Energy Companies Acquire Generation Facilities

NRG Energy Inc. and Dynegy Inc. plan to acquire 1,330 megawatts of power generation facilities from Sierra Pacific Resources. The facilities include the 740-megawatt gas-fired Clark Generating Station and 590 megawatts of the 605 megawatts, coal-fired Reid Gardner Generating Station. The facilities are currently owned by Sierra Pacific Resources' subsidiary, Nevada Power Co., and serve the rapidly growing Las Vegas market. The asset purchase price was $634 million, subject to other adjustments.

The agreements include a transitional power purchase agreement for Nevada Power to purchase energy and ancillary services until March 1, 2003 under a contract that will help provide price stability for its customers throughout the transition to an open market in Nevada. The transaction is subject to approvals from the Federal Trade Commission, the Federal Energy Regulatory Commission and the Nevada Public Utilities Commission. It is expected to close during the second quarter of 2001.