Filings reflect new state legislation designed to prevent large rate changes

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Nevada Power Company and Sierra Pacific Power Company today made their first quarterly energy rate adjustment filings with the Public Utilities Commission of Nevada (PUCN) under new legislation passed earlier this year by the Nevada State Legislature.

The new legislation requires Nevada utilities to file quarterly rate adjustments to their Base Tariff Energy Rates. These rates are set to recover costs the utility pays to purchase electricity from external suppliers or purchase fuel to generate electricity for customers. These costs are passed on, dollar-for-dollar, with no profit to the company. The legislation requiring quarterly filings was designed to lessen the potential for buildup of large balances in costs for fuel and power, thereby reducing the possibility of large annual rate adjustments for customers.

For a typical Sierra Pacific Power residential customer in northern Nevada using 740 kilowatt hours, the filing means a decrease in monthly bills from $98.12 to $96.77, or a decrease of 1.39%. For a typical Nevada Power residential customer using 1,250 kilowatt hours, the filing means an increase in monthly bills from $152.96 to $154.71, or 1.16%. These rates will become effective October 1, 2007.

These quarterly filings will now be made by Nevada Power and Sierra Pacific Power with the PUCN starting today and will result in rate adjustments 45 days from the date of each filing.

Headquartered in Nevada, Sierra Pacific Resources (NYSE:SRP) 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 also distributes natural gas in the Reno-Sparks area of northern Nevada.