Media Contact: Andrea Smith, 702-367-5843

Analyst Contact:  Britta Carlson, 702-367-5624

Sierra Pacific Resources (NYSE: SRP) today announced the expiration of its tender offers (each, an"Offer"and collectively, the"Offers") for up to $25 million in aggregate principal amount of its outstanding 7.803% Senior Notes due 2012 (the"7.803% Senior Notes") and up to $85 million in aggregate principal amount of its outstanding 8.625% Senior Notes due 2014 (the"8.625% Senior Notes,"and collectively with the 7.803% Senior Notes, the"Notes"and each a"series"of Notes). A total of $25,308,000 in aggregate principal amount of the 7.803% Senior Notes and $130,415,000 in aggregate principal amount of the 8.625% Senior Notes were tendered prior to 12:00 midnight, New York City time, on December 14, 2006 (the"Expiration Time"). The Company accepted for purchase $24,972,000 aggregate principal amount of the 7.803% Senior Notes and $84,961,000 aggregate principal amount of the 8.625% Senior Notes. The settlement of the Offers was completed today. All holders that tendered Notes that were accepted for payment received accrued and unpaid interest up to, but excluding, today.

Since the principal amount validly tendered and not withdrawn at the Expiration Time of both series of Notes exceeded the principal purchase amount of each such series, the Company accepted both series on a pro rata basis as described in the Offer to Purchase dated November 15, 2006. The pro ration factor with respect to the 7.803% Senior Notes was approximately 98.8%. The pro ration factor with respect to the 8.625% Senior Notes was approximately 65.2%.

Credit Suisse (USA) LLC acted as the exclusive Dealer Manager for the Offers and Morrow& Co., Inc. served as the Information Agent.

Headquartered in Nevada, the Company 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.