<PAGE>
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM TO
Commission File Number 0-508
SIERRA PACIFIC RESOURCES
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
NEVADA 88-0198358
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. Box 10100 (6100 Neil Road)
Reno, Nevada 89520-0400
(89511)
(Address of principal executive office) (Zip Code)
(702) 689-5400
(Registrant's telephone number, including area code)
Indicate by check mark whether registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
------- -------
Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock, as of the latest practicable date.
Class Outstanding at May 14, 1997
Common Stock, $1.00 par value 30,875,727 Shares
================================================================================
<PAGE>
SIERRA PACIFIC RESOURCES
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1997
CONTENTS
PART I - FINANCIAL INFORMATION
------------------------------
<TABLE>
<CAPTION>
PAGE NO.
--------
<S> <C>
ITEM 1. FINANCIAL STATEMENTS
Report of Independent Accountants...................................... 3
Consolidated Balance Sheets - March 31, 1997 and
December 31, 1996.................................................. 4
Consolidated Statements of Income - Three Months
Ended March 31, 1997 and 1996...................................... 5
Consolidated Statements of Cash Flows - Three Months
Ended March 31, 1997 and 1996...................................... 6
Notes to Consolidated Financial Statements............................. 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS..................................................... 9
PART II - OTHER INFORMATION
---------------------------
ITEM 1. LEGAL PROCEEDINGS................................................. 13
ITEM 5. OTHER INFORMATION................................................. 13
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.................................. 13
Signature Page.............................................................. 14
</TABLE>
2
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Board of Directors and Stockholders of
Sierra Pacific Resources
Reno, Nevada
We have reviewed the accompanying consolidated balance sheet of Sierra Pacific
Resources and subsidiaries as of March 31, 1997, and the related consolidated
statements of income and cash flows for the three-month period ended March 31,
1997. The interim financial statements as of March 31, 1996, and for the three-
month period then ended were reviewed by other accountants whose report dated
April 26, 1996, stated that they were not aware of any material modifications
that should be made to those statements in order for them to be in conformity
with generally accepted accounting principles. These financial statements are
the responsibility of the Company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and of making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements taken as a
whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to such consolidated financial statements for them to be in conformity
with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet and consolidated statement of
capitalization of Sierra Pacific Resources and subsidiaries as of December 31,
1996, and the related consolidated statements of income, retained earnings, and
cash flows for the year then ended (not presented herein); and in our report
dated February 14, 1997, we expressed an unqualified opinion on those
consolidated financial statements. In our opinion, the information set forth in
the accompanying consolidated balance sheet as of December 31, 1996, is fairly
stated, in all material respects, in relation to the consolidated balance sheet
from which it has been derived.
DELOITTE & TOUCHE LLP
Reno, Nevada
April 29, 1997
3
<PAGE>
SIERRA PACIFIC RESOURCES
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1997 1996
----------- ------------
(UNAUDITED)
<S> <C> <C>
ASSETS
Utility Plant at Original Cost:
Plant in service $1,997,514 $1,984,781
Less: accumulated provision for depreciation 620,877 606,406
---------- ----------
1,376,637 1,378,375
Construction work-in-progress 175,643 164,835
---------- ----------
1,552,280 1,543,210
---------- ----------
Investments in subsidiaries and other property, net 44,011 44,583
---------- ----------
Current Assets:
Cash and cash equivalents 17,971 4,949
Accounts receivable less provision for uncollectible accounts $1,710 at
March 31, 1997 and $2,196 at December 31, 1996 87,183 94,736
Materials, supplies and fuel, at average cost 26,291 27,586
Other 5,715 4,472
---------- ----------
137,160 131,743
---------- ----------
Deferred Charges:
Regulatory tax asset 67,599 67,667
Other regulatory assets 67,333 67,319
Other 19,214 14,832
---------- ----------
154,146 149,818
---------- ----------
$1,887,597 $1,869,354
========== ==========
CAPITALIZATION AND LIABILITIES
Capitalization:
Common shareholder's equity $ 607,672 $ 594,859
Preferred stock 73,115 73,115
Preferred stock subject to mandatory redemption:
SPPC-obligated mandatorily redeemable preferred securities of
SPPC's subsidiary trust, Sierra Pacific Power Capital I, holding
solely $50 million principal amount 8.6% junior subordinated
debentures of SPPC, due 2036 48,500 48,500
Long-term debt 637,742 637,846
---------- ----------
1,367,029 1,354,320
---------- ----------
Current Liabilities:
Short-term borrowings 46,000 38,000
Current maturities of long-term debt and preferred stock 25,440 25,434
Accounts payable 43,212 53,804
Accrued interest 14,159 6,849
Other current liabilities 40,434 43,530
---------- ----------
169,245 167,617
---------- ----------
Deferred Credits:
Accumulated deferred federal income taxes 164,506 164,199
Accumulated deferred investment tax credit 41,343 41,836
Regulatory tax liability 42,499 42,870
Customer advances for construction 37,955 39,429
Other 65,020 59,083
---------- ----------
351,323 347,417
---------- ----------
$1,887,597 $1,869,354
========== ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
4
<PAGE>
SIERRA PACIFIC RESOURCES
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
---------
1997 1996
------------- -------------
(UNAUDITED)
<S> <C> <C>
OPERATING REVENUES:
Electric $ 134,655 $ 127,757
Gas 28,177 25,067
Water 9,026 9,330
Other 1,455 1,672
----------- -----------
173,313 163,826
----------- -----------
OPERATING EXPENSES:
Operation:
Purchased power 31,878 31,169
Fuel for power generation 22,807 23,863
Gas purchased for resale 13,932 12,954
Other 35,349 32,019
Maintenance 6,049 4,477
Depreciation and amortization 15,378 14,062
Taxes:
Income taxes 12,289 11,916
Other than income 4,714 4,609
----------- -----------
142,396 135,069
----------- -----------
OPERATING INCOME 30,917 28,757
----------- -----------
OTHER INCOME:
Allowance for other funds used during construction 1,434 663
Other income - net 1,079 459
----------- -----------
2,513 1,122
----------- -----------
Total Income 33,430 29,879
----------- -----------
INTEREST CHARGES:
Long-term debt 10,588 9,318
Other 769 1,137
Allowance for borrowed funds used during construction and
capitalized interest (1,168) (147)
----------- -----------
10,189 10,308
----------- -----------
INCOME BEFORE OBLIGATED MANDATORILY REDEEMABLE
PREFERRED SECURITIES 23,241 19,571
Preferred dividend requirements of SPPC-obligated mandatorily
redeemable preferred securities (1,043) -
----------- -----------
INCOME BEFORE PREFERRED DIVIDENDS 22,198 19,571
Preferred dividend requirements of subsidiary (1,365) (1,785)
----------- -----------
NET INCOME $ 20,833 $ 17,786
=========== ===========
Net Income Per Share $.68 $.59
=========== ===========
Weighted Average Shares of Common Stock Outstanding 30,847,315 30,112,782
=========== ===========
Dividends Paid Per Share of Common Stock $ .295 $ .280
=========== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
5
<PAGE>
SIERRA PACIFIC RESOURCES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
---------
1997 1996
------------- -------------
(UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Income before preferred dividends: $ 22,198 $ 19,571
Non-cash items included in income:
Depreciation and amortization 15,378 14,062
Deferred taxes and deferred investment tax credit (487) (5,907)
AFUDC and capitalized interest (2,601) (810)
Early retirement and severance amortization 1,257 529
Other non-cash (476) 4,357
Changes in certain assets and liabilities:
Accounts receivable 7,553 11,574
Materials, supplies and fuel 1,294 (1,298)
Other current assets (1,243) (3,500)
Accounts payable (10,593) (41,564)
Other current liabilities (3,575) 16,956
Other - net 7,450 10,663
-------- --------
Net Cash Flows From Operating Activities 36,155 24,633
-------- --------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Additions to utility plant (28,498) (29,688)
Non-cash charges 3,240 1,359
Net customer refunds and contributions in aid construction 2,484 2,399
-------- --------
Net Cash Used In Investing Activities (22,774) (25,930)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in short-term borrowings 8,654 (5,847)
Proceeds from issuance of long-term debt - 19,875
Reduction of long-term debt (107) (115)
Decrease in funds held in trust - 9,175
Sale of common stock 1,550 3,181
Dividends paid (10,456) (8,778)
-------- --------
Net Cash (Used In) Provided From Financing Activities (359) 17,491
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS 13,022 16,194
Beginning balance in Cash and Cash Equivalents 4,949 4,243
-------- --------
Ending balance in Cash and Cash Equivalents $ 17,971 $ 20,437
======== ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash Paid During Period For:
Interest $ 4,805 $ 2,154
Income Taxes $ (104) $ -
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
NOTE 1. MANAGEMENT'S STATEMENT
- -------------------------------
In the opinion of the management of Sierra Pacific Resources, hereafter
known as the Company, the accompanying unaudited interim consolidated financial
statements contain all adjustments (consisting of only normal recurring
adjustments) necessary to present fairly the consolidated financial position,
consolidated results of operations and consolidated cash flows for the periods
shown. These consolidated financial statements do not contain the complete
detail or footnote disclosure concerning accounting policies and other matters
which are included in full year financial statements and therefore, they should
be read in conjunction with the Company's audited financial statements included
in the Company's Annual Report on Form 10-K for the year ended December 31,
1996. Deloitte & Touche LLP, the Company's independent accountants, have
performed a review of the unaudited consolidated financial statements, and their
report has been included in this report.
The results of operations for the three month period ended March 31, 1997
are not necessarily indicative of the results to be expected for the full year.
Principles of Consolidation
---------------------------
The consolidated financial statements include the accounts of the Company
and its wholly-owned subsidiaries, Sierra Pacific Power Company (SPPC),
Tuscarora Gas Pipeline Company (TGPC), Sierra Gas Holding Company (formerly
Sierra Energy Company), Sierra Energy Company dba e.three (e.three), Lands of
Sierra (LOS), and Sierra Water Development Company (SWDC). All significant
intercompany transactions and balances have been eliminated in consolidation.
Reclassifications
-----------------
Certain items previously reported for years prior to 1997 have been
reclassified to conform with the current year's presentation. Net income and
shareholder's equity were not affected by these reclassifications.
NOTE 2. EARNINGS PER SHARE
- ---------------------------
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings Per Share" in February, 1997.
This statement establishes standards for computing and presenting earnings per
share (EPS) and applies to entities with publicly held common stock or potential
common stock. It simplifies the standards for computing earnings per share and
makes them comparable to international EPS by replacing primary EPS and fully
dilutive EPS with basic EPS and dilutive EPS. It requires dual presentation on
the face of the income statement for both computations and requires a
reconciliation of the numerator and denominator of the basic EPS computation to
the numerator and denominator of the diluted EPS computation. The statement is
effective for financial statements issued for periods ending after December 15,
1997 with earlier application not permitted. If the Company were to adopt this
standard for this period, earnings per share under each computation would not be
materially different. As the statement requires, the Company will adopt the new
statement for periods after December 15, 1997.
NOTE 3. LONG-TERM DEBT
- -----------------------
The Company redeemed $10 million of senior notes, Series B on April 1, 1997.
7
<PAGE>
NOTE 4. REGULATORY ACTIONS.
- ----------------------------
Based upon the rate plan approved by the Nevada Commission on February 6,
1997, SPPC recorded, in 1996, a $13 million refund. That amount was shown as a
current liability at December 31, 1996. In the first quarter of 1997, that
refund was paid to SPPC's customers. For further discussion of the $13 million
rate refund and the stipulation, refer to the Company's 1996 Annual Report on
Form 10-K.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company's net income for the period ended March 31, 1997, was $20.8
million, an increase of 17.1% over the comparable period in 1996. Earnings were
driven by overall customer growth, increased energy sales and lower fuel costs
for the electric and gas utility operations of the Company's principal subsid-
iary, SPPC.
RESULTS OF OPERATIONS
---------------------
SPPC
- ----
Total operating revenues for the three-months ended March 31, 1997 increased
by 5.8% ($9.5 million) over the comparable period of 1996 due to increased
energy sales.
<TABLE>
<CAPTION>
MARCH 31,
---------
1997 1996
-------- --------
<S> <C> <C>
Operating Revenues:
Electric $134,655 $127,757
Gas 28,176 25,067
Water 9,026 9,330
-------- --------
Total Revenues $171,857 $162,154
-------- --------
Energy Costs:
Electric $ 54,684 $ 55,649
Gas 13,940 12,953
-------- --------
Total Energy Costs 68,624 68,602
-------- --------
Revenue Margin $103,233 $ 93,552
-------- --------
Revenue Margin by Division:
Electric $ 79,971 $ 72,108
Gas 14,236 12,114
Water 9,026 9,330
-------- --------
Total $103,233 $ 93,552
======== ========
</TABLE>
Energy costs are comprised of purchased power, fuel for power generation and
gas purchased for resale. Average energy costs for the three months ended are
set forth below.
<TABLE>
<CAPTION>
MARCH 31,
----------
1997 1996
------ ------
<S> <C> <C>
Average cost per KWH of
purchased power 3.42c 3.09c
Average cost per KWH of
generated power 2.05c 2.24c
Average cost per therm of
gas purchased for resale 28.18c 27.71c
</TABLE>
The total cost of purchased power increased by 2.3% ($.7 million) for the
three months ended March 31, 1997, over the comparable period in 1996, due to
higher priced hydro-generated energy in the Pacific Northwest.
Megawatt-hours (MWH) generated increased by 4.2% (44,257 MWH) for the three
months ended March 31, 1997, over the comparable 1996 period due to cheaper fuel
costs for generation coupled with increased customer demand and
9
<PAGE>
overall customer growth. The total cost of fuel for power generation decreased
by 4.4% ($1.1 million) reflecting lower fuel prices. The cost per KWH generated
decreased by 8.5% (.19c) for the three months ended March 31, 1997 compared to
the same period in 1996.
For the three months ended March 31, 1997, SPPC increased the therms of gas
purchased for resale by 5.8% (2,698,945 therms) over the comparable period in
1996. The total cost during the same period increased 7.5% ($.9 million) due to
per-therm cost increases of 1.7% (.47c).
Other operations expenses increased 9.4% ($3.3 million) for the three months
ended March 31, 1997, over the same period in 1996 due primarily to increases
associated with the January 1997 flood of $.3 million, $1.9 million for a stock
plan and $.5 million for environmental remediation costs associated with
property owned by Lands of Sierra.
Maintenance expenses increased 35% ($1.6 million) due to flood-related
expenses for overhead and underground lines, mains and existing structures and
for increased maintenance costs at the Valmy Plant.
Depreciation and amortization expense for the quarter ended March 31, 1997
increased 9% ($1.3 million) due to increases in utility plant. The most notable
increases were the Chalk Bluff water treatment facility and the Pinon Pine
combined cycle combustion turbine.
Income taxes increased for the three months ended March 31, 1997, over the
comparable 1996 period due to higher operating income before taxes. The
decrease in the effective tax rate for the period reflects adjustments to income
tax expense in 1996 resulting from IRS audits. Income taxes reflected in
operating income and other income-net are summarized below (dollars in
thousands):
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
---------
1997 1996
------- -------
<S> <C> <C>
Currently payable $12,358 $16,929
Deferred taxes - net 58 (4,733)
Investment tax credit - net (493) (493)
------- -------
Total income taxes $11,923 $11,703
======= =======
Income taxes charged to:
Operations $12,289 $11,909
Other Income - net (366) (206)
------- -------
Total income tax expense $11,923 $11,703
======= =======
Income before income taxes and preferred
dividend requirements $34,121 $31,274
======= =======
Effective tax rate 34.9% 37.4%
======= =======
</TABLE>
Allowance for funds used during construction (AFUDC) and capitalized
interest increased by 221% ($1.8 million) for the three months ended March 31,
1997, compared to the corresponding period in 1996. This is due to an increase
in construction work-in-progress (CWIP) from the prior year and an increase in
the capitalization rates used. Most notable is the CWIP associated with the
Alturas Intertie of $ 71.9 million at March 31, 1997 compared to $ 26.7 million
at March 31, 1996. In 1996, the CWIP balance had a larger percentage of water
projects that used a lower AFUDC rate than electric projects.
Other income increased by 35% ($.6 million) due to the sale of commercial
property by Lands of Sierra during the first quarter of 1997.
10
<PAGE>
Interest on long-term debt increased 14% ($1.3 million) for the three months
ended March 31, 1997, due to interest expenses associated with the issuance of
medium-term notes, Series C, in 1996. Other interest expenses decreased 32%
($.4 million) due to a reduction in the amount of commercial paper outstanding
in the first quarter of 1997 compared to 1996.
Due to the issuance of 8.6% trust originated preferred securities by SPPC's
subsidiary trust, Sierra Pacific Power Capital I, in the 3/rd/ quarter of 1996,
the preferred dividends on mandatorily redeemable preferred securities increased
$1 million. No such securities were outstanding for the same period in 1996.
Preferred dividend requirements for all other preferred securities decreased
23.5% ($.4 million) in the first quarter of 1997 compared to the comparable
period in 1996, due to the redemption of Series G preferred stock in June 1996,
by SPPC.
TUSCARORA GAS PIPELINE COMPANY
- ------------------------------
For the three months ended March 31, 1997, Tuscarora Gas Pipeline Company, a
wholly-owned subsidiary of the Company, contributed revenues of $.8 million
compared to $.7 million for the comparable period in 1996.
LANDS OF SIERRA
- ---------------
Lands of Sierra (LOS), a wholly-owned subsidiary of the Company, is engaged
in the development and management of land and real estate in Nevada and
California. In keeping with management's intent to liquidate the properties of
LOS, LOS sold commercial property in the first quarter of 1997 for $.7 million.
In addition, LOS received preliminary information that the costs of
environmental remediation for commercial property owned at Lake Tahoe could be
higher than previously anticipated. In the first quarter of 1997, the Company
recorded an additional $.5 million for these costs.
OTHER SUBSIDIARIES AND E.THREE
- ------------------------------
Combined, these entities contributed a net loss of $.2 million for the first
quarter of 1997 compared to a net loss of $6,000 in 1996. All of the increase
in the loss for 1997 is attributed to start up costs associated with the newly
formed subsidiary, e.three.
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
----------------------------------------------------
During the first three months of 1997, the Company earned $22.2 million in
income before preferred dividends and declared $9.6 million in common stock
dividends. SPPC, the Company's principal subsidiary, declared $1.3 million in
preferred stock dividends.
The Company redeemed $10 million of Senior Notes, Series B, in April, 1997.
11
<PAGE>
CONSTRUCTION EXPENDITURES AND FINANCING
- ---------------------------------------
The Company's construction program and capital requirements for the period
1997-2001 were originally discussed in the Company's 1996 Annual Report on Form
10-K. Of the amount projected for 1997, as of March 31, 1997, $23.3 million
(17.2%) had been spent. All financing was provided by internally-generated
funds.
In February 1997, the Nevada Commission approved a decrease of $7.1 million
in SPPC's electric rates. This reduction took effect in late February 1997
billings and all billings thereafter. For further discussion of the regulatory
action, refer to the Company's 1996 Annual Report on Form 10-K.
ALTURAS INTERTIE
- ----------------
On April 9, 1997, SPPC filed additional documentation with the Truckee
Meadows Regional Planning Commission (TMRPC) and the Public Service Commission
of Nevada for approval to route the Alturas Intertie across land in their
jurisdictions. The TMRPC will address the issue of the intertie at its May 14,
1997 meeting. SPPC expects to receive approval by the Public Service Commission
of Nevada in July, 1997.
