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Nevada Power Co. pays off power suppliers, refinances short-term debt


LAS VEGAS, Oct. 30, 2002 — Nevada Power Co. announced that it has paid in full those power suppliers who earlier this year accepted extended payment terms for summer power supplies.

“We appreciate the support of those suppliers who worked with us and continued to deliver power throughout the summer,” said Walter Higgins, chairman and CEO of Sierra Pacific Resources, parent company of Nevada Power.

Nevada Power paid approximately $100 million from existing cash balances in delayed payments to those non-terminating suppliers who delivered power during the summer.

Separately, Nevada Power closed its $250 million general and refunding mortgage notes financing transaction that priced last week. $200 million of the proceeds will be used to pay maturing bank debt.

Nevada Power Company also disclosed that in addition to closing the sale of its $250 million general and refunding mortgage notes, it closed an accounts receivables purchase facility of up to $125 million as a back-up liquidity facility.

Nevada Power is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electricity in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson, Searchlight, Laughlin and their adjoining areas. The utility also provides electricity to Nellis Air Force Base, the Department of Energy at Mercury and Jackass Flats at the Nevada Test Site. The company provides electricity to approximately 639,000 customers in a 4,500 square mile service area.