More reasons for Reliant to be an expansion shipper!!
---------------------- Forwarded by Lorraine Lindberg/ET&S/Enron on 
12/11/2000 10:01 AM ---------------------------


Sierra Pacific Resources <info@sierrapacific.com> on 12/11/2000 01:51:52 AM
To: NVP Subscribers <info@sierrapacific.com>
cc:  

Subject: Sierra Pacific Resources Announces Sale of Las Vegas Power Plant


  RENO, NEVADA, Dec. 11/PR Newswire/ -- Sierra
 Pacific Resources (NYSE: SRP), parent company of Nevada
 Power Company and Sierra Pacific Power Company, today
 announced that Nevada Power Company has agreed to sell the
 Sunrise Station electric generating plant in Las Vegas,
 Nev., to Reliant Energy Power Generation, Inc., a
 subsidiary of Reliant Energy (NYSE: REI). The sale
 includes two generating units owned by Nevada Power and
 rights to electricity produced by three additional units
 on the Sunrise site owned by an independent power
 producer.

  The sale price of the generating station was $106
 million, subject to taxes and other adjustments at
 closing. In conjunction with the purchase, Nevada Power
 negotiated the right to buy energy and ancillary services
 from Reliant Energy Power Generation for agreed upon
 prices from closing until March 1, 2003, at a cost of $73
 million based on time of closing. This will result in a
 net price for the generating plant upon closing of
 approximately $33 million.

  "With the sale of Sunrise Station, divestiture of
 our generation assets is nearly complete. The buyer is a
 leader in power generation and has already established a
 strong presence in southern Nevada," said Walter M.
 Higgins, chairman, president and chief executive officer
 of Sierra Pacific Resources. "We'll soon be able to devote
 all our resources to building the best energy transmission
 and distribution company in the West."

  Sunrise Station consists of two generating units
 that can be fueled by natural gas or oil capable of
 producing up to 149 megawatts of electricity. The facility
 also includes three additional gas turbine generating
 units rated at 222 megawatts. These three units are owned
 by an independent power producer, Nevada Sun-Peak Limited
 Partnership, under contract to Nevada Power. All five of
 the units are located on a 38-acre site at the base of
 Frenchman Mountain near the eastern edge of Las Vegas.
 There are no regular full-time employees at Sunrise
 Station.

  Sale of the generating assets is a regulatory
 condition of the 1999 merger of Sierra Pacific Resources
 and Nevada Power. The sale is expected to close in
 mid-2001, subject to approval and review by various
 regulatory agencies.

  The company intends to complete the sale and
 transfer of all its generating assets in Nevada in 2001.

  Credit Suisse First Boston acted as financial
 advisor to Sierra Pacific Resources on the Sunrise Station
 sale. Navigant Consulting served as the technical advisor.

  Headquartered in Nevada, Sierra Pacific Resources
 is a holding company whose principal subsidiaries are
 Nevada Power Company, the electric utility for southern
 Nevada; and Sierra Pacific Power Company, 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 Company, which owns 50
 percent interest in an interstate natural gas transmission
 partnership; and Sierra Pacific Communications, a
 telecommunications company.

  Reliant Energy and a partner jointly own and
 operate El Dorado Energy, a 480-megawatt, natural
 gas-fired facility southeast of Las Vegas. In October,
 Reliant Energy announced plans to construct a
 500-megawatt, natural gas-fired power plant about 20 miles
 north of Las Vegas, off Interstate 15.

  Based in Houston, Tex., Reliant Energy is an
 international energy services and energy delivery company
 with $20 billion in annual revenue and assets totaling $30
 billion. The company has a wholesale energy trading and
 marketing business that ranks among the top five in the
 U.S. in combined electricity and natural gas volumes and a
 presence in most of the major power regions of the U.S.
 The company has nearly 27,000 megawatts of power
 generation in operation in the U.S. and Western Europe and
 has announced acquisitions and development projects that
 will add another 4,000 megawatts.



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