Document:

<PAGE>
                                                                     Exhibit 4.2

                                    EXHIBIT A

                             FORM OF SERIES E NOTES

  [INSERT THE GLOBAL NOTE LEGEND, IF APPLICABLE, PURSUANT TO THE PROVISIONS OF
                  THE INDENTURE AND THE OFFICER'S CERTIFICATE]

[INSERT THE PRIVATE PLACEMENT LEGEND, IF APPLICABLE, PURSUANT TO THE PROVISIONS
                OF THE INDENTURE AND THE OFFICER'S CERTIFICATE]

                              NEVADA POWER COMPANY
          10 7/8% General and Refunding Mortgage Notes, Series E, due 2009

<TABLE>
<S>                                         <C>                                <C>
Original Interest Accrual Date:             October 29, 2002                   Redeemable:  Yes  [X]    No   [ ]
Stated Maturity:                            October 15, 2009                   Redemption Date:  See Below
Interest Rate:                              10 7/8%                            Redemption Price:  See Below
Interest Payment Dates:                     April 15, and October 15
Record Dates:                               April 1 and October 1
</TABLE>

                     The Security is not a Discount Security
              within the meaning of the within-mentioned Indenture.

                                 ---------------

                                                           CUSIP No. ___________

        10 7/8% General and Refunding Mortgage Notes, Series E, due 2009

No. ___                                                              $__________

promises to pay to ______ or registered assigns, the principal sum of __________
Dollars on October 15, 2009.

     1.   Interest. Nevada Power Company, a Nevada corporation (the "Company"),
promises to pay interest on the principal amount of this Series E Note at
10 7/8% per annum, from October 29, 2002 until maturity and shall pay the
Liquidated Damages payable pursuant to Section 5 of the Registration Rights
Agreement referred to below. The Company shall pay interest and Liquidated
Damages, if any, semi-annually in arrears on April 15 and October 15 of each
year, or if any such day is not a Business Day, on the next succeeding Business
Day (each an "Interest Payment Date"). Interest on the Series E Notes shall
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from Original Interest Accrual Date specified above;
provided that if there is no existing Default in the payment of interest, and if
this Series E Note is authenticated between a record date referred to on the
face hereof and the next succeeding Interest Payment Date, interest shall accrue
from such next succeeding Interest

                                      A-1

<PAGE>

Payment Date, except in the case of the original issuance of Series E Notes, in
which case interest shall accrue from the Original Interest Accrual Date
specified above; provided, further, that the first Interest Payment Date shall
be April 15, 2003. The Company shall pay interest (including postpetition
interest in any proceeding under the Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at the rate borne on the Series E
Notes; it shall pay interest (including post-petition interest in any proceeding
under the Bankruptcy Law) on overdue installments of interest and Liquidated
Damages, if any, (without regard to any applicable grace periods) from time to
time on demand at the same rate to the extent lawful. Interest shall be computed
on the basis of a 360-day year of twelve 30-day months.

     2.   Method of Payment. The Company shall pay interest on the Series E
Notes (except Defaulted Interest) and Liquidated Damages to the Persons who are
registered Holders of Series E Notes at the close of business on the April 1 and
October 1 next preceding the Interest Payment Date, even if such Series E Notes
are canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 3.07 of the Indenture with respect to Defaulted
Interest. The Series E Notes shall be payable as to principal, premium and
Liquidated Damages, if any, and interest at the office or agency of the Company
maintained for such purpose within the City and State of New York, or, at the
option of the Company, payment of interest and Liquidated Damages may be made by
check mailed to the Holders of Series E Notes at their addresses set forth in
the register of Holders, and provided that payment by wire transfer of
immediately available funds shall be required with respect to principal of, and
interest, premium and Liquidated Damages on, all Global Notes and all other
Series E Notes the Holders of which shall have provided wire transfer
instructions to the Company or the Paying Agent. Such payment shall be in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

     3.   Paying Agent and Security Registrar. Initially, The Bank of New York,
the Trustee under the Indenture, shall act as Paying Agent and Security
Registrar. The Company may change any Paying Agent or Security Registrar without
notice to any Holder of Series E Notes. The Company or any of its Subsidiaries
may act in any such capacity.

