News Releases

NV Energy Receives PUCN Approval for Construction of Harry Allen Generating Plant and Acquisition of Bighorn Power Facility

Oct 1, 2008

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

Las Vegas  - NV Energy, a Sierra Pacific Resources (NYSE:SRP) company, today received approval from the Public Utilities Commission of Nevada (PUCN) to construct a new 484-megawatt (MW) natural gas combined cycle electric generating plant at its Harry Allen Generating Station and to acquire the 562-MW natural gas combined cycle Bighorn Power Plant from Reliant Energy. 

"These facilities will provide much-needed efficient energy production capability for southern Nevada which will benefit all customers,"said Michael Yackira, president and CEO of NV Energy. "The two projects fit well with one element of the company's three-part energy strategy, namely to invest in the cleanest, most energy-efficient new electric generating facilities to assure reliability."

Yackira added,"Combined with the other elements of our strategy, which emphasize a statewide focus on energy efficiency and conservation programs along with expanding renewable energy initiatives and investments, NV Energy will achieve our vision to be the premier provider of energy for Nevada."

The Harry Allen facility, 25 miles northeast of Las Vegas, is expected to commence operations by the summer of 2011. The PUCN also stated that the construction of the Harry Allen plant would be more beneficial to NV Energy's customers than relying on purchasing power from energy markets.

The Bighorn Power Plant is a state-of-the-art facility, located approximately 35 miles south of Las Vegas and has been operating since 2004.  The purchase is expected to close in October 2008.

These approvals were the result of NV Energy's eighth amendment to its Integrated Resource Plan (IRP) filed earlier this year. The company is required to file an IRP every three years to delineate the energy needs necessary to meet its customers' growing requirements for electricity. 

Headquartered in Nevada, Sierra Pacific Resources is a holding company whose principal subsidiaries are Nevada Power Company, now doing business as NV Energy, the electric utility for most of southern Nevada, and Sierra Pacific Power Company, now doing business as NV Energy, the electric utility for most of northern Nevada and the Lake Tahoe area of California. NV Energy also distributes natural gas in the Reno-Sparks area of northern Nevada.

This press release may contain forward-looking statements regarding the future performance of Sierra Pacific Resources and its subsidiaries, Nevada Power Company d/b/a NV Energy and Sierra Pacific Power Company d/b/a NV Energy, 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, continued regulatory support for the companies' integrated resource plans and conservation programs, fluctuations in the markets for commodities and purchased power, changes in  the Harry Allen Combined Cycle Project construction costs and schedule, the closing of the Bighorn Power Plant and changes in the companies' energy strategies. 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 contained in their Quarterly Reports on Form 10-Q for the quarters ended March 31 and June 30, 2008 and their Annual Report on Form 10-K for the year ended December 31, 2007, 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.