Profits surge for Sierra Pacific

RENO -- Sierra Pacific Resources on Wednesday reported a 54.4 percent surge in first-quarter earnings, helped by a rate increase, customer growth and one-time gains.

The company earned $24.1 million, or 10 cents per share, in the three months ended March 31, up from $15.6 million, or 7 cents per share, a year earlier.

Analysts polled by Thomson Financial had forecast earnings of 8 cents per share for the latest quarter.

Revenue rose 6.4 percent, to $805.1 million from $756.4 million.

Sierra Pacific Resources shares rose 79 cents, or 6.13 percent, Wednesday to close at $13.67 on the New York Stock Exchange.

The company attributed its results to a mid-2007 rate increase, customer growth and one-time gains related to the Clark Power Station near Las Vegas and the Tracy Combined Cycle Plant near Reno.

"We're pleased with our first-quarter results," Sierra Pacific President and Chief Executive Officer Michael Yackira said in a conference call with analysts.

Yackira said that although Nevada has not been exempt from the current economic slowdown, growth has continued, particularly in the Las Vegas Valley, where several new megaresorts are under construction.

"Customer base will continue to grow, as will demand for energy," he said.

Sierra Pacific Resources, headquartered in Reno, is the holding firm of Nevada's two main utilities, Nevada Power Co. in Southern Nevada and Sierra Pacific Power Co. in the north. They serve a combined 1.3 million customers.

Nevada Power reported net income of $7.9 million on revenue of $469.2 million, up from $4.6 million income on $418 million in revenue in 2007.

The utility's residential, commercial and industrial electric customers increased by 1.5 percent, 3.7 percent and 3.4 percent respectively, the company said.

For Sierra Pacific Power, the increases in residential, commercial and industrial electric customer growth were smaller at 1.2 percent, 2.5 percent and 0.7 percent.

Sierra Pacific reported net income of $24.3 million on $335.9 million revenue, compared with income of $22 million on $338 million revenue the previous year.

Yackira said the parent firm remains committed to a three-part strategy aimed at increasing conservation and traditional energy sources while expanding renewable energy projects.

While its plans for a massive 750-megawatt, coal-fired Ely Energy Center have been delayed, Yackira said the company is proceeding with other power ventures and purchases to make Nevada independent in energy generation.

When a new 541-megawatt unit at the Tracy Generating Station east of Reno is completed this summer, Northern Nevada will be self-sufficient for the first time, he said.

Additionally, Yackira said two new gas-fired projects at the Clark Generating Station will be operating by summer, adding about 600 megawatts of peak capacity.

"These projects will reduce the impact for our customers from the effects of price volatility found on the open market," Yackira said.