     4.   Indenture; Security. This Series E Note is one of a duly authorized
issue of Securities of the Company, issued and issuable in one or more series
under and equally secured by a General and Refunding Mortgage Indenture, dated
as of May 1, 2001 (such Indenture as originally executed and delivered and as
supplemented or amended from time to time thereafter, together with any
constituent instruments establishing the terms of particular Securities, being
herein called the "Indenture"), between the Company and The Bank of New York,
Trustee (herein called the "Trustee," which term includes any successor Trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a description of the property mortgaged, pledged
and held in trust, the nature and extent of the security and the respective
rights, limitations of rights, duties and immunities of the Company, the Trustee
and the Holders of the Securities thereunder and of the terms and conditions
upon which the Securities are, and are to be, authenticated and delivered and
secured. The acceptance of this Series E Note shall be deemed to constitute the
consent and agreement by the Holder hereof to all of the terms and provisions of
the Indenture. This Series E Note is one of the series designated above. The
terms of the Series E Notes include those stated in the Indenture, the

                                      A-2
<PAGE>

Officer's Certificate dated October 29, 2002 (the "Officer's Certificate") and
those made part of the Indenture by reference to the Trust Indenture Act. The
Series E Notes are subject to all such terms, and Holders of Series E Notes are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Series E Note conflicts with the express provisions
of the Indenture or the Officer's Certificate, the provisions of the Indenture
and the Officer's Certificate shall govern and be controlling. The Series E
Notes are general obligations of the Company initially limited to $250,000,000
aggregate principal amount in the case of Series E Notes issued on the Issue
Date.

     All Outstanding Securities, including the Series E Notes, issued under the
Indenture are secured by the lien of the Indenture on the properties of the
Company described in the Indenture. The lien of the Indenture is junior, subject
and subordinate to the prior lien of the Indenture of Mortgage dated as of
October 1, 1953 between the Company and Deutsche Bank, as trustee.

     5.   Optional Redemption.

          (a)  Except as set forth in subparagraph (b) of this paragraph 5, the
Series E Notes shall not be redeemable at the Company's option prior to October
15, 2006. Thereafter, the Series E Notes shall be subject to redemption at any
time or from time to time at the option of the Company, in whole or in part, at
the redemption prices (expressed as percentages of principal amount) set forth
below plus accrued and unpaid interest and Liquidated Damages, if any, thereon,
to the applicable redemption date, if redeemed during the twelve-month period
beginning on May 1 of the years indicated below:

             YEAR                                             PERCENTAGE
             ----                                             ----------
             2006...................................           105.438%
             2007...................................           102.719%
             2008 thereafter........................           100.000%

          (b)  Notwithstanding the foregoing, at any time or from time to time
on or prior to October 15, 2005, the Company may on any one or more occasions
redeem up to 35% of the aggregate principal amount of Series E Notes at a
Redemption Price of 110.875% of the principal amount thereof, plus accrued and
unpaid interest, if any, and Liquidated Damages thereon, if any, to the
Redemption Date, with the net cash proceeds of any public or private offerings
of its Equity Interests or capital contribution to the Company's equity made
with net cash proceeds of an offering by Sierra Pacific Resources; provided that
at least 65% of the aggregate principal amount of Series E Notes remain
outstanding immediately after each occurrence of such redemption excluding
Series E Notes held by the Company and its Subsidiaries; and provided, further,
that each such redemption shall occur within 120 days of the date of the closing
of such offering.

     6.   Notice of Optional Redemption. Notice of optional redemption shall be
mailed at least 30 days but not more than 60 days before the Redemption Date to
each Holder whose Series E Notes are to be redeemed at its registered address.
Series E Notes in denominations larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000, unless all of the Series E Notes held by a
Holder are to be redeemed. On and after the redemption date, interest and
Liquidated Damages, if any, cease to accrue on Series E Notes or portions
thereof called for redemption.

                                      A-3

<PAGE>

     7.   Mandatory Redemption.

          (a)  Other than in connection with clause (b) below or in connection
with a redemption at the option of the Holders of the Series E Notes, the
Company shall not be required to make mandatory redemption or sinking fund
payments with respect to the Series E Notes.

