Reversing red ink in the same two periods in 2003, Sierra Pacific Resources Monday reported a return to profitability for both the fourth quarter and full year last year. Fourth quarter earnings were $27.3 million, or 15 cents/share, compared with a consolidated loss of $19.8 million, or 17 cents/share, for the same period in 2003, and for all of 2004, the company reported net income of $28.6 million, or 16 cents/share, compared with a loss of $140.5 million, or $1.21/share, for the overall prior year.

The company attributed the turnaround to a combination of factors: (a) continued strong customer growth at its two utilities, Sierra Pacific Power Co. and Nevada Power Co.; (b) favorable general rate case decisions by the Nevada regulators; and (c) a favorable court decision in its long-standing legal fight with Enron Corp. over the aftermath of terminated power supply contracts with the two utilities in April 2002.

Sierra Pacific Resources CEO Walter Higgins said the results indicate the company has “turned the corner, moving toward full recovery from the difficulties we encountered during and following the 2000-2001 Western energy crisis.” Higgins acknowledged that the holding company and utilities still face “many challenges,” but he is pleased with the progress shown last year, which was the first profit for the company since 2001.

For the utilities, Nevada Power reported net income of $104.3 million in 2004, compared to $19.3 million in 2003; and for the fourth quarter, the Las Vegas-based utility reported net income of $19.9 million, compared with a loss of $5.8 million for the same period of 2003.

Sierra Pacific Power Co. reported $14.7 million in full-year 2004 earnings, compared with a loss of $27.2 million in 2003, and in the fourth quarter, Sierra reported earnings of $20.3 million, compared with $24,000 for the same period in 2003.

It is a “cliche” throughout the industry now, Higgins said, but nevertheless Sierra Pacific helped invent the term “going back to basics,” which is exactly what he said the utilities are doing.

©Copyright 2005Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.