Las Vegas, Nev.—Nevada Power Company d/b/a NV Energy and Sierra Pacific Power Company d/b/a NV Energy, two wholly-owned subsidiaries of NV Energy, Inc. (NYSE:NVE), announced today that each has commenced a tender offer for the entire principal amount outstanding of certain series of auction rate bonds as further described herein.

Nevada Power Company d/b/a NV Energy

The following table describes the series of auction rate bonds subject to the Nevada Power Company tender offer (collectively, the “NPC Bonds”): 

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1.                    Aggregate principal amount outstanding as of September 1, 2009.

Under the terms of Nevada Power Company’s tender offer, Nevada Power Company has offered to purchase any and all of the outstanding NPC Bonds at a purchase price equal to $900 per $1,000 principal amount of the NPC Bonds tendered. The offer will expire at 5:00 p.m., New York City time, on Monday, October 5, 2009, unless the offer is extended or earlier terminated by Nevada Power Company. Payment for tendered NPC Bonds, plus accrued interest, will be paid for in same-day funds on the settlement date, which is expected to be on October 7, 2009. The terms and conditions of the offer are set forth in an Offer to Purchase, dated September 8, 2009. In the Offer to Purchase, Nevada Power Company states that it will either use previously established credit facilities or cash on hand to pay the purchase price for the NPC Bonds purchased pursuant to the offer.

Sierra Pacific Power Company d/b/a NV Energy

The following table describes the series of auction rate bonds subject to the Sierra Pacific Power Company tender offer (collectively, the “SPPC Bonds”, and together with the NPC Bonds, the “Bonds”):

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1.             Aggregate principal amount outstanding as of September 1, 2009.

Under the terms of Sierra Pacific Power Company’s tender offer, Sierra Pacific Power Company has offered to purchase any and all of the outstanding SPPC Bonds at a purchase price equal to $900 per $1,000 principal amount of the SPPC Bonds tendered. The offer will expire at 5:00 p.m., New York City time, on Monday, October 5, 2009, unless the offer is extended or earlier terminated by Sierra Pacific Power Company. Payment for tendered SPPC Bonds, plus accrued interest, will be paid for in same-day funds on the settlement date, which is expected to be on October 7, 2009. The terms and conditions of the offer are set forth in an Offer to Purchase, dated September 8, 2009. In the Offer to Purchase, Sierra Pacific Power Company states that it will either use previously established credit facilities or cash on hand to pay the purchase price for the SPPC Bonds purchased pursuant to the offer.

This press release does not constitute an offer to buy or the solicitation of an offer to sell any of the Bonds. The Companies have retained Samuel A. Ramirez & Co., Inc. to serve as the Dealer Manager for each of the tender offers and Globic Advisors to serve as the Information Agent and Depositary for each of the tender offers. Requests for documents may be directed to Globic Advisors by telephone at (212) 201-5346 or by going to the following website :www.globic.com/nvenergy. Questions regarding the tender offers may be directed to Ryan Donovan at Samuel A. Ramirez & Co., Inc. at (212) 248-0540.

Headquartered in Las Vegas, NV Energy, Inc. is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are doing business as NV Energy. Serving a combined 54,500-square-mile service territory that stretches north to south from Elko to Laughlin, NV Energy provides a wide range of energy services and products to approximately 2.4 million citizens of Nevada as well as approximately 40 million tourists annually.

This press release may contain forward-looking statements regarding the future performance of 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. For Nevada Power Company, these risks and uncertainties include, but are not limited to, Nevada Power Company’s continuing ability to borrow under its credit facility to pay the purchase price for the NPC Bonds. For Sierra Pacific Power Company, these risks and uncertainties include, but are not limited to, Sierra Pacific Power Company’s continuing ability to borrow under its credit facility to pay the purchase price for the SPPC Bonds. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of Nevada Power Company and Sierra Pacific Power Company are contained in the companies' respective Annual Reports on Form 10-K for the year ended December 31, 2008 and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2009 and June 30, 2009, both filed with the Securities and Exchange Commission. NV Energy, Inc., Nevada Power Company and Sierra Pacific Power Company 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.

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