          (b)  Upon the occurrence of the events described below in clauses (1)
or (2) of this paragraph 7(b), the Company shall be required to redeem the
Series E Notes immediately, at a Redemption Price equal to 100% of the aggregate
principal amount of the Series E Notes plus accrued and unpaid interest and
Liquidated Damages, if any, on the Series E Notes to the date of redemption,
without further action or notice on the part of the Trustee or the Holders of
the Series E Notes:

          (1)  the Company or any of its Subsidiaries that is a Significant
Subsidiary or any group of Subsidiaries that, taken as a whole, would constitute
a Significant Subsidiary pursuant to or within the meaning of Bankruptcy Law:

               (I)   commences a voluntary case,

               (II)  consents to the entry of an order for relief against it in
                     an involuntary case,

               (III) consents to the appointment of a custodian of it or for all
                     or substantially all of its property,

               (IV)  makes a general assignment for the benefit of its
                     creditors, or

               (V)   admits in writing of its inability to pay its debts
                     generally as they become due; or

          (2)  a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:

               (I)   is for relief against the Company or any of its
                     Subsidiaries that is a Significant Subsidiary or any group
                     of Subsidiaries that, taken as a whole, would constitute a
                     Significant Subsidiary in an involuntary case;

               (II)  appoints a custodian of the Company or any of its
                     Subsidiaries that is a Significant Subsidiary or any group
                     of Subsidiaries that, taken as a whole, would constitute a
                     Significant Subsidiary or for all or substantially all of
                     the property of the Company or any of its Subsidiaries that
                     is a Significant Subsidiary or any group of Subsidiaries
                     that, taken as a whole, would constitute a Significant
                     Subsidiary; or

                                      A-4
<PAGE>

               (III) orders the liquidation of the Company or any of its
                     Subsidiaries that is a Significant Subsidiary or any group
                     of Restricted Subsidiaries that, taken as a whole, would
                     constitute a Significant Subsidiary;

               and the order or decree remains unstayed and in effect for 60
               consecutive days.

     8.   Redemption at the Option of Holders. Upon the occurrence of any of the
following Triggering Events: (a) failure for 30 days to pay when due interest
on, or Liquidated Damages with respect to, the Series E Notes; (b) failure to
pay when due the principal of, or premium, if any, on the Series E Notes; (c)
failure by the Company or any of its Restricted Subsidiaries to comply with the
provisions described in Sections 1(u)(i), 1(u)(ii) or 1(u)(vi) of the Officer's
Certificate; (d) failure by the Company or any of its Restricted Subsidiaries
for 30 days after notice to comply with the provisions described in Section
1(h)(iii) or (iv) of the Officer's Certificate; (e) failure by the Company or
any of its Restricted Subsidiaries for 60 days after notice to comply with any
of the other agreements in the Officer's Certificate or the Series E Notes; (f)
default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money
borrowed by the Company or any of its Restricted Subsidiaries (or the payment of
which is guaranteed by the Company or any of its Restricted Subsidiaries)
whether such Indebtedness or guarantee now exists, or is created after the
original issue date of the Series E Notes, if that default (i) is caused by a
failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a "Payment Default") or (ii) results
in the acceleration of such Indebtedness prior to its express maturity, and, in
each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$15.0 million or more; (g) failure by the Company or any of its Subsidiaries to
pay final judgments aggregating in excess of $15.0 million, which judgments are
not paid, discharged or stayed for a period of 60 days; or (h) an event of
default under the First Mortgage Indenture (other than any such matured event of
default which (i) is of similar kind or character to the Triggering Event
described in (c) or (e) above and (ii) has not resulted in the acceleration of
the securities outstanding under the First Mortgage Indenture); provided,
however, that, anything in the Officer's Certificate to the contrary
notwithstanding, the waiver or cure of such event of default under the First
Mortgage Indenture and the rescission and annulment of the consequences thereof
under the First Mortgage Indenture shall constitute a cure of the corresponding
Triggering Event and a rescission and annulment of the consequences thereof, the
Holders of at least 25% in principal amount of the Series E Notes then
Outstanding may deliver a notice to the Company requiring the Company to redeem
the Series E Notes immediately at a Redemption Price equal to 100% of the
aggregate principal amount of the Series E Notes plus accrued and unpaid
interest and Liquidated Damages, if any, on the Series E Notes to the Redemption
Date. The Holders of a majority in aggregate principal amount of the Series E
Notes then Outstanding by notice to the Company and the Trustee may on behalf of
the Holders of all of the Series E Notes waive any existing Triggering Event and
its consequences except a continuing Triggering Event related to the payment of
interest or Liquidated Damages on, or the principal of, the Series E Notes. In
the case of any Triggering Event occurring on or after October 15, 2006 by
reason of any willful action or inaction taken or not taken by or on behalf of
the Company with the intention of avoiding payment of the premium that the
Company would have had to pay if the Company then had elected to redeem the
Series E Notes pursuant to the provisions of Section 1(g)(i) of the Officer's
Certificate relating to redemption at the option of the Company, an equivalent
premium shall also become and be immediately due and payable to the extent
permitted by law upon the redemption of the Series E Notes at the option of the
Holders thereof. If a Triggering Event occurs prior to October 15, 2006, by
reason of any willful

