Showing improvement, albeit modest, Sierra Pacific Resources Friday reported earnings for the first quarter of $1.2 million, or a penny/share, compared to a $9.5 million loss, or an 8 cents/share, for the same period last year. There was continued strong growth at both of the company’s Nevada utilities, but the largest utility, Nevada Power Co., still recorded a loss in the first quarter.

“These positive results are an indication that the company’s financial health is continuing to improve, and reflects our ongoing focus on strengthening our core business,” said Sierra Pacific CEO Walter Higgins, who noted that the utility holding company was making progress in returning to investment-grade credit status and restoring a dividend.

Although reporting another first quarter loss, Nevada Power cut its negative numbers by more than half, compared to the first quarter of 2005 ($3.3 million loss this first quarter, compared to $8 million for the same period last year). Total revenues were up by $27 million on a quarter-to-quarter comparison.

With residential, commercial and industrial electric customers groups growing by 5%, 4.9% and 1.6%, respectively, the Las Vegas-based utility experienced increased costs for depreciation, amortization and debt, including an added $1.2 million in long-term debt interest that was primarily due to the financing of the utility’s purchase of a full interest in the Silverhawk Generating Station.

In contrast, the smaller, slower growing utility in the northern end of Nevada, Sierra Pacific Power Co., reported earnings of $12.3 million in the first quarter, compared to $11.2 million for the same period in 2005. Sierra Pacific Power’s electric revenues for the quarter were up by $11.8 million, and its natural gas utility revenues shot up by $19.2 million, the company said.

Although still relatively small, the natural gas side of the Reno-based utility’s business grew considerably more than the electric utility division. Growth in residential, commercial and industrial gas customers increased by 4.2%, 3.2% and 23.7%, respectively in the quarter; while electric residential and commercial customer numbers increased by 2.7% and 2.2%, respectively.

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