News Releases

Sierra Pacific Makes Annual Natural Gas Filing

May 14, 2007

Media Contact:  Faye I. Andersen,  (775)  834-4822
Analyst Contact: Britta Carlson,  (702) 367-5624

Natural Gas rates could change December 1, 2007

Sierra Pacific Power Company today made its annual mandatory natural gas filing with the Public Utilities Commission of Nevada (PUCN) to change its rates to reflect the cost of rising natural gas prices.

Today's filing will be reviewed by the PUCN over the next several months and could result in a change in rates for customers in December 2007.  If approved by the PUCN, it could mean a 7% increase, or $5.08 per month for the average residential customer using 56 therms of gas per month. 

The filing seeks to recover costs the company already paid to its suppliers to provide natural gas to its customers between April 2006 and March 2007, and sets a new forward-looking rate based upon the projected price of natural gas next winter.  Nevada statute requires utilities to purchase natural gas on behalf of their customers, keep track of the expenses, and then seek reimbursement for under collection of its gas costs, or credit money back to customers if gas costs are over collected, with no profit to the company.

Sierra Pacific continually updates its costs from natural gas suppliers and will ask the PUCN to have the opportunity over the next six months to update its price projections and revise its filing in the event that natural gas market prices change

"While natural gas price increases have slowed, they still continue to rise nationwide, the same as other energy sources like oil and gasoline,"said Mary Simmons, vice president of External Affairs for Sierra Pacific Power.

The company is required to make its annual natural gas filing each May.  Over the next seven months, the request will be subject to audit and hearings will be held by the PUCN. A decision on the request is expected sometime in the fall, with rates set to change December 1.

Simmons said that customers' natural gas usage is typically low heading into the summer months, which is a good time to begin preparations for next winter's heating season when natural gas prices will likely be higher. "There are a number of things we can all do to reduce our heating bills like adding insulation, weather-stripping and caulking windows and doors, and checking our furnaces for efficient operation,"she said.

Descriptions of energy efficiency tips, programs, even a home energy audit are available on Sierra Pacific's website at The company also has brochures that urge customers to"Take Control of Your Energy Use,"available at the company's office, or by calling 834-4444.

Sierra Pacific Power Company serves approximately 146,000 natural gas customers in the Reno-Sparks metropolitan area.  Sierra Pacific Power Company is a wholly-owned subsidiary of Sierra Pacific Resources (NYSE:SRP).

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 March 31, 2007, and its Annual Report on Form 10-K for the year ended December 31, 2006, 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.