                                      A-5
<PAGE>

action or inaction taken or not taken by or on behalf of the Company with the
intention of avoiding the prohibition on redemption of the Series E Notes prior
to October 15, 2006, then the premium specified in Section 1(g)(ii) of the
Officer's Certificate shall also become immediately due and payable to the
extent permitted by law upon the redemption of the Series E Notes at the option
of the Holders thereof. Upon becoming aware of any Triggering Event, the Company
shall deliver to the Trustee a statement specifying such Triggering Event.

     9.   Original Issue Discount. The Series E Notes have been issued with
original issue discount ("OID") for United Stated federal income tax purposes.
Upon written request, a representative of the Company will, beginning no later
than 10 days after the Original Interest Accrual Date, promptly inform a Holder
of the Series E Notes of the amount of OID as well as the issue price, the
Original Interest Accrual Date and yield to Maturity of the Series E Notes.
Holders may contact Nevada Power Company, P.O. Box 230, 6226 W. Sahara Avenue,
Las Vegas, Nevada 89146, Attention: Treasurer.

     10.  Denominations, Transfer, Exchange. The Series E Notes are in
registered form without coupons in denominations of $1,000 and integral
multiples of $1,000. The transfer of Series E Notes may be registered and Series
E Notes may be exchanged as provided in the Indenture and the Officer's
Certificate. The Security Registrar and the Trustee may require a Holder of
Series E Notes, among other things, to furnish appropriate endorsements and
transfer documents and the Company may require a Holder of Series E Notes to pay
any taxes and fees required by law or permitted by the Indenture. The Company
need not exchange or register the transfer of any Series E Note or portion of a
Series E Note selected for redemption, except for the unredeemed portion of any
Series E Note being redeemed in part. Also, it need not exchange or register the
transfer of any Series E Notes for a period of 15 days before a selection of
Series E Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

     11.  Persons Deemed Owners. The registered Holder of a Series E Note may be
treated as its owner for all purposes.

     12.  Amendment, Supplement and Waiver. The Indenture permits, with certain
exceptions as therein provided, the Trustee to enter into one or more
supplemental indentures for the purpose of adding any provisions to, or changing
in any manner or eliminating any of the provisions of, the Indenture with the
consent of the Holders of not less than a majority in aggregate principal amount
of the Securities of all series then Outstanding under the Indenture, considered
as one class; provided, however, that if there shall be Securities of more than
one series Outstanding under the Indenture and if a proposed supplemental
indenture shall directly affect the rights of the Holders of Securities of one
or more, but less than all, of such series, then the consent only of the Holders
of a majority in aggregate principal amount of the Outstanding

                                      A-6
<PAGE>

Securities of all series so directly affected, considered as one class, shall be
required; and provided, further, that if the Securities of any series shall have
been issued in more than one Tranche and if the proposed supplemental indenture
shall directly affect the rights of the Holders of Securities of one or more,
but less than all, of such Tranches, then the consent only of the Holders of a
majority in aggregate principal amount of the Outstanding Securities of all
Tranches so directly affected, considered as one class, shall be required; and
provided, further, that the Indenture permits the Trustee to enter into one or
more supplemental indentures for limited purposes without the consent of any
Holders of Securities. The Indenture also contains provisions permitting the
Holders of a majority in principal amount of the Securities then Outstanding, on
behalf of the Holders of all Securities, to waive compliance by the Company with
certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Series E Note shall be conclusive and binding upon such Holder and upon all
future Holders of this Series E Note and of any Series E Note issued upon the
registration of transfer hereof or in exchange therefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Series E
Note.

     13.  Events of Default. If an Event of Default shall occur and be
continuing, the principal of this Series E Note may be declared due and payable
in the manner and with the effect provided in the Indenture.

