Sierra Pacific-Nevada Power Merger Application Filed with FERC

The proposed merger of Sierra Pacific Resources and Nevada Power Company reached a milestone last Friday when the two Nevada utilities filed a joint merger application FERC. FERC is expected to rule on the application during the first quarter of 1999 and the merger transaction is expected to close in mid-1999.

The combined company, which will be named Sierra Pacific Resources, will have two operating utility subsidiaries, Sierra Pacific Power Company and Nevada Power Company. Both subsidiaries will serve more than 800,000 electric customers in southern and northern Nevada and the Lake Tahoe area of California, and 100,000 natural gas and 65,000 water customers in the Reno-Sparks area.

Shareholders of both companies are voting on the merger proposal during special shareholder meetings scheduled for October 9, 1998 in Reno and Las Vegas. In addition, the Public Utilities Commission of Nevada will be conducting hearings on the merger beginning November 9, 1998.