SNWA ‘disappointed’ by Sierra Pacific’s rejection of purchase offer

LAS VEGAS, Sept. 12, 2002 — The Southern Nevada Water Authority (SNWA) recently received a written response from Sierra Pacific Resources (SRP) Chairman Walt Higgins rejecting its $3.2 billion offer to acquire the troubled electric utility.

“We are extremely disappointed with Sierra Pacific’s response, but we can’t say it is unexpected,” said SNWA General Manager Pat Mulroy. “It is entirely consistent with the behavior this company has displayed in all its dealings with Southern Nevada’s ratepayers.

“…This proposal is not only realistic, it’s enormously beneficial to Sierra Pacific’s shareholders, customers and Southern Nevada as a whole. It is obvious that they care first and foremost about maintaining the status quo, which will continue to be financially devastating for the Southern Nevada community.”

The SNWA was created in 1991 specifically to meet the region’s water needs with the lowest cost to municipal customers. By its charter, the SNWA chose to capitalize on the utility experience of the Las Vegas Valley Water District, which was founded in 1954, and its other member agencies to manage its operations.

The SNWA will continue to review Higgins’ letter and will respond accordingly. The SNWA believes the $3.2 billion offer to acquire the assets of Nevada Power is credible and in the interests of ratepayers, the local community and SRP shareholders.

SRP’s response follows an Aug. 22, 2002, offer from the SNWA to purchase Nevada Power Company. The Southern Nevada Water Authority and its member agencies treat and deliver water to essentially the same customer base as Nevada Power Company. The largest single electricity user in Southern Nevada, the SNWA holds an AA-credit rating by Standard and Poor’s.

Source: The Southern Nevada Water Authority

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