     14.  No Recourse Against Others. As provided in the Indenture, no recourse
shall be had for the payment of the principal of or premium, if any, or interest
on any Securities, or any part thereof, or for any claim based thereon or
otherwise in respect thereof, or of the indebtedness represented thereby, or
upon any obligation, covenant or agreement under the Indenture, against, and no
personal liability whatsoever shall attach to, or be incurred by, any
incorporator, stockholder, officer or director, as such, past, present or future
of the Company or of any predecessor or successor corporation (either directly
or through the Company or a predecessor or successor corporation), whether by
virtue of any constitutional provision, statute or rule of law, or by the
enforcement of any assessment or penalty or otherwise; it being expressly agreed
and understood that the Indenture and all the Securities are solely corporate
obligations and that any such personal liability is hereby expressly waived and
released as a condition of, and as part of the consideration for, the execution
of the Indenture and the issuance of the Securities.

     15.  Authentication. Unless the certificate of authentication hereon has
been executed by the Trustee or an Authenticating Agent by manual signature,
this Series E Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

     16.  Transfer and Exchange.

          (a)  As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Series E Note is registrable in the
Security Register, upon surrender of this Series E Note for registration of
transfer at the Corporate Trust Office of The Bank of New York in New York, New
York or such other office or agency as may be designated by the Company from
time to time, duly endorsed by, or accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar duly
executed by, the Holder hereof or his attorney duly authorized in writing, and
thereupon one or more new Series

                                      A-7
<PAGE>

E Notes of this series of authorized denominations and of like tenor and
aggregate principal amount, will be issued to the designated transferee or
transferees.

          (b)  No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.

          (c)  Prior to due presentment of this Series E Note for registration
of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Series E Note is registered as
the absolute owner hereof for all purposes, whether or not this Series E Note be
overdue, and neither the Company, the Trustee nor any such agent shall be
affected by notice to the contrary.

     17.  Governing Law. THE SERIES E NOTES SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     18.  Definition of "Business Day" and Other Terms. As used herein,
"Business Day" shall mean any day, other than Saturday or Sunday, on which
commercial banks are open for business, including dealings in deposits in U.S.
dollars, in New York. All other terms used in this Series E Note which are
defined in the Indenture or the Officer's Certificate shall have the meanings
assigned to them in the Indenture or the Officer's Certificate, as applicable,
unless otherwise indicated.

     19.  Abbreviations. Customary abbreviations may be used in the name of a
Holder of Series E Notes or an assignee, such as: TEN COM (= tenants in common),
TEN ENT (= tenants by the entireties), JT TEN joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A
(= Uniform Gifts to Minors Act).

     20.  Additional Rights of Holders of Restricted Global Notes and Restricted
Definitive Notes. In addition to the rights provided to Holders of Series E
Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes shall have all the rights set forth in the Registration Rights
Agreement dated as of October 29, 2002 between Nevada Power Company and the
parties named on the signature pages thereof (the "Registration Rights
Agreement").

     21.  CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Series E Notes and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders of Series E Notes.
No representation is made as to the accuracy of such numbers either as printed
on the Series E Notes or as contained in any notice of redemption and reliance
may be placed only on the other identification numbers placed thereon.

                                      A-8
<PAGE>

         The Company shall furnish to any Holder of Series E Notes upon written
request and without charge a copy of the Indenture and/or the Registration
Rights Agreement. Requests may be made to:

                              Nevada Power Company
                                  P.O. Box 230
                              6226 W. Sahara Avenue
                             Las Vegas, Nevada 89146
                              Attention: Treasurer.

                                      A-9
<PAGE>

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

                                      NEVADA POWER COMPANY

                                      By:  ____________________________________
                                           Richard K. Atkinson
                                           Vice President, Investor Relations
                                           and Treasurer

                          CERTIFICATE OF AUTHENTICATION

         This is one of the Securities of the series designated therein referred
to in the within-mentioned Indenture.

Dated:  October __, 2002
                                      THE BANK OF NEW YORK, as Trustee

                                      By:  ______________________________
                                           Authorized Signatory

                                      A-10
<PAGE>
            SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE***

         The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of
another Global Note or Definitive Note for an interest in this Global Note, have
been made:

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------
                                                                        PRINCIPAL AMOUNT OF
                                                                         THIS GLOBAL NOTE         SIGNATURE OF
                          AMOUNT OF DECREASE     AMOUNT OF INCREASE       FOLLOWING SUCH      AUTHORIZED SIGNATORY
                          IN PRINCIPAL AMOUNT    IN PRINCIPAL AMOUNT       DECREASE (OR        OF TRUSTEE OR NOTE
   DATE OF EXCHANGE       OF THIS GLOBAL NOTE    OF THIS GLOBAL NOTE         INCREASE)              CUSTODIAN
---------------------------------------------------------------------------------------------------------------------
<S>                       <C>                    <C>                     <C>                  <C>

</TABLE>

--------
*** This should be included only if the Note is issued in global form.

