News Releases

Sierra Pacific Resources Announces Tender Offers for Debt Securities

Nov 14, 2006

Media Contact: Andrea Smith, 702-367-5843
Analyst Contact: Britta Carlson, 702-367-5624

Sierra Pacific Resources (NYSE: SRP) announced today that it has commenced tender offers (the"Offers") for up to $110 million aggregate principal amount of certain series of its outstanding notes (the"Notes"), which are listed below.

CUSIP  Security      Principal    Principal    Tender     Early     Total
 No.   Description     Amount      Purchase     Offer     Tender   Conside-
                    Outstanding1    Amount    Conside-   Premium2  ration2
------  ---------   ----------  -----------   --------   -------   -------
826428  7.803%      99,142,000  $30,000,000     $1,035      $30     $1,065
 AJ 3   Senior
        due 2012
826428  8.625%    $335,000,000  $50,000,000     $1,055      $30     $1,085
 AH 7   Senior
        due 2014
826428  6.75%     $225,000,000  $30,000,000       $980      $30     $1,010
 AN 4   Senior
        due 2017
1. Aggregate principal amount outstanding as of November 15, 2006.
2. Per $1,000 principal amount of tendered Notes that are
   accepted for purchase.

The terms and conditions of the Offers are set forth in an Offer to Purchase (the"Offer to Purchase") and a Letter of Transmittal, each dated November 15, 2006.

The Company is offering to purchase the aggregate principal amount set forth in the table above in the column captioned"Principal Purchase Amount"of each series of Notes for the Tender Offer Consideration listed above (in each case, the"Principal Purchase Amount"), subject to certain conditions precedent described in the Offer to Purchase. Holders of Notes that validly tender Notes prior to 5:00 p.m., New York City time, on Wednesday, November 29, 2006, unless such time is extended or earlier terminated (the"Early Tender Time"), will be entitled to receive the Total Consideration, which includes the Tender Offer Consideration plus an early tender premium payment of $30.00 per $1,000 principal amount of Notes tendered (the"Early Tender Premium"). Holders that validly tender Notes after the Early Tender Time but at or prior to 12:00 midnight, New York City time, on Thursday, December 14, 2006, unless such time is extended or earlier terminated (the"Expiration Time"), will be entitled to receive the Tender Offer Consideration. Tendered Notes may be withdrawn prior to the Early Tender Time.

After the Early Tender Time, tendered Notes may not be withdrawn. All holders that tender Notes that are accepted for payment will also receive accrued and unpaid interest up to, but excluding, the Settlement Date, which is expected to occur on or promptly after the Expiration Time.

If acceptance of all the Notes validly tendered in the Offers with respect to one or more series would require the Company to purchase more than $110 million principal amount of the Notes, the Company currently intends to terminate the Offer with respect to one or more series of the Notes. The Company, however, is not obligated to terminate any such Offer. In the event of a termination of the Offer with respect to any series of Notes, all Notes of such series tendered will be promptly returned to the tendering holders.

The Company may increase or decrease the Principal Purchase Amount of any or all series of Notes, provided that the aggregate principal amount of the Notes purchased shall not exceed $110 million, without extending the Early Tender Time. If the aggregate principal amount of Notes of any series validly tendered at the Expiration Time exceeds the applicable Principal Purchase Amount of such series, the Company, subject to the terms and conditions of the Offers and provided it accepts tenders for Notes in any such series, will accept Notes of such series for purchase on a pro rata basis.

In the Offer to Purchase, the Company states that it will use cash on hand to fund the purchase of the Notes accepted in the Offers. In addition, the Company states in the Offer to Purchase that it intends to use a substantial portion of the proceeds from the previously announced $100 million sale by one of its subsidiaries, Tuscarora Gas Pipeline Company, of the subsidiary's 50% interest in the Tuscarora Gas Transmission Company to make a capital contribution to one or both of its utility subsidiaries, Nevada Power Company and Sierra Pacific Power Company.

This press release does not constitute an offer to buy or the solicitation of an offer to sell any of the Notes, described above. The Offers are being made pursuant to the Offer to Purchase and related Letter of Transmittal dated November 15, 2006. The Company has retained Credit Suisse (USA) LLC to serve as the exclusive Dealer Manager for the Offers and Morrow& Co., Inc. to serve as the Information Agent. Requests for documents may be directed to Morrow& Co., Inc. by telephone at (800) 607-0088 (toll-free) or (203) 658-9400. Questions regarding the Offers may be directed to Credit Suisse (USA) LLC at (800) 820-1653 (toll-free) or (212) 538-0652 (collect).

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.