Document:

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                                                                [EXECUTION COPY]

                                                                    Exhibit 10.1

                           WAIVER LETTER AND AMENDMENT

                                                April 4, 2002

Nevada Power Company
c/o Sierra Pacific Resources
6100 Neil Road
P.O.Box 30150
Reno, Nevada 89520
Attention:  Richard K. Atkinson

        Re:  $200,000,000 Nevada Power Company Credit Facility
             -------------------------------------------------

     Reference is hereby made to the Credit Agreement, dated as of November 30,
2001, among Nevada Power Company ("NPC" or the "Borrower"), Union Bank of
California, N.A., as Sole Bookrunner and Administrative Agent, Wells Fargo Bank,
N.A., as Syndication Agent, Bank One, NA, BNP Paribas and Mellon Bank, N.A., as
Co-Documentation Agents, and the Lenders party thereto from time to time (the
"NPC Credit Agreement"). Unless otherwise defined herein, capitalized terms used
herein shall have the meanings set forth in the NPC Credit Agreement.

     As a result of NPC's recent rate case decisions by the Public Utilities
Commission of Nevada ("PUCN") rendered in response to certain rate increase and
deferred energy expense recovery requests made by NPC, the downgrading of the
Index Debt and other circumstances that have occurred prior to the date hereof
(collectively, the "MAC Event"), the Required Lenders have determined, and NPC
agrees and acknowledges, that there has occurred (i) an event, act or
circumstance that would reasonably be expected to have a Material Adverse Effect
and/or (ii) a material adverse change in the business, operations, condition
(financial or otherwise), or prospects of NPC and its Subsidiaries, taken as a
whole (clauses (i) and (ii) being hereinafter referred to, collectively, as the
"Material Adverse Change"). As a result of the MAC Event, NPC is presently
unable to satisfy certain conditions precedent to the receipt of Loans under the
NPC Credit Agreement, including those specified at Sections 4.02(b) (including
by virtue of Section 3.09) and 4.02(e) thereof (such conditions precedent being
referred to herein, collectively, as the "MAC Condition").

     The Required Lenders have agreed to waive the MAC Condition to the extent
of the MAC Event solely for purposes of any Borrowing, conversion or
continuation of Loans now or hereafter requested under the NPC Credit Agreement,
such waiver to become effective only

<PAGE>

upon the delivery to NPC by the Administrative Agent on or before April 4, 2002
of written notice stating that all of the following conditions precedent have
been satisfied (and, in the case of any amendments to the NPC Credit Agreement
set forth below, that this Waiver Letter and Amendment (this "Letter Agreement")
has been executed and delivered by NPC and the Required Lenders) or waived in
writing by the Required Lenders:

     (1) NPC and the Required Lenders agree that Section 9.10 of the NPC Credit
     Agreement is hereby amended by adding the following sentence at the end
     thereof: "Notwithstanding the foregoing, no Lender may exercise any right
     of set-off pursuant to this Section or under applicable law and apply such
     set-off to any portion of the Obligations without the prior written consent
     of the Required Lenders."

     (2) The original General and Refunding Mortgage Bond(s), and copies of all
     other documents, required to be delivered under Sections 4.01(p) and
     6.09(b) of the NPC Credit Agreement in connection with the issuance of the
     General and Refunding Mortgage Bonds (the "Bond Documents") shall have been
     executed and delivered to the Administrative Agent and shall be in form and
     substance satisfactory to the Required Lenders; provided, that the pledge
     agreement referenced in Section 4.01(p) shall not be delivered or shall be
     modified to the satisfaction of the Administrative Agent and the Required
     Lenders to eliminate the pledge of the General and Refunding Mortgage
     Bonds, it being the intent of the parties that the bonds being so issued
     shall for all purposes be deemed presently, unconditionally and
     definitively issued to the Administrative Agent, for the benefit of the
     Lenders, as a registered holder, and not subject to any pledge.