                                      A-11

<PAGE>

                                 ASSIGNMENT FORM

     To assign this Series E Note, fill in the form below: (I) or (we) assign
and transfer this Series E Note to

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint_________________________________________________________
to transfer this Series E Note on the books of the Company. The agent may
substitute another to act for him.

--------------------------------------------------------------------------------

Date:
Your Signature:_________________________________________________________________
           (Sign exactly as your name appears on the face of this Series E Note)

                               SIGNATURE GUARANTEE

--------------------------------------------------------------------------------
                    Signatures must be guaranteed by an "eligible guarantor
                    institution" meeting the requirements of the Security
                    Registrar, which requirements include membership or
                    participation in the Security Transfer Agent Medallion
                    Program ("STAMP") or such other "signature guarantee
                    program" as may be determined by the Security Registrar in
                    addition to, or in substitution for, STAMP, all in
                    accordance with the Securities Exchange Act of 1934, as
                    amended.

                                      A-12
<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

     If you want to elect to have this Series E Note purchased by the Company
pursuant to Section 1(h)(iii) (Offer to Purchase upon Change of Control) or
1(h)(iv) (Offer to Purchase Upon Application of Excess Proceeds) of the
Officer's Certificate, check the box below:
<TABLE>
<S>                                                <C>
     [ ] Section 1(h)(iii) (Offer to Purchase      [ ]  Section 1(h)(iv) (Offer to Purchase
         upon Change of Control)                        Upon Application of Excess Proceeds)
</TABLE>

         If you want to elect to have only part of the Series E Note purchased
by the Company pursuant to Section 1(h)(iii) (Offer to Purchase upon Change of
Control) or 1(h)(iv) (Offer to Purchase Upon Application of Excess Proceeds) of
the Indenture, state the amount you elect to have purchased:

         $_________________________

Date:

Your Signature:
                ----------------------------------------------------------------
            (Sign exactly as your name appears on the face of the Series E Note)

Tax Identification No.:
                       ---------------------------------------------------------

                               SIGNATURE GUARANTEE

--------------------------------------------------------------------------------
                    Signatures must be guaranteed by an "eligible guarantor
                    institution" meeting the requirements of the Security
                    Registrar, which requirements include membership or
                    participation in the Security Transfer Agent Medallion
                    Program ("STAMP") or such other "signature guarantee
                    program" as may be determined by the Security Registrar in
                    addition to, or in substitution for, STAMP, all in
                    accordance with the Securities Exchange Act of 1934, as
                    amended.

                                      A-13<PAGE>
                                                                     Exhibit 4.3

                          SIERRA PACIFIC POWER COMPANY

                              OFFICER'S CERTIFICATE

                                October 30, 2002

     I, the undersigned officer of Sierra Pacific Power Company (the "Company"),
do hereby certify that I am an Authorized Officer of the Company as such term is
defined in the Indenture (as defined herein). I am delivering this certificate
pursuant to the authority granted in the Board Resolutions of the Company dated
September 10, 2002, and Sections 1.04, 2.01, 3.01, 4.01(a) and 4.02(b)(i) of the
General and Refunding Mortgage Indenture dated as of May 1, 2001, as heretofore
supplemented to the date hereof (as heretofore supplemented, the "Indenture"),
between the Company and The Bank of New York, as Trustee (the "Trustee"). Terms
used herein and not otherwise defined herein shall have the meanings assigned to
them in the Indenture, unless the context clearly requires otherwise. Based upon
the foregoing, I hereby certify on behalf of the Company as follows:

     1.   The terms and conditions of the Securities of the series described in
this Officer's Certificate are as follows (the lettered subdivisions set forth
in this Paragraph 1 corresponding to the lettered subdivisions of Section 3.01
of the Indenture):

     (a)  The Securities of the third series to be issued under the Indenture
     shall be designated "General and Refunding Mortgage Bonds, Series C, due
     October 31, 2005" (the "Bonds").

