH2M HILL subsidiary, for engineering, procurement and construction services
  • General Electric, for combustion and steam turbine equipment
  • Nooter/Ericksen, for the plant's heat recovery steam generator

Last month, Sierra Pacific Power announced, as part of its Integrated Resource Plan, that it had received approval from the Public Utilities Commission of Nevada to move forward with construction of the $420 million plant to provide much-needed and efficient energy for its customers in northern Nevada. Construction is now expected to commence by April 2006.

Sierra Pacific Power Company

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 statement: 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, risk related to the construction of the plant, Sierra Pacific Power's ability to access the capital markets to finance the construction on favorable terms, and obtaining required regulatory approvals for financing the construction. 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.