SOURCE: Nevada Power Company

September 15, 2006 13:24 ET

Nevada Power Company Announces Redemption of All of Its Remaining 10 7/8% General and Refunding Mortgage Notes, Series E, Due 2009

LAS VEGAS, NV -- (MARKET WIRE) -- September 15, 2006 -- Nevada Power Company (the "Company"), a wholly owned subsidiary of Sierra Pacific Resources (NYSE: SRP), announced today that it will redeem the remaining $12,554,000 aggregate principal amount of its 10 7/8% General and Refunding Mortgage Notes, Series E, due 2009 (the "Notes") on October 16, 2006. Upon such redemption, there will not be any Notes outstanding. The Notes will be redeemed at a redemption price equal to $1,054.38 for each $1,000 Note redeemed, including accrued and unpaid interest to the redemption date.

On and after the redemption date (upon payment of the redemption price by the Company), interest on the Notes will cease to accrue, the holders of the Notes will no longer be entitled to the lien of the General and Refunding Mortgage Indenture, dated as of May 1, 2001, of the Company to The Bank of New York, as trustee, as heretofore amended and supplemented, and the Company's obligations with respect to the Notes shall be satisfied and discharged.

Notices of redemption are being sent to the registered holders of the Notes. Copies of the notices of redemption may be obtained from The Bank of New York, the trustee for the Notes, at: The Bank of New York, Attn: Redemption Unit, at 111 Sanders Creek Parkway, East Syracuse, NY 13057.

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, including Nellis Air Force Base and the Department of Energy's Nevada Test Site in Nye County. The Company provides electricity to approximately 774,000 residential and business customers.

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. Other subsidiaries include the Tuscarora Gas Pipeline Company, which owns a 50 percent interest in an interstate natural gas transmission partnership and several unregulated energy services companies.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, the securities of the Company, nor shall there be any offer, solicitation or sale of any securities of the Company in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities law of any such state or jurisdiction.

This press release may contain forward-looking statements regarding the future performance of the 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. Additional cautionary statements regarding other risk factors that could have an effect on the future performance of the Company are contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2005 and the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2006, both filed with the Securities and Exchange Commission. The Company undertakes 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.

Contact Information

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    702-367-5843

    Analyst Contact:
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    702-367-5624