     (b)  The Bonds shall be authenticated and delivered in the aggregate
     principal amount of $100,000,000.

     (c)  Not applicable.

     (d)  The principal of all Bonds shall be payable by the Company in whole or
     in installments on such date or dates as the Company has any obligations
     under the Term Loan Agreement dated as of October 30, 2002 (the "Loan
     Agreement") among the Company, Lehman Brothers Inc., as advisor, sole lead
     arranger and sole bookrunner, Lehman Commercial Paper Inc., as
     administrative agent (in such capacity, the "Administrative Agent") and as
     syndication agent and the other financial institutions or entities party
     thereto from time to time (the "Lenders") to repay any Loans (as defined in
     the Loan Agreement) to the Lenders (whether upon scheduled maturity,
     optional prepayment, required prepayment, acceleration, demand or
     otherwise), but not later than October 31, 2005. The amount of principal of
     the Bonds payable by the Company on any such date shall equal the aggregate
     principal amount of the Loans (as defined in the Loan Agreement) due and
     payable on such date pursuant to the Loan Agreement (but, in no event,
     shall exceed the aggregate principal amount of the Bonds). The obligation
     of the

<PAGE>

     Company to make any payment of the principal on the Bonds shall be fully or
     partially, as the case may be, deemed to have been paid or otherwise
     satisfied and discharged to the extent that the Company has paid the
     principal then due and payable on the Loans made pursuant to the Loan
     Agreement. If a Default (as defined in the Loan Agreement) in the payment
     of principal of any Loans shall occur under Section 7(a) of the Loan
     Agreement, it shall be deemed to be a default, for the purposes of Section
     10.01(b) of the Indenture, in payment of an amount of principal of the
     Bonds equal to the amount of such unpaid principal of the Loans (but, in no
     event, in excess of the aggregate principal amount of the Bonds).

     (e)  The Bonds shall bear interest from the time hereinafter provided at
     such rate per annum as shall cause the amount of interest payable on each
     Interest Payment Date (as hereinafter defined) on the Bonds to equal the
     amount of interest, fees or such other amounts payable by the Company on
     such Interest Payment Date under the Loan Agreement. Such interest on the
     Bonds shall be payable on the same dates as interest and, fees or such
     other amounts are payable by the Company from time to time under the Loan
     Agreement (each such date herein called an "Interest Payment Date"), until
     the maturity of the Bonds, or, in the case the Administrative Agent shall
     demand redemption of the Bonds, until the redemption date, or, in the case
     of any default by the Company in the payment of the principal due on the
     Bonds, until the Company's obligation with respect to the payment of such
     principal shall be discharged as provided in the Indenture. The amount of
     interest, fees or such other amounts payable by the Company from time to
     time under the Loan Agreement, the basis on which such interest, fees and
     such other amounts are computed and the dates on which such interest, fees
     and such other amounts are payable are set forth in the Loan Agreement.
     Each Bond shall bear interest (a) from the most recent Interest Payment
     Date, or (b) if no interest has been paid on the Bond, then from the date
     of the initial authentication of the Bond. The obligation of the Company to
     make any payment of interest on the Bonds shall be fully or partially, as
     the case may be, deemed to have been paid or otherwise satisfied and
     discharged to the extent that the Company has paid the interest on the
     Loans and fees then due and payable pursuant to the Loan Agreement. If a
     Default (as defined in the Loan Agreement) in the payment of interest, fees
     or such other amounts by the Company shall occur under Section 7(a) of the
     Loan Agreement, it shall be deemed to be a default, for purposes of Section
     10.01(a) of the Indenture, in the payment of an amount of interest on the
     Bonds equal to the amount of such unpaid interest on the Loans, fees and
     such other amounts.

     (f)  The Corporate Trust Office of The Bank of New York in New York, New
     York shall be the place at which (i) the principal of and interest on the
     Bonds shall be payable, (ii) registration of transfer of the Bonds may be
     effected, (iii) exchanges of the Bonds may be effected and (iv) notices and
     demands to or upon the Company in respect of the Bonds and the Indenture
     may be served; and The Bank of New York shall be the Security Registrar for
     the Bonds; PROVIDED, HOWEVER, that the Company reserves the right to
     change, by one or more Officer's Certificates, with the consent of the
     Administrative Agent, any such place or the Security Registrar; and
     provided, further, that the Company reserves the right to designate, by one
     or more Officer's Certificates, its principal office in Reno, Nevada as any
     such place or itself as the Security Registrar; PROVIDED, HOWEVER,

                                       2
<PAGE>

     that there shall be only a single Security Registrar for the Bonds. The
     principal of the Bonds shall be payable without the presentment or
     surrender thereof.