     (3) NPC and the Required Lenders agree that Section 6.02 of the NPC Credit
     Agreement is hereby amended by adding the following sentence at the end
     thereof: "Notwithstanding the foregoing, the Borrower shall not, and shall
     not permit any of its Subsidiaries to, at any time create, incur, assume or
     suffer to exist any Lien on any of its Properties (now owned or hereafter
     acquired) in favor of its power and/or commodity trading counterparties or
     power suppliers to secure any obligations now or hereafter owing to such
     power and/or commodity trading counterparties or power suppliers. The
     Borrower shall not issue any additional First Mortgage Bonds pursuant to
     the First Mortgage Indenture on or after April 4, 2002."

     (4) NPC and the Required Lenders agree that Section 9.12(c)(i) of the NPC
     Credit Agreement is hereby amended by deleting the phrase "the Borrower (so
     long as no Default or Event of Default shall have occurred and be
     continuing) and".

     (5) NPC and the Required Lenders agree that Section 2.01 of the NPC Credit
     Agreement is hereby amended by adding the following sentence at the end
     thereof: "Notwithstanding anything to the contrary contained herein, the
     sum of (i) the aggregate outstanding amount of commercial paper notes
     issued by the

<PAGE>

     Borrower and (ii) the aggregate outstanding principal amount of Loans under
     this Agreement shall not exceed $200,000,000 at any time."

     (6) NPC and the Required Lenders agree that Section 2.06 of the NPC Credit
     Agreement is hereby amended by adding the following new subsection (g) at
     the end thereof:

          "(g) MANDATORY COMMITMENT REDUCTION. In the event that the Borrower
          issues or causes to be issued after April 4, 2002 General and
          Refunding Mortgage Bonds (other than General and Refunding Mortgage
          Bonds in the aggregate principal amount not exceeding $130,000,000 to
          secure 6.20% Senior Unsecured Notes, Series B due April 15, 2004
          issued by the Borrower) in an aggregate cumulative principal amount in
          excess of $250,000,000, (i) the Borrower shall immediately and from
          time to time upon any such issuance pay principal in an amount equal
          to such excess to the Administrative Agent to be applied as a
          mandatory prepayment of the Loans, together with accrued interest
          thereon and any amount owing under Section 2.13, and (ii) the
          Commitments shall be immediately and permanently reduced by the amount
          of such excess."

     (7) NPC agrees to pay to the Administrative Agent and the Lenders upon
     demand all of the expenses (including, without limitation, reasonable fees
     and disbursements of counsel) incurred by the Administrative Agent and the
     Lenders in connection with this Letter Agreement in accordance with Section
     9.04 of the NPC Credit Agreement.

     (8) As previously offered by Sierra Pacific Resources ("SPR"), the SPR
     Credit Agreement, and all "Commitments" thereunder, shall be irrevocably
     terminated by SPR pursuant to the terms thereof and all amounts payable
     thereunder shall be paid in full.

     (9) NPC agrees to cause its counsel to deliver to the Administrative Agent
     within five Business Days after the date hereof, legal opinions in form and
     substance satisfactory to the Administrative Agent and its counsel with
     respect to this Letter Agreement and the issuance of the Bond Documents.

     (10) NPC shall have delivered to the Administrative Agent satisfactory
     written evidence of authority to execute and deliver this Letter Agreement.

     By its execution of this Letter Agreement, NPC acknowledges and agrees that
the Material Adverse Change has occurred and that it cannot satisfy the MAC
Condition, and that the Lenders have no obligation to lend or permit conversions
or continuations under the NPC Credit Agreement. NPC acknowledges by its
execution of this Letter Agreement that the Required Lenders will waive the MAC
Condition and allow NPC to obtain, convert and continue Loans, subject to the
terms and conditions of the NPC Credit Agreement, solely in consideration of the
contemporaneous delivery of the Bond Documents and the satisfaction of the other

<PAGE>

conditions set forth above. The contemporaneous satisfaction of each of the
conditions above is a material inducement to the provision of this waiver.

     Without limitation of the definition of "Material Adverse Change" contained
herein, NPC acknowledges and agrees that any material adverse change to the pro
forma financial information heretofore delivered by NPC to the Lenders and set
forth in Exhibit A attached hereto shall constitute a material adverse change in
the business, operations, condition (financial or otherwise), or prospects of
NPC and its Subsidiaries, taken as a whole.

     With respect to any Borrowing Request made by NPC on the date hereof, the
Required Lenders hereby waive the prior day notice requirements set forth in
Section 4.02 of the NPC Credit Agreement and agree to allow the same day notice
for such borrowing.

