Sale of Sierra Pacific Power Company Water Business Receives Final Regulatory Approval

Apr 27, 2001, 01:00 ET from Sierra Pacific Resources

    RENO, Nev., April 27 /PRNewswire/ -- The sale of Sierra Pacific Power
 Company's water business received final regulatory approval today with the
 Public Utilities Commission of Nevada (PUCN) adopting a stipulation that would
 result in a sale price of approximately $329 million.  Sierra Pacific Power
 Company is a wholly owned subsidiary of Sierra Pacific Resources (NYSE:   SRP).
     With this approval, the sale of the water business to the Truckee Meadows
 Water Authority (TMWA) is scheduled to close in mid-June 2001.
     "This sale provides good value for our shareholders as we concentrate our
 focus on becoming a premier energy distribution company in the West,"
 according to Jeff Ceccarelli, Sierra Pacific Power Company president.  He
 praised the efforts of the local governments of Reno, Sparks and Washoe
 County, Nevada, in working together and concluding a fair deal that benefits
 everyone.
     Sierra Pacific Resources said after-tax sale proceeds of approximately
 $290 million will be used to reduce the company's existing debt.
     Sierra Pacific Resources' water supply and distribution business serves
 more than 72,000 customers in the Reno-Sparks metropolitan area and has
 approximately 85 employees.  The water company assets include state-of-the-art
 treatment facilities and distribution infrastructure, water rights (surface
 and ground) and storage rights in Donner and Independence Lakes.
     Earlier this month, the PUCN issued an Interim Order approving Sierra's
 petition for termination of its water service in the Truckee Meadows.  Another
 important component for completion of the sale was received earlier this week
 when the U.S. Government assigned to TMWA the Interim Storage Agreement for
 storage of water for the Reno/Sparks area during drought years.
     Sierra Pacific Resources announced plans to sell its water business
 September 7, 2000, through an auction process conducted by Lehman Brothers,
 Sierra's financial advisors.  The auction was concluded with the announcement
 on January 15, 2001 Sierra had entered into a purchase agreement with Truckee
 Meadows Water Authority (TMWA) for the sale of the water business.  TMWA is a
 joint powers authority whose members are the City of Reno, the City of Sparks
 and Washoe County.
 
     Headquartered in Reno, Nev., Sierra Pacific Resources is a holding company
 whose principal subsidiaries are Nevada Power Company, the electric utility
 for southern Nevada, and Sierra Pacific Power Co., the electric utility for
 most of northern Nevada and the Lake Tahoe area of California, and a natural
 gas and water distributor in the Reno-Sparks area.  Other subsidiaries include
 the Tuscarora Gas Pipeline Co., which owns 50 percent interest in an
 interstate natural gas transmission partnership and Sierra Pacific
 Communications, a telecommunications company.
 
     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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X42150135
 
 

SOURCE Sierra Pacific Resources
    RENO, Nev., April 27 /PRNewswire/ -- The sale of Sierra Pacific Power
 Company's water business received final regulatory approval today with the
 Public Utilities Commission of Nevada (PUCN) adopting a stipulation that would
 result in a sale price of approximately $329 million.  Sierra Pacific Power
 Company is a wholly owned subsidiary of Sierra Pacific Resources (NYSE:   SRP).
     With this approval, the sale of the water business to the Truckee Meadows
 Water Authority (TMWA) is scheduled to close in mid-June 2001.
     "This sale provides good value for our shareholders as we concentrate our
 focus on becoming a premier energy distribution company in the West,"
 according to Jeff Ceccarelli, Sierra Pacific Power Company president.  He
 praised the efforts of the local governments of Reno, Sparks and Washoe
 County, Nevada, in working together and concluding a fair deal that benefits
 everyone.
     Sierra Pacific Resources said after-tax sale proceeds of approximately
 $290 million will be used to reduce the company's existing debt.
     Sierra Pacific Resources' water supply and distribution business serves
 more than 72,000 customers in the Reno-Sparks metropolitan area and has
 approximately 85 employees.  The water company assets include state-of-the-art
 treatment facilities and distribution infrastructure, water rights (surface
 and ground) and storage rights in Donner and Independence Lakes.
     Earlier this month, the PUCN issued an Interim Order approving Sierra's
 petition for termination of its water service in the Truckee Meadows.  Another
 important component for completion of the sale was received earlier this week
 when the U.S. Government assigned to TMWA the Interim Storage Agreement for
 storage of water for the Reno/Sparks area during drought years.
     Sierra Pacific Resources announced plans to sell its water business
 September 7, 2000, through an auction process conducted by Lehman Brothers,
 Sierra's financial advisors.  The auction was concluded with the announcement
 on January 15, 2001 Sierra had entered into a purchase agreement with Truckee
 Meadows Water Authority (TMWA) for the sale of the water business.  TMWA is a
 joint powers authority whose members are the City of Reno, the City of Sparks
 and Washoe County.
 
     Headquartered in Reno, Nev., Sierra Pacific Resources is a holding company
 whose principal subsidiaries are Nevada Power Company, the electric utility
 for southern Nevada, and Sierra Pacific Power Co., the electric utility for
 most of northern Nevada and the Lake Tahoe area of California, and a natural
 gas and water distributor in the Reno-Sparks area.  Other subsidiaries include
 the Tuscarora Gas Pipeline Co., which owns 50 percent interest in an
 interstate natural gas transmission partnership and Sierra Pacific
 Communications, a telecommunications company.
 
     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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X42150135
 
 SOURCE  Sierra Pacific Resources