Sierra Pacific Resources Says New FERC Order Should Strengthen

Utilities' Case in Dispute With Enron 
LAS VEGAS, March 14 /PRNewswire-FirstCall/ -- Sierra Pacific Resources
(NYSE: SRP) today said that an order issued by the Federal Energy Regulatory
Commission (FERC) on Friday, March 11, 2005, has positive implications with
respect to an ongoing dispute between the company's two Nevada utilities and
Enron Power Marketing Inc. over more than $300 million in terminated power
contracts. 
The company said the FERC order clearly asserts the commission's
regulatory authority in a proceeding involving its subsidiaries, Nevada Power
Company and Sierra Pacific Power Company, along with Snohomish (Washington)
Public Utility District and several other utilities.  In its order clarifying
issues to be covered in a FERC trial scheduled to begin on June 13, 2005, the
commission said, "Enron's profits under the terminated (forward power)
contracts fall within the scope of this proceeding." 
One part of Sierra Pacific Resources' dispute with Enron is currently
before the Bankruptcy Court for the Southern District of New York with a trial
scheduled to begin on April 18, 2005. 
Walter Higgins, chairman and chief executive officer of Sierra Pacific
Resources, said, "We believe this ruling by FERC supports our continuing
efforts to convince the bankruptcy court hearing Enron's termination case that
the federal agency governing the power marketplace is the appropriate venue to
resolve any claims.  The entirety of our contractual relationship with Enron
was based on Enron's fraud, deceit and violation of FERC tariffs, rules and
regulations.  Since the Western energy crisis of 2000-2001, evidence of
Enron's wrongful and oftentimes criminal actions continues to mount." 
The FERC "Order of Clarification" issued Friday was in response to a
motion filed, not only to the parties directly involved in the case, but also
joined by the Nevada Attorney General's Bureau of Consumer Protection, the
Public Utilities Commission of Nevada, and the Attorney General of the State
of Washington. 
Higgins added, "Compelling evidence of Enron's many fraudulent actions has
been submitted to FERC and this ruling should help ensure that Enron will not
be allowed to capture unjust profits through its wrongful termination of
contracts from which it never even delivered the power.  Any payment on such
contracts would represent pure and unjust profit for Enron." 
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 50 percent interest in an interstate natural gas
transmission partnership. 
This press release contains forward-looking statements regarding the
future performance of Sierra Pacific Resources and its subsidiaries, Nevada
Power Company and Sierra Pacific Power 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.  For Sierra Pacific
Resources, these risks and uncertainties include, but are not limited to, the
Company's ability to maintain access to the capital markets, its ability to
receive dividends from its subsidiaries and the financial performance of the
Company's subsidiaries, particularly Nevada Power Company and Sierra Pacific
Power Company.  For Nevada Power Company and Sierra Pacific Power Company,
these risks and uncertainties include, but are not limited to, adverse
decisions in the Enron litigation or other pending or future litigation,
unfavorable rulings in their pending and future rate cases, their ability to
maintain access to the capital markets for general corporate purposes, their
ability to purchase sufficient power to meet their power demands and weather
conditions during the summer months of 2005 and beyond.  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 quarter ended September 30, 2004, 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. 

SOURCE  Sierra Pacific Resources 
CONTACT:
Media, Andrea Smith, +1-702-367-5683, or Analysts, Britta Carlson, +1-702-367-5624, both of Sierra Pacific Resources
-0- Mar/14/2005 17:14 GMT