News Releases

Nevada Power Company Files to Lower Proposed Rate Increase

Feb 23, 2006

Media Contact: Sonya Headen, (702) 367-5222
Analyst Contact: Britta Carlson,  (702) 367-5624

Utility Reduces Original Request for Going-Forward Rates by Approximately 48%, Reflecting Natural Gas Price Declines

Nevada Power Company, a wholly-owned subsidiary of Sierra Pacific Resources (NYSE: SRP), today filed with the Public Utilities Commission of Nevada (PUCN) a request to lower by about 48 percent -- from $264.1 million to $137.7 million -- the portion of its overall deferred energy filing related to anticipated costs for fuel and purchased power.

In its original deferred energy filing submitted January 17, 2006, this portion of the overall filing would have resulted in a rate increase of approximately 14 percent. Today's filing lowers that proposed increase, which the company has requested to begin in May, to about 8 percent. After these changes, a typical customer using 1250 kilowatt hours per month, would see an average monthly increase of $10.25, to $138.13.

"We said at the time of the filing that we were hopeful natural gas prices would decline so that we could reduce our rate request,"said Walter Higgins, chairman and chief executive officers of Sierra Pacific Resources."Indeed over the last few months we have seen such decline, resulting in our decision to amend our original request to change our going-forward rates. While we certainly would have liked to see an even larger decline in costs, this is somewhat better news for our customers and we are hopeful the downward trend will continue."Higgins pointed out that the deferred energy filing calls for a dollar-for-dollar pass through for fuel and purchased power costs with no profits to the company.

Today's filing does not affect the portion of the deferred energy filing made in January in which the company requested to recover costs it had already incurred over a one-year period for fuel and purchased power. The company requested that increase to become effective in August, amounting to about 9 percent. The two increases combined would represent an increase for a typical customer from $127.88 per month to $150.74 per month.

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 JackassFlats at the Nevada Test Site. Nevada Power Company provides electricity to approximately 750,000 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.

Forward-Looking Statements: This press release contains forward-looking statements regarding the future performance of Nevada 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 Nevada Power's general rate cases and deferred energy rate cases, Nevada Power's ability to obtain any necessary local, state and federal regulatory approvals and permits for new power plants and transmission lines and the risks related to construction of such facilities, changes in the anticipated costs of the projects, changes in applicable environmental laws or regulations, Nevada Power's ability to maintain access to the capital markets to obtain financing on favorable terms, and regulatory treatment of costs associated with constructing and operating the projects. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Nevada Power Company are contained in its Current Report on Form 8-K dated January 10, 2006, 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. Nevada 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.