Proposed Expansion Announced for Tuscarora Pipeline System

Apr 12, 2001, 01:00 ET from Sierra Pacific Resources

    RENO, Nev., April 12 /PRNewswire/ -- Sierra Pacific Resources (NYSE:   SRP)
 announced today that Tuscarora Gas Transmission Company plans to expand its
 pipeline system at a cost of approximately $60 million to meet the growing
 needs of natural gas customers in northern Nevada.  A pipeline subsidiary of
 Sierra Pacific Resources holds a 50% interest in the Tuscarora Gas
 Transmission Company.
     The proposed expansion consists of three compressor stations and a 14-mile
 pipeline extension that would extend the system from the Tracy Power Plant
 near Reno to Wadsworth, Nevada and will include an interconnect with the
 Paiute Pipeline.  When constructed, capacity on Tuscarora's expanded pipeline
 system will increase from 125 million cubic feet per day to approximately
 220 million cubic feet per day.
     "The expansion of the Tuscarora Pipeline is a key ingredient to the
 continued economic prosperity of northern Nevada and will meet the growing
 natural gas needs of new and existing customers well into the future," said
 Greg Galbraith, director of marketing and transportation for Tuscarora Gas
 Transmission Company.
     The expanded capacity will serve two new power generation facilities to be
 located near Tracy and Wadsworth, Nevada.  Duke Energy proposes to construct a
 540MW plant located near Wadsworth and Morgan Stanley is currently
 constructing the 360MW capable Naniwa Energy facility on a site located in the
 Tracy area.  In addition, the expanded capacity will supplement the growing
 gas distribution needs of Sierra Pacific Power Company and the Southwest Gas
 Corporation who collectively distribute natural gas to all of northern Nevada
 and portions of northern California.
     Tuscarora today filed an application for the proposed pipeline system
 expansion with the Federal Energy Regulatory Commission (FERC).  Before
 construction begins, Tuscarora must receive approval from FERC and other
 governmental agencies.  The company plans construction to begin in April 2002
 with completion scheduled for late 2002.
     The Tuscarora natural gas pipeline was constructed in 1995 in a
 partnership of Sierra Pacific Resources and TransCanada PipeLines Limited.
 The 229-mile pipeline stretches from Malin, Oregon, through northern
 California to Sierra Pacific Power Co.'s Tracy Power Station near Reno,
 Nevada.
 
     This press release contains forward-looking statements regarding the
 future performance of Sierra Pacific Resources.  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, in addition to those discussed herein, all of the factors discussed
 in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2000
 and its Form 10-Q for the quarter ended Dec. 31, 2000.  These reports have
 been filed with the Securities and Exchange Commission and are available
 without charge through the EDGAR system at its Web site, www.sec.gov.
 
 

SOURCE Sierra Pacific Resources
    RENO, Nev., April 12 /PRNewswire/ -- Sierra Pacific Resources (NYSE:   SRP)
 announced today that Tuscarora Gas Transmission Company plans to expand its
 pipeline system at a cost of approximately $60 million to meet the growing
 needs of natural gas customers in northern Nevada.  A pipeline subsidiary of
 Sierra Pacific Resources holds a 50% interest in the Tuscarora Gas
 Transmission Company.
     The proposed expansion consists of three compressor stations and a 14-mile
 pipeline extension that would extend the system from the Tracy Power Plant
 near Reno to Wadsworth, Nevada and will include an interconnect with the
 Paiute Pipeline.  When constructed, capacity on Tuscarora's expanded pipeline
 system will increase from 125 million cubic feet per day to approximately
 220 million cubic feet per day.
     "The expansion of the Tuscarora Pipeline is a key ingredient to the
 continued economic prosperity of northern Nevada and will meet the growing
 natural gas needs of new and existing customers well into the future," said
 Greg Galbraith, director of marketing and transportation for Tuscarora Gas
 Transmission Company.
     The expanded capacity will serve two new power generation facilities to be
 located near Tracy and Wadsworth, Nevada.  Duke Energy proposes to construct a
 540MW plant located near Wadsworth and Morgan Stanley is currently
 constructing the 360MW capable Naniwa Energy facility on a site located in the
 Tracy area.  In addition, the expanded capacity will supplement the growing
 gas distribution needs of Sierra Pacific Power Company and the Southwest Gas
 Corporation who collectively distribute natural gas to all of northern Nevada
 and portions of northern California.
     Tuscarora today filed an application for the proposed pipeline system
 expansion with the Federal Energy Regulatory Commission (FERC).  Before
 construction begins, Tuscarora must receive approval from FERC and other
 governmental agencies.  The company plans construction to begin in April 2002
 with completion scheduled for late 2002.
     The Tuscarora natural gas pipeline was constructed in 1995 in a
 partnership of Sierra Pacific Resources and TransCanada PipeLines Limited.
 The 229-mile pipeline stretches from Malin, Oregon, through northern
 California to Sierra Pacific Power Co.'s Tracy Power Station near Reno,
 Nevada.
 
     This press release contains forward-looking statements regarding the
 future performance of Sierra Pacific Resources.  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, in addition to those discussed herein, all of the factors discussed
 in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2000
 and its Form 10-Q for the quarter ended Dec. 31, 2000.  These reports have
 been filed with the Securities and Exchange Commission and are available
 without charge through the EDGAR system at its Web site, www.sec.gov.
 
 SOURCE  Sierra Pacific Resources