SRP's utilities serve more than 1.2 million electric customers in Nevada and the Lake Tahoe area of California. The company also distributes natural gas to 149,000 customers in Nevada's Reno/Sparks area.

Sierra Pacific Resources is engaged in a three-part strategy to meet Nevada's energy needs. This includes increased energy efficiency and conservation programs, expanded renewable energy efforts and construction of new power plants. This strategy is diversifying the company's generation fleet and reducing reliance on volatile energy markets.

Rate base continues to grow. SRP expects to spend more than $9 billion in capital expenditures (including acquisition of Bighorn) over the next five years. Conservation and energy efficiency programs are expected to exceed $135 million over the next three years. Nevada leads the nation in solar and geothermal power per capita. SRP has announced plans to invest in a 200 MW wind generation project, co-develop geothermal resources, and add over 1,700 MWs of company owned generation in 2008, pending regulatory approval of the 598 MW Bighorn plant acquisition announced in April 2008.

An additional 1,984 MWs of generation is under development, including the 484 MW expansion of the Harry Allen facility in 2011 and 1,500 MWs at the Ely Energy Center expected to be in service in 2015 and 2016 which includes a 250-mile transmission line to link the utilities' systems.

In 2007, the company reinstated the common dividend of $0.32 per share. Consolidated revenues for 2007 totaled $3.6 billion, an increase of 7% and recurring earnings increased 53% to $0.89 per share from a year ago. Since 2004, SRPs' earnings per share compound annual growth rate was 39%.