Sierra Pacific Power 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

    EBITDA represents net income before interest, taxes, depreciation and amortization. EBITDA is presented here because Sierra Pacific Resources (the “Company”) considers it a supplemental measure of its performance and believes debt-holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:

w	EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;
w	EBITDA does not reflect changes in, or cash requirements for, working capital needs;
w	EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debts;
w	Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and
w	Other companies in this industry may calculate EBITDA differently than we do, which will limit its usefulness as a comparative measure.

Because of these limitations, the Company's management relies primarily on our GAAP results as a measure of the Company's performance and uses EBITDA on a supplemental basis.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)
Sierra Pacific Resources
EBITDA
	Six Months ended June 30,				Year ended December 31,						LTM June 30,
	2007		2006		2006		2005		2004		2007
Net Income Applicable to Common Stock	$	41,361	$	29,078	$	277,451	$	82,237	$	28,571	$	289,734
Interest Charges		140,286		150,887		311,088		284,927		307,546		300,487
Income taxes		22,547		15,349		145,605		43,118		18,050		152,803
Depreciation and Amortization		115,911		114,083		228,875		214,662		205,922		230,703
EBITDA	$	320,105	$	309,397	$	963,019	$	624,944	$	560,089	$	973,727
EBITDA/Interest Expense						3.10x		2.19x		1.82x		3.24x
Debt/EBITDA						4.16x		6.20x		7.30x		4.52x
Sierra Pacific Resources
Net interest expense	$	140,286	$	150,887	$	311,088	$	284,927	$	307,546	$	300,487
Long-Term Debt	$	4,291,833	$	4,403,714	$	4,001,542	$	3,817,122	$	4,081,281	$	4,291,833
Current maturities of long term debt		109,092		28,640		8,348		58,909		8,491		109,092
Total Debt	$	4,400,925	$	4,432,354	$	4,009,890	$	3,876,031	$	4,089,772	$	4,400,925
Nevada Power Company
EBITDA
	Six Months ended June 30,				Year ended December 31,						LTM June 30,
	2007		2006		2006		2005		2004		2007
Net Income	$	28,186	$	25,160	$	224,540	$	132,734	$	104,312	$	227,566
Interest Charges		88,260		88,149		176,612		134,657		137,388		176,723
Income taxes		14,573		12,814		117,510		63,995		56,572		119,269
Depreciation and Amortization		74,594		69,121		141,585		124,098		118,841		147,058
EBITDA	$	205,613	$	195,244	$	660,247	$	455,484	$	417,113	$	670,616
EBITDA/Interest Expense						3.74x		3.38x		3.04x		3.79x
Debt/EBITDA						3.61x		4.88x		5.47x		3.97x
Nevada Power Company
Net interest expense	$	88,260	$	88,149	$	176,612	$	134,657	$	137,388	$	176,723
Long-Term Debt	$	2,655,630	$	2,670,057	$	2,380,139	$	2,214,063	$	2,275,690	$	2,655,630
Current maturities of long term debt		7,449		6,240		5,948		6,509		6,091		7,449
Total Debt	$	2,663,079	$	2,676,297	$	2,386,087	$	2,220,572	$	2,281,781	$	2,663,079
Sierra Pacific Power Company                      0;
EBITDA
	Six Months ended June 30,				Year ended December 31,						LTM June 30,
	2007		2006		2006		2005		2004		2007
Net Income	$	31,976	$	22,271	$	57,709	$	52,074	$	18,577	$	67,414
Interest Charges		30,237		36,240		71,506		69,067		62,831		65,503
Income Taxes		13,539		11,749		27,829		28,379		325		29,619
Depreciation and Amortization		41,317		44,962		87,279		90,569		86,806		83,634
EBITDA	$	117,069	$	115,222	$	244,323	$	240,089	$	168,539	$	246,170
EBITDA/Interest Expense						3.42x		3.48x		2.68x		3.76x
Debt/EBITDA						4.39x		4.14x		5.91x		4.82x
Sierra Pacific Power Company
Net interest expense	$	30,237	$	36,240	$	71,506	$	69,067	$	62,831	$	65,503
Long-Term Debt	$	1,085,764	$	1,072,566	$	1,070,858	$	941,804		994,309	$	1,085,764
Current maturities of long term debt		101,643		22,400		2,400		52,400		2,400		101,643
Total Debt	$	1,187,407	$	1,094,966	$	1,073,258	$	994,204	$	996,709	$	1,187,407