Reliant Energy Power Generation Inc. said it is buying the 150MW Sunrise Power Plant in Las Vegas and a 222 MW power purchaseagreement relating to three adjacent gas turbine generation unitsknown as Sun-Peak from Sierra Pacific Resources for $33 million.The deal, which is subject to regulatory approvals, gives Reliantabout 372 MW of generation capacity. In addition, Reliant andSierra Pacific subsidiary Nevada Power entered into a short- termpower supply agreement.

Sierra Pacific said the sale price of the Sunrise Power Plantwas $106 million, subject to taxes and other adjustments atclosing. In conjunction with the purchase, Nevada Power negotiatedthe right to buy energy and ancillary services from Reliant foragreed upon prices from closing until March 1, 2003, at a cost of$73 million based on time of closing. This will result in a netprice for the generating plant upon closing of approximately $33million.

“With the sale of Sunrise Station, divestiture of our generationassets is nearly complete. The buyer is a leader in powergeneration and has already established a strong presence insouthern Nevada,” said Walter M. Higgins, CEO of Sierra PacificResources. “We’ll soon be able to devote all our resources tobuilding the best energy transmission and distribution company inthe West.”

Doug Divine, senior vice president for generation development atReliant Energy Wholesale Group, noted that the purchase enhancesReliant’s growing portfolio of generation assets in the region. InOctober, Reliant announced plans to build a 500 MW gas-fired plantcalled Reliant Energy Arrow Canyon, which will be about 20 milesnorth of Las Vegas. Construction is planned to begin inearly-to-mid 2001, with commercial operation scheduled in thesummer of 2003. In addition, the company is co-owner andco-operator of El Dorado Energy, a 480 MW gas-fired plant locatedsoutheast of Las Vegas and began commercial operation in the summerof 2000.

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