THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Sierra Pacific Resources (SRP)

4/3/2006 Proxy Information

The son of John F. O’Reilly, a member of the Company’s Board of Directors, is associated with the Waller Law Group, which is acting as co-counsel for the Company in two significant litigation matters. Mr. O’Reilly’s son is not working on either matter, and neither Mr. O’Reilly nor his son receives any compensation or other benefits from the Company related to these matters.

3/31/2005 Proxy Information

On January 1, 2005, SPR entered into change in control severance agreements with certain members of its executive staff, including Jeffrey L. Ceccarelli, Michael W. Yackira, Ernest E. East, Stephen R. Wood, Roberto R. Denis, Mary O. Simmons, John Brown, and Donald L. Shalmy. These agreements expire on December 31, 2007, and provide that, upon termination of the executive’s employment during the term of the Agreement (subject to an extension in the event a Potential Change in Control, as defined in the agreement, occurs during the term) following a change in control of SPR (as defined in the agreement) either (a) by SPR for reasons other than cause (as defined in the agreements), death or disability, or (b) by the executive for good reason (as defined in the agreement), including a diminution of responsibilities, compensation, or benefits (unless, with respect to reduction in salary or benefits, such reduction is applicable to all senior executives of SPR), the executive will receive certain payments and benefits. These severance payments and benefits include (i) a lump sum payment equal to two or, with respect to certain senior officers, three times the sum of the executive’s base salary and target incentive, (ii) a lump sum payment equal to the present value of the benefits the executive would have received had he continued to participate in SPR’s retirement plans for an additional two or three years (or, in the case of SPR’s Supplemental Executive Retirement Plan only, the greater of three years or the period from the date of termination until the executive’s early retirement date, as defined in such plan), and (iii) continuation of life, disability, accident and health insurance benefits for a period of 24 or 36 months immediately following termination of employment The agreements also provide that if any compensation paid, or benefit provided, to the executive, whether or not pursuant to the change in control agreements, would be subject to the federal excise tax on “excess parachute payments,” payments and benefits provided pursuant to the agreement will be cut back to the largest amount that would not be subject to such excise tax, if such cutback results in a higher after-tax payment to the executive. The Board of Directors entered into these agreements in order to attract and retain management and to encourage and reinforce continued attention to the executives’ assigned duties without distraction under circumstances arising from the possibility of a change in control of SPR. In entering into these agreements, the Board was advised by Towers Perrin, the national compensation and benefits consulting firm described above, to insure that the agreements entered into were in line with existing industry standards, and provided benefits to management consistent with those standards.

4/1/2004 Proxy Information

SPR has entered into change in control severance agreements with certain members of its executive staff, including Jeffrey L. Ceccarelli, Michael W. Yackira, Ernest E. East, Victor H. PeĖa, Roberto R. Denis, Mary O. Simmons, Susan Brennan, Carol Marin, John Brown, Michael R. Smart, Matt H. Davis, Donald L. Shalmy, Julian C. Leone, Richard J. Coyle, and Jane Crane. These agreements expire on December 31, 2004, and provide that, upon termination of the executive’s employment during the term of the Agreement (subject to an extension in the event a Potential Change in Control, as defined in the agreement, occurs during the term) following a change in control of SPR (as defined in the agreement) either (a) by SPR for reasons other than cause (as defined in the agreements), death or disability, or (b) by the executive for good reason (as defined in the agreement), including a diminution of responsibilities, compensation, or benefits (unless, with respect to reduction in salary or benefits, such reduction is applicable to all senior executives of SPR), the executive will receive certain payments and benefits. These severance payments and benefits include (i) a lump sum payment equal to two or, with respect to certain senior officers, three times the sum of the executive’s base salary and target incentive, (ii) a lump sum payment equal to the present value of the benefits the executive would have received had he continued to participate in SPR’s retirement plans for an additional two or three years (or, in the case of SPR’s Supplemental Executive Retirement Plan only, the greater of three years or the period from the date of termination until the executive’s early retirement date, as defined in such plan), and (iii) continuation of life, disability, accident and health insurance benefits for a period of 24 or 36 months immediately following termination of employment The agreements also provide that if any compensation paid, or benefit provided, to the executive, whether or not pursuant to the change in control agreements, would be subject to the federal excise tax on “excess parachute payments,” payments and benefits provided pursuant to the agreement will be cut back to the largest amount that would not be subject to such excise tax, if such cutback results in a higher after-tax payment to the executive. The Board of Directors entered into these agreements in order to attract and retain management and to encourage and reinforce continued attention to the executives’ assigned duties without distraction under circumstances arising from the possibility of a change in control of SPR. In entering into these agreements, the Board was advised by Towers Perrin, the national compensation and benefits consulting firm described above, and Skadden, Arps, Slate, Meagher & Flom, an independent outside law firm, to insure that the agreements entered into were in line with existing industry standards, and provided benefits to management consistent with those standards. In addition, the Company has entered into severance agreements with several officers, including some named above, that call for a one-time severance payment in the amount of one year’s base pay in the event they are involuntarily terminated without cause

4/9/2003 Proxy Information

Mr. William E. Peterson became Senior Vice President and General Counsel for Sierra Pacific Resources in 1993 and retired from SPR in September 2002. Following his retirement, Mr. Peterson became associated with Woodburn and Wedge, a law firm in Reno, Nevada, in which Mr. Peterson had been a partner until 1993 and at which he performed legal work for SPR and SPPC for 18 years prior to his employment by SPR. Woodburn and Wedge has performed legal services for SPPC since 1920, for NPC since 1999, and for SPR and all of its other subsidiaries from their inception, and continues to perform legal work for SPR. Mr. Peterson’s wife, an equity partner in the firm since 1982, has performed work for SPR since 1976 and continues to do so from time to time. In order to facilitate Mr. Hunterton’s transition to Mr. Peterson’s position and to protect SPR’s legal interests during the transition, Mr. Peterson agreed to perform legal work on an as-needed basis from the date of his early retirement until the end of the year. Mr. Peterson also agreed to perform a minimum number of hours of legal services for SPR during each of the next three years at his customary hourly rates, subject to satisfactory and timely performance by him within accepted standards of professional practice.

In May 2002, SPR entered into severance and release agreement with four executive officers, including Steve C. Oldham, Senior Vice President, Energy Supply, Douglas R. Ponn, Vice President, Public Policy, and Paul Heagen, Vice President, Marketing and Communications, for SPPC and NPC, and Mark A. Ruelle, President of NPC. Under the terms of these agreements, each executive officer received approximately 12 months pay, except in the case of Mr. Ruelle, who received 1.5 times his annual salary, all payable in installments over one year. In addition, each executive officer received continued medical and health coverage under SPR plans at SPR’s expense until each became reemployed and obtained comparable coverage, and in the case of Mr. Oldham, an additional payment of normal retirement pay until he attains his early retirement age (age 55). SPR also retained Mr. Ponn, formerly head of SPR’s legislative effort, to assist SPR through the January to June 2003 legislative session.