News Releases

PUCN Approves Rate Increase in Northern Nevada; Decision Reflects Continuing Rise in Fuel and Energy Costs

Apr 12, 2006

Media Contact: Karl Walquist 775-834-3891
Analyst Contact: Britta Carlson 702-367-5624

The Public Utilities Commission of Nevada (PUCN) today approved an overall 3.5% increase in electric rates for Sierra Pacific Power Company's northern Nevada customers to reflect the continuing rise in fuel and energy costs. Sierra Pacific Power Company is a subsidiary of Sierra Pacific Resources (NYSE:SRP).

For the typical residential customer using 740 kilowatt hours of electricity, monthly bills will increase by $2.96, from $95.07 to $98.03. The increase will become effective May 1, 2006.

Known as the Base Tariff Energy Rate, the increase represents a new rate going forward that reflects the future price of fuel and energy that the utility is expected to pay in order to supply its customers.  It is a dollar-for-dollar pass through to customers with no mark-up or profit to the utility.  A majority of the increases can be attributed to the rising price of natural gas, a primary fuel used to generate electricity.

Today's approval was only one part of the company's filing made with the PUCN in December 2005.  Hearings are scheduled next month for the PUCN to review the request to recover costs the company has already incurred for fuel to generate electricity and purchase wholesale power to serve customers.

Headquartered in Reno, Nevada, Sierra Pacific Power Company is the principal utility for most of northern Nevada and the Lake Tahoe area of California. The company serves approximately 300,000 electric customers in northern Nevada and 45,000 electric customers in 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 to approximately 135,000 customers 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 December 31, 2005 and its Annual Report on Form 10-K for the year ended December 31, 2054, 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.