741508--2/27/2008--SIERRA_PACIFIC_RESOURCES

related topics

{cost, regulation, environmental}

{debt, indebtedness, cash}

{gas, price, oil}

{financial, litigation, operation}

{cost, contract, operation}

{operation, natural, condition}

{stock, price, share}

{stock, price, operating}

{capital, credit, financial}

If NPC and/or SPPC do not receive favorable rulings in their future GRCs, it will have a significant adverse effect on our financial condition, cash flows and future results of operations. The Utilities plan to make significant capital expenditures to construct new generation and transmission facilities. If we are unable to finance such construction or limit the amount of capital expenditures associated with those facilities to forecasted levels, our financial condition and results of operation could be adversely affected. If Federal and/or State requirements are imposed on NPC and SPPC mandating further emission reductions, including limitations on carbon dioxide (CO2) emissions, such requirements could make some electric generating units, including the proposed Ely Energy Center, uneconomical to construct, maintain or operate. The Utilities are subject to numerous environmental laws and regulations that may increase our cost of operations, impact or limit our business plans, or expose us to environmental liabilities. The Utilities are subject to fuel and wholesale electricity pricing risks, which could result in unanticipated liabilities and cash flow requirements or increased volatility in our earnings, and to related credit and liquidity risks. If NPC and/or SPPC do not receive favorable rulings in the deferred energy applications that they file with the PUCN and they are unable to recover their deferred purchased power, natural gas and fuel costs, they will experience an adverse impact on cash flow and earnings. Any significant disallowance of deferred energy charges in the future could materially adversely affect their cash flow, financial condition and liquidity. If SPR is precluded from receiving dividends from the Utilities, its financial condition, and its ability to meet its debt service obligations, pay dividends and make capital contributions to its subsidiaries, will be materially adversely affected. We cannot assure investors that future dividend payments on our Common Stock will be made or, if made, in what amounts they may be paid. SPR s indebtedness is effectively subordinated to the liabilities of its subsidiaries, particularly NPC and SPPC. SPR and the Utilities have the ability to issue a significant amount of additional indebtedness under the terms of their various financing agreements. Whether SPR can procure sufficient renewable energy to meet Nevada s increasing renewable energy Portfolio Standard. Whether SPR can procure sufficient renewable energy to meet Nevada s increasing renewable energy Portfolio Standard. The Utilities ability to access the capital markets is dependent on their ability to obtain regulatory approval to do so. Our operating results will likely fluctuate on a seasonal and quarterly basis. Changes in consumer preferences, war and the threat of terrorism or epidemics may harm our future growth and operating results.

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741508--2/27/2008--SIERRA_PACIFIC_RESOURCES_/NV/