     The parties hereto agree and acknowledge that this Letter Agreement
satisfies the notice requirement under Section 5.01(f) of the NPC Credit
Agreement with respect to the MAC Event.

     The waiver of the MAC Condition set forth herein is limited as specified
herein and shall not constitute a modification, acceptance or waiver of, or
consent to, any other provision of the NPC Credit Agreement other than as
specified herein. In particular, except as expressly set forth herein, this
Letter Agreement shall not operate as a waiver by the Lenders of their right to
declare that any condition precedent to borrowing under the NPC Credit Agreement
(other than the MAC Condition) has not been satisfied or that a Material Adverse
Change (other than the MAC Event) has occurred.

     Except as expressly provided herein, this Letter Agreement shall not limit
or otherwise adversely affect any right, power or remedy of the Lenders or the
Administrative Agent under the NPC Credit Agreement or any other Loan Document.
The Lenders and the Administrative Agent reserve the right to insist on strict
compliance with the terms of the NPC Credit Agreement and the other Loan
Documents, and NPC expressly acknowledges such reservation of rights. The grant
of the waiver set forth herein will not, either alone or taken with other
waivers of provisions of the NPC Credit Agreement or any other Loan Document, be
deemed to create or be evidence of a course of conduct. Any future or additional
waiver of any provision of the NPC Credit Agreement or any other Loan Document
shall be effective only if set forth in a writing separate and distinct from
this Letter Agreement and executed by the appropriate parties.

     Upon the effectiveness of this Letter Agreement, each reference in the NPC
Credit Agreement to "this Agreement", "hereunder", "hereof" or words of like
import referring to the NPC Credit Agreement shall mean and be reference to the
NPC Credit Agreement, as amended by this Letter Agreement.

     This Letter Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York. This Letter Agreement may be executed
in any number of counterparts, each of which shall be an original and all of
which, when taken together, shall constitute one agreement. Delivery of an
executed signature page of this Letter Agreement by facsimile transmission shall
be effective as delivery of a manually executed counterpart hereof.

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This Letter Agreement may be amended solely by an instrument in writing executed
by NPC, the Administrative Agent and the Required Lenders. NPC acknowledges that
the purpose of this Letter Agreement, among other things, is to preserve the
rights of the Lenders under the NPC Credit Agreement.

                                    UNION BANK OF CALIFORNIA, N.A., as
                                    Administrative Agent and as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title

                                    WELLS FARGO BANK,  N.A., as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    BANK ONE, NA, as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    BNP PARIBAS, as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    MELLON BANK, N.A., as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    BAYERISCHE LANDESBANK GIROZENTRALE,
                                    as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

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                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    THE INDUSTRIAL BANK OF JAPAN, LIMITED,
                                    as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    LEHMAN COMMERCIAL PAPER INC., as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    WACHOVIA BANK, NATIONAL ASSOCIATION,
                                    formerly known as First Union National
                                    Bank, as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:

                                    MERRILL LYNCH BANK USA, as a Lender

                                    By:
                                       -----------------------------------------
                                        Name:
                                        Title:
Agreed and Acknowledged:

NEVADA POWER COMPANY

By:
   --------------------------
     Name:
     Title:<PAGE>

                                                                    Exhibit 10.2

                 INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS
                                 LOCAL UNION 396

                                     [LOGO]

                                    IBEW 396
                              3520 BOULDER HIGHWAY
                               LAS VEGAS, NV 89121
                                 (702) 457-3011

                          EFFECTIVE 2/1/2002 - 2/1/2005

                                     [LOGO]

                              NEVADA POWER COMPANY
                                6226 W SAHARA AVE
                               LAS VEGAS, NV 89103
                                 (702) 367-5000

<PAGE>

                                    AGREEMENT

This Agreement, made and entered into as of FEBRUARY 1, 2002, by and between
Nevada Power Company, a corporation, hereinafter referred to as the Company, and
Local Union No. 396 of the International Brotherhood of Electrical Workers, an
affiliate of the A.F.L./C.I.O., hereinafter referred to as the Union.

                                   WITNESSETH

Whereas, