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Exhibit 99.1
RENO, Nev., (Sept. 7) Sierra Pacific Resources announced today its intention to
sell its water business as part of its long-term strategy to focus on and
develop its core electric and gas businesses in the western United States.
Lehman Brothers, a leading investment bank, has been retained as financial
advisors on this transaction.
Walter Higgins, Chairman, President and Chief Executive Officer of Sierra
Pacific Resources said, "The dynamic nature of the utility industry offers
Sierra Pacific Resources many new opportunities to concentrate on our core
electric and gas businesses, as well as our rapidly growing telecommunications
business."
Sierra Pacific's sale of its water business is one of a series of steps it has
undertaken in pursuit of its goal to enhance its core businesses and develop a
premier transmission and distribution utility in the western United States. The
company recently completed a merger between Sierra Pacific Resources and Nevada
Power Co. In addition, Sierra Pacific is in the process of divesting its
generation assets and acquiring Portland General Electric.
Sierra Pacific Resources' water supply and distribution business serves
approximately 71,000 customers in the Reno-Sparks metropolitan area of Nevada
and has a book value of approximately $260 million. The number of retail
customers served has increased by an average of 2.5% per year over the last five
years. In addition, there has been significant growth in the company's wholesale
water business.
Jeff Ceccarelli, President of Sierra Pacific Power Company, said: "Sierra
Pacific will continue its commitment to support the quality of life in the
communities in which it operates. We understand the unique role that water plays
in the pursuit of that objective. As a result, we are determined to complete the
sale of the water business in a manner that serves the public good, offers an
outcome that is consistent with the long term needs and vision of the community,
and provides a smooth and positive transition for customers and our employees."
Headquartered in Reno, Nev., Sierra Pacific Resources is a holding company whose
principal subsidiaries are Nevada Power Co., 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.
