Nevada Power tenders for 10 7/8% notes

New York, June 1 - Nevada Power Co. announced a tender offer for its $162.5 million of 10 7/8% general and refunding mortgage notes series E due 2009.

The Las Vegas-based electric utility said it is also soliciting consents to amend the officer's certificate for the notes to eliminate substantially all of the restrictive covenants and certain rights to redeem the notes at the option of the holders.

For each $1,000 principal amount of notes, Nevada Power will pay the present value on the settlement date of the call price of $1,054.38 on the first call date of Oct. 15, 2006 plus all scheduled interest payments up to the first call date, discounted using the yield to maturity on the 2.5% U.S. Treasury Note due Sept. 30, 2006 on the second business day immediately preceding the expiration plus 50 basis points. Accrued interest up to the settlement date will be deducted from the total, which also includes a consent payment of $30 that will only be paid to holders who tender with consents by the consent deadline.

Holders will also receive accrued interest up to but excluding the settlement date.

The consent deadline is 5 p.m. ET on June 14. The tender ends at midnight ET on June 28.

Nevada Power, a subsidiary of Sierra Pacific Resources, plans to fund the tender with a new debt financing.

The tender is subject to completion of the new offering and the receipt of consents from holders of a majority of the notes.

Goldman, Sachs & Co. is dealer manager and solicitation agent (800 828-3182 or 212 902-3440) and Morrow & Co., Inc. is information agent (800 654-2468 or 203 658-9400).

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