     (g)  Not applicable.

     (h)  Not applicable.

     (i)  The Bonds are issuable only in denominations of $100,000,000.

     (j)  Not applicable.

     (k)  Not applicable.

     (l)  Not applicable.

     (m)  See subsections (d) and (e) above.

     (n)  Not applicable.

     (o)  Not applicable.

     (p)  Not applicable.

     (q)  The Bonds shall be evidenced by a single registered Bond in the
     principal amount and denomination of One Hundred Million Dollars
     ($100,000,000). The Bonds shall be dated October 30, 2002, shall mature no
     later than October 31, 2005 unless sooner paid, and shall bear interest at
     the rate specified in subsection (e) above. The Bonds may be executed by
     the Company and delivered to the Trustee for authentication and delivery.
     The principal of and interest on the Bonds shall be payable at the
     Corporate Trust Office of the Trustee in New York, New York.

          The single Bond shall be identified by the number C-1 and shall upon
     issuance be delivered by the Company to, and registered in the name of, the
     Administrative Agent, on behalf of itself and the Lenders, and shall be
     transferable only as required to effect an assignment thereof to a
     successor or an assign of the Administrative Agent under the Loan
     Agreement. The Bonds are to be delivered to the Administrative Agent as
     security for the payment by the Company of its Obligations (as defined in
     the Loan Agreement). The single Bond shall be held by the Administrative
     Agent subject to the terms of the Bond Delivery Agreement, dated as of
     October 30, 2002, between the Company and the Administrative Agent.

          Bonds issued upon transfer shall be numbered consecutively from C-2
     upwards and issued in the same $100,000,000 denomination.

          See also subsection(s) below.

     (r)  Not applicable.

                                       3
<PAGE>

     (s)  The holder of the Bond by acceptance of the Bond agrees to
     restrictions on transfer and to waivers of certain rights of exchange as
     set forth herein. In addition, the Bond has not been registered under the
     Securities Act of 1933 and the Bond may not be transferred without
     compliance with applicable securities laws. The Bond is not transferable
     except to a successor to the Administrative Agent under the Loan Agreement.

     (t)  For purposes of the Bonds, "Business Day" shall mean any day that is
     not a Saturday, Sunday or other day on which commercial banks in Los
     Angeles, California or New York, New York are authorized or required by law
     to remain closed.

     (u)  The Trustee may conclusively presume that the obligation of the
     Company to pay the principal of and interest on the Bond shall have been
     fully satisfied and discharged unless and until it shall have received a
     written notice from the Administrative Agent, signed by an authorized
     officer of the Administrative Agent and attested by the Secretary or an
     Assistant Secretary of the Administrative Agent, stating that the payment
     of principal of or interest on the Bond has not been fully paid when due
     and specifying the amount of funds required to make such payment.

          The Bonds shall have such other terms and provisions as are provided
     in the form thereof attached hereto as EXHIBIT A, and shall be issued in
     substantially such form.

     2.   The undersigned has read all of the covenants and conditions contained
in the Indenture, and the definitions in the Indenture relating thereto,
relating to the issuance of the Bonds and in respect of compliance with which
this certificate is made.

          The statements contained in this certificate are based upon the
familiarity of the undersigned with the Indenture, the documents accompanying
this certificate, and upon discussions by the undersigned with officers and
employees of the Company familiar with the matters set forth herein.

          In the opinion of the undersigned, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenants and conditions have been complied with.

          In the opinion of the undersigned, such conditions and covenants have
been complied with.

                                       4

<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Officer's
Certificate as of the date first written above.

                                   By:
                                      ------------------------------------------
                                       Name:  Richard K. Atkinson
                                       Title: Vice President, Investor Relations
                                              and Treasurer

Received on
October __, 2002

THE BANK OF NEW YORK,
as Trustee

By:       -------------------------------------------
Name:     Stacey B Poindexter
Title:    Assistant Treasurer

                                       5

<PAGE>

                                    EXHIBIT A

                                  FORM OF BONDS

                                 SEE EXHIBIT 4.4

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