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Final Phase Completed Ahead of June 30 Deadline 

Nevada Power Company, a subsidiary of Sierra Pacific Resources (NYSE:SRP), announced today that the second and final phase of the Chuck Lenzie Generating Station is now complete and fully operational.

"With this second unit of our Lenzie facility now commercial, an additional 580 megawatts of power is flowing to customers in southern Nevada,” said Roberto Denis, senior vice president of energy supply. "Energy from this unit, combined with the first 580-megawatt block that was brought on line earlier this year, provides an immediate benefit to our southern Nevada customers."

Denis pointed out that the new, more efficient Lenzie facility produces more power using less natural gas than older generating plants and also provides an internal source of power for Nevada Power, eliminating the need to purchase energy in the more volatile and expensive open market.  This significantly reduces the cost of energy southern Nevada customers would otherwise have to pay.

This second phase of the project was also completed ahead of the June 30, 2006, deadline, in time to help meet southern Nevada's higher demand for power in the hot summer months.

Lenzie consists of four natural gas-fired combustion turbines, four heat recovery steam generators and two steam turbines operating in combined-cycle mode.  The plant is located approximately 20 miles northeast of Las Vegas.  It is the first company-owned power plant completed since 1995.

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 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.