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:

• EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;

• EBITDA does not reflect changes in, or cash requirements for, working capital needs;

• EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debts;

• 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

• 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.

          Funds from Operations (“FFO”) and Adjusted FFO, which is FFO adjusted to account for cash inflows or outflows associated with the deferred energy accounts, are presented here because the Company believes that these measures are useful to investors because the ratings agencies use these measures when determining a company’s credit ratings. The cost of the Company’s debt, the ability of the Company’s subsidiaries to pay dividends to the Company, and other capital and operational costs and expenses are impacted by the Company’s credit ratings. The Company believes that net income is the most directly comparable GAAP measure to FFO.

          Since FFO excludes certain items includable in net income, reliance on the measure has limitations; management compensates for these limitations by using the measure simply as a supplemental measure that is weighed in the balance with other GAAP measures. FFO is not necessarily an indication of the Company’s cash flow available to fund cash needs. Additionally, it should not be used as an alternative to net income when evaluating the Company’s financial performance or to cash flow from operating, investing and financing activities when evaluating the Company’s liquidity or ability to make cash distributions or pay debt service. The FFO presented by the Company may not be comparable to the FFO presented by other utility companies.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Dollars in thousands)

Sierra Pacific Resources
EBITDA

														LTM ended
	Nine months ended September 30,				Year ended December 31,									September 30,
	2006		2005		2005			2004			2003			2006
Net Income (Loss)	$	253,665	$	63,508	$	86,137		$	32,471		$	(136,629	)	$	276,294
Interest Charges		228,670		236,957		284,927			306,427			366,282			276,640
Income taxes		132,636		31,458		43,173			20,631			(44,207	)		144,351
Depreciation and Amortization		170,112		159,949		214,662			205,647			191,259			224,825
EBITDA	$	785,083	$	491,872	$	628,899		$	565,176		$	376,705		$	922,110
EBITDA/Interest Expense						2.21	x		1.84	x		1.03	x		3.33	x
Debt/EBITDA						6.16	x		7.24	x		10.15	x		4.56	x
Sierra Pacific Resources
Net interest expense	$	228,670	$	236,957	$	284,927		$	306,427		$	366,282		$	276,640
Long-Term Debt	$	4,162,341	$	3,734,822	$	3,817,122		$	4,081,281		$	3,579,674		$	4,162,341
Current maturities of long term debt plus short-term borrowings		41,051		278,804		58,909			8,491			243,970			41,051
Total Debt	$	4,203,392	$	4,013,626	$	3,876,031		$	4,089,772		$	3,823,644		$	4,203,392

Nevada Power Company
EBITDA

														LTM ended
	Nine months ended September 30,				Year ended December 31,									September 30,
	2006		2005		2005			2004			2003			2006
Net Income (Loss)	$	236,273	$	112,408	$	132,734		$	104,312		$	19,277		$	256,599
Interest Charges		134,063		118,350		134,657			137,388			190,472			150,370
Income taxes		123,402		52,679		63,995			56,572			(614	)		134,718
Depreciation and Amortization		104,076		92,421		124,098			118,841			109,655			135,753
EBITDA	$	597,814	$	375,858	$	455,484		$	417,113		$	318,790		$	677,440
EBITDA/Interest Expense						3.38	x		3.04	x		1.67	x		4.51	x
Debt/EBITDA						4.88	x		5.47	x		6.38	x		3.61	x
Nevada Power Company
Net interest expense	$	134,063	$	118,350	$	134,657		$	137,388		$	190,472		$	150,370
Long-Term Debt	$	2,429,256	$	2,113,370	$	2,214,063		$	2,275,690		$	1,899,709		$	2,429,256
Current maturities of long term debt		18,651		6,404		6,509			6,091			135,570			18,651
Total Debt	$	2,447,907	$	2,119,774	$	2,220,572		$	2,281,781		$	2,035,279		$	2,447,907

Sierra Pacific Power Company
EBITDA

														LTM ended
	Nine months ended September 30,				Year ended December 31,									September 30,
	2006		2005		2005			2004			2003			2006
Net Income (Loss)	$	42,299	$	38,894	$	52,074		$	18,577		$	(23,275	)	$	55,479
Interest Charges		54,833		54,206		69,067			62,831			96,093			69,694
Income Taxes		22,249		21,537		28,379			325			(12,237	)		29,091
Depreciation and Amortization		66,037		67,534		90,569			86,806			81,514			89,072
EBITDA	$	185,418	$	182,171	$	240,089		$	168,539		$	142,095		$	243,336
EBITDA/Interest Expense						3.48	x		2.68	x		1.48	x		3.49	x
Debt/EBITDA						4.14	x		5.91	x		7.19	x		4.50	x
Sierra Pacific Power Company
Net interest expense	$	54,833	$	54,206	$	69,067		$	62,831		$	96,093		$	69,694
Long-Term Debt	$	1,072,076	$	962,311	$	941,804			994,309			912,800		$	1,072,076
Current maturities of long term debt plus short-term borrowings		22,400		32,400		52,400			2,400			108,400			22,400
Total Debt	$	1,094,476	$	994,711	$	994,204		$	996,709		$	1,021,200		$	1,094,476