News Releases

Renewables Investments and Transmission Studies for Sierra Pacific Resources Utility Approved By PUCN Nevada Power Company moves forward with its first renewables investment in Southern Nevada

Jul 30, 2008


Media Contact: Adam Grant, (702) 402-5222
Analyst Contact: Britta Carlson, (702) 402-5624

Las Vegas– Nevada Power Company, a wholly-owned subsidiary of Sierra Pacific Resources (NYSE:SRP), today received approval from the Public Utilities Commission of Nevada for development of two renewable energy generating plants. Combined, both projects will represent a company investment of more than $100million. Additionally, the Commission gave approval for the company to spend $3.5 million on renewable transmission system routing and siting studies.

"The Commission's action marks a significant milestone, demonstrating our company's commitment to invest in renewables projects,"said Michael Yackira, president and CEO of Sierra Pacific Resources."These facilities will make an essential contribution to help assure clean, affordable and reliable energy, somewhat buffering our customers from future fossil fuel market uncertainties, most notably natural gas price increases."

The Commission approved a 30-megawatt (MW) co-development geothermal project with Ormat, a world-leading geothermal company headquartered in Reno, at Carson Lake, Nev., located approximately 70 miles southeast of Reno. The project will sit on federal lands, a portion of which includes the Naval Air Station at Fallon, Nev.

Also approved was the company's proposal to invest in a six-MW heat recovery energy generating facility at Goodsprings, approximately 30 miles south of Las Vegas.  The project, which will be located at the Kern River Gas compressor station, will be the company's first investment in a renewable energy project in southern Nevada. Ormat is supplying the heat-recovery generating equipment and will build the project for Nevada Power.

Yackira added,"Nevada is already number one in solar and geothermal power per capita and we are continuing to push forward aggressively. We currently have 23 other geothermal plants under contract, and are actively pursuing further investments in geothermal, solar and wind energy."

The transmission studies are part of the utilities' long-range plan to bring increased amounts of renewable energy to the State's consumers. If fully built-out, the system could be comprised of more than 500 miles of new 345 kV transmission lines and a number of new substations located strategically to provide improved grid access for geothermal, wind and solar plants that are under development, as well as meeting the utilities' other needs.  Individual transmission projects comprising the system will be subject to Commission approval.

"We are continuing to plan for expansion of our transmission grid to assure that the State's own renewable energy resources can be tapped and brought to our customers,"Yackira stated.

Nevada Power Company is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electric energy in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson, Searchlight, Laughlin and their adjoining areas. The Company also provides electricity to Nellis Air Force Base, the Department of Energy at Mercury and Jackass Flats at the Nevada Test Site. Nevada Power Company provides electricity to approximately 826,000 residential and business customers in a 4,500 square mile service area.

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.

This press release contains forward-looking statements regarding the future performance of Nevada 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. For Nevada Power Company, these risks and uncertainties include, but are not limited to, economic conditions both nationally and regionally, changes in the rate of industrial, commercial and residential growth in its service territory, unfavorable rulings in its pending and future regulatory filings, Nevada Power's ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, Nevada Power's ability to purchase sufficient fuel, natural gas and power to meet its power demands and, financial market conditions, changes in environmental laws and regulations, and construction risks. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Sierra Pacific Resources and Nevada Power Company are contained in their Quarterly Reports on Form 10-Q for the quarter ended March 31, 2008 and their Annual Reports on Form 10-K and/or Form 10-K/A for the year ended December 31, 2007, each filed with the SEC. The companies undertake 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.

Each forward-looking statement speaks only as of the date of the particular statement and the companies undertake no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.