Nevada Utilities Expanding Renewable Energy Program

Media Contact: Karl Walquist, (775) 834-3891

Due to the success of the SolarGenerations Program, Sierra Pacific Power and Nevada Power Company are expanding their renewable energy programs to include cash incentives for wind and hydroelectric power systems as well as photovoltaic solar systems. Both Nevada utilities are wholly-owned subsidiaries of Sierra Pacific Resources (NYSE: SRP). 

Rebates will soon be available to help customers offset installation costs for wind turbines and small, agricultural hydroelectric generating plants. In addition, more rebates will be available to customers who install solar photovoltaic systems. 

The last session of the Nevada State Legislature made the SolarGenerations demonstration program permanent, doubling the total amount of installed photovoltaic energy eligible for rebates from 1,900 kilowatts to 3,760 kilowatts, and adding the new WindGenerations and HydroGenerations programs.  Together, these programs are called RenewableGenerations.

Customers can apply for rebates through the new program beginning at 10 a.m. Pacific Daylight Time on Sept. 4, 2008, through 5 p.m. Pacific Daylight Time on October 8, 2008. Customers are encouraged to apply early as applications are accepted on a first come, first served basis, and the opportunity to apply is only available once a year. Applications are non-binding and can be easily modified as needed, and the RenewableGenerations team is available to answer questions about the application process.

Eligible customers include Sierra Pacific Power and Nevada Power residential and small business customers who plan on installing a photovoltaic system or a wind turbine at their homes or businesses.  Schools and public buildings are also eligible for rebates for solar and wind energy.  Only agricultural customers who plan on installing hydroelelectric power are eligible for the HydroGenerations program. 
 
"RenewableGenerations will build on the SolarGenerations Program and develop new elements for wind and hydro, including a network of electrical contractors to help recruit customers,"said John Hargrove, program manager for energy efficiency and conservation for Sierra Pacific and Nevada Power."These projects deliver benefits on many levels: they reduce energy bills, provide learning opportunities, help the environment, and increase our energy independence by taking advantage of abundant natural energy sources right in our own backyard."

Added Hargrove,"We're fortunate in Nevada because of the strong support for renewable energy shown by the State Legislature and the Public Utilities Commission of Nevada. As a result of their efforts, Nevada has one of the nation's most progressive programs to encourage customer-installed renewable energy."

For more information about the continuing SolarGenerations Program, as well as the new opportunities for wind power and hydroelectric power, contact RenewableGenerations at 1-866-PV-NEVADA (786-3823),info@SolarGenerations.comorwww.solargenerations.com. (Although information about the wind and hydroelectric programs is available over the phone, website information about the wind and hydroelectric programs will not be available until the end of the month.) The RenewableGenerations team provides technical and program assistance to customers and contractors.

Rebate levels for the 2009-2010 program year are:

• For SolarGenerations:
  > Residential--up to 5,000 watts at $2.30 per watt
  > Small Business--up to 30,000 watts at $2.30 per watt
  > Schools--up to 50,000 watts at $4.60 per watt
  > Public Buildings--up to 30,000 watts at $4.60 per watt
• For WindGenerations:
  > $2.50 per watt up to 10 kilowatts
  > $1.50 per watt for systems larger than 10 kilowatts (certain rules and restriction may apply)
• For HydroGenerations:
  > $2.50 per watt (available for agricultural customers meeting certain criteria)

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 and 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, economic conditions both nationally and regionally, changes in the rate ofindustrial, commercial and residential growth in its service territory, unfavorable rulings in its pending and future regulatory filings, Nevada Power's and Sierra Pacific Power's ability to maintain access to the capital markets for general corporate purposes and to finance construction projects, Nevada Power's and Sierra Pacific 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, Nevada Power Company and Sierra Pacific Power Company are containedin their Quarterly Reports on Form 10-Q for the quarter ended June 30, 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.