Correction: Fitch Rates Nevada Power's Anticipated $195MM Gen & Rfdg Notes 'BB+'.

NEW YORK -- (This amends a press release issued earlier today and contains revised dollar allocation amounts on the series O and N mortgage notes).

Fitch expects to assign a 'BB+' rating to Nevada Power Co.'s (NPC) $195 million general and refunding mortgage notes, comprising $75 million series O due 2018 and $120 million series N due 2036. Net proceeds will be used to repay higher coupon mortgage notes and reduce borrowings under the company's $600 million working capital facility. The Rating Outlook is Positive. The notes are being offered in a private placement under Rule 144A of the Securities Act.

NPC's Positive Rating Outlook reflects evidence of a supportive regulatory environment in Nevada, reduced litigation exposure, improved financial flexibility, adequate liquidity, and ongoing efforts to diminish reliance on the wholesale energy markets. Recent orders by the Public Utilities Commission of Nevada (PUCN) for NPC have continued to allow for full recovery of deferred energy costs and adjustments to going forward energy rates. This is a primary rating consideration given NPC's significant net short position.

The PUCN has also supported the company's efforts to reduce its exposure to the wholesale energy markets and has approved the purchase and construction of new generating facilities. Since January 2006, NPC has added approximately 1,700 MW of new generation capacity. Regulatory decisions will remain critical going forward as NPC is expected to consistently file for recovery of capital investments and deferred energy costs. A change to this pattern of constructive regulatory orders would have adverse rating implications for the company. Fitch notes that NPC has a $172 million deferred energy case pending before the PUCN. A decision in the proceeding is expected by the end of July 2006.

In addition to continued exposure to the wholesale power and natural gas markets and regulatory risk associated with recovering deferred energy costs, a primary risk for fixed-income investors is NPC's significant capital expenditure commitments and related financing required over the next several years. Given the company's strategy to close its generation gap as well as expand its transmission and distribution system, substantial additional construction/ acquisitions should be expected. NPC, together with its affiliate Sierra Pacific Power Co. (SPPC), have announced plans to develop two 750 MW coal-fired plants and a 250-mile transmission line near Ely, Nevada. The project is subject to regulatory approval and permitting requirements; the first unit would be operational in 2011 with the second unit following in 2014. Total capital expenditures for the project are estimated at $3 billion and will significantly exceed internally generated cash. The company has not yet laid out its financing plans, but Fitch expects that the company will utilize a balanced mix of debt and equity funding to support credit quality.

NPC is an integrated utility serving Las Vegas and the surrounding area in Nevada. NPC and its affiliate SPPC are subsidiaries of the holding company Sierra Pacific Resources. NPC serves approximately 774,000 electric customers in southern Nevada and owns 3,000 MW of coal and gas-fired generation. NPC's historical annual customer growth rate of 5% is among the highest in the country.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.