At its meeting on April 15, 1997, Modoc National Forest denied SPPC's
Special Use Permit to construct a 2.5 mile portion of the Alturas Intertie
Project through the Modoc National Forest. However, if additional documentation
could be provided detailing the unfeasibility of building the power line over
an alternative route, forest representatives stated they would reconsider SPPC's
request. SPPC plans to submit this documentation by mid-May 1997.
SPPC anticipates construction could begin in the fall of 1997 provided the
additional approvals are received on schedule. For further discussion, refer to
the Company's 1996 Annual Report on Form 10-K.
CALIFORNIA MATTERS
- ------------------
On May 6, 1997, the California Public Utility Commission (CPUC) issued
its order implementing the California restructuring bill signed into law
in September 1996. Beginning January 1, 1998, all investor-owned utilities,
including SPPC, must offer all customers with individual or aggregated loads of
20 kilowatts or greater direct access to their distribution systems. Under the
order, customers may choose to continue to take service from their incumbent
utility at tariffed rates, purchase energy from marketers or contract directly
with a generator. Implementation plans are to be filed with the CPUC by July 1,
1997. For further discussion of regulatory actions, please refer to California
----------
Matters in the Company's 1996 Annual Report on Form 10-K.
- -------
The Company and SPPC are still reviewing this order and its compliance
requirements. Management cannot predict the effect of these changes at this
time.
12
<PAGE>
PART II
-------
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits filed with this Form 10-Q:
(15) Letter of independent accountants acknowledging awareness
regarding unaudited interim financial information of the Company.
(27) The Financial Data Schedule containing summary financial
information extracted from the condensed consolidated financial
statements on Form 10-Q for the period ended March 31, 1997, for
Sierra Pacific Resources, and is qualified in its entirety by
reference to such financial statements.
(b) Reports on Form 8-K:
None.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Sierra Pacific Resources
------------------------------
(Registrant)
Date: May 15, 1997 By: /s/ Mark A. Ruelle
-------------- ------------------------------
Mark A. Ruelle
Senior Vice President
Chief Financial Officer
(Principal Financial Officer)
(Principal Accounting Officer)
14
<PAGE>
EXHIBIT (15)
May 12, 1997
Sierra Pacific Resources
6100 Neil Road
Reno, Nevada 89511
We have made a review, in accordance with standards established by the American
Institute of Certified Public Accountants, of the unaudited interim financial
information of Sierra Pacific Resources and subsidiaries for the period ended
March 31, 1997, as indicated in our report dated April 29, 1997; because we did
not perform an audit, we expressed no opinion on that information.
We are aware that our report referred to above, which is included in your
Quarterly Report on Form 10-Q for the quarter ended March 31, 1997, is
incorporated by reference in Registration Statements Nos. 33-90284 and 333-4374
on Forms S-3 and Registration Statement Nos. 2-92454, 33-87646, and 33-48152 on
Forms S-8.
We also are aware that the aforementioned report, pursuant to Rule 436(c) under
the Securities Act of 1933, is not considered a part of the Registration
Statement prepared or certified by an accountant or a report prepared or
certified by an accountant within the meaning of Sections 7 and 11 of that Act.
DELOITTE & TOUCHE LLP
Reno, Nevada
15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> UT
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINACIAL STATEMENTS FILED ON FORM 10-Q FOR THE THREE MONTH PERIOD
ENDED MARCH 31, 1997, FOR SIERRA PACIFIC RESOURCES AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,552,280
<OTHER-PROPERTY-AND-INVEST> 44,011
<TOTAL-CURRENT-ASSETS> 137,160
<TOTAL-DEFERRED-CHARGES> 154,146
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 1,887,597
<COMMON> 30,871
<CAPITAL-SURPLUS-PAID-IN> 453,797
<RETAINED-EARNINGS> 123,004
<TOTAL-COMMON-STOCKHOLDERS-EQ> 607,672
48,500
73,115
<LONG-TERM-DEBT-NET> 637,742
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 46,000
<LONG-TERM-DEBT-CURRENT-PORT> 25,440
0
<CAPITAL-LEASE-OBLIGATIONS> 0
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2,408
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<EPS-PRIMARY> .675
<EPS-DILUTED> .675
</TABLE>
