Media Contact:  Faye I. Andersen  775-834-4822

The California Public Utilities Commission (CPUC) granted a $4.1 million, or 6.4 percent overall general rate increase for Sierra Pacific Power Company's California customers to become effective September 1.  The increase means the typical residential customer using 650 kilowatt hours of electricity would see an increase from $76.28 to $82.06 per month.

Sierra Pacific filed the general rate case with the CPUC in June 2005 to increase its rates to include capital expenditures for new investments in the company's electric system and maintenance of facilities used to distribute electricity to serve customers. 

"Since the last general rate case filed in 2002, Sierra Pacific has invested $18.6 million in its California electric system, and expects to invest an additional $16.3 million over the next two years,"according to Mary Simmons, vice president of External Affairs for Sierra Pacific.  The filing also includes the cost of energy efficiency programs provided by the company.

"Over the past several years we have added new power lines and other electric facilities and programs to serve customers.  This filing reflects the investments and costs from 2002 to 2006,"she said. 

The company filed its last general rate increase request in April 2002, which resulted in a January 2004 increase in rates.  Previously, Sierra Pacific had not filed a general rate case between the years 1995-2002.

Approximately 80 percent of Sierra Pacific's 45,000 California customers reside in the Lake Tahoe Basin.  The company's California service area extends from Portola in the north to Markleeville and Topaz Lake and Coleville in the south.  Sierra Pacific serves approximately 290,000 customers in northern Nevada. 

Sierra Pacific Power Company, a wholly-owned subsidiary of Sierra Pacific Resources (NYSE:SRP), is the electric utility serving 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.  Sierra Pacific Resources is also the holding company for Nevada Power Company, serving most of southern Nevada, and Tuscarora Gas Pipeline Company, which owns 50 percent interest in an interstate natural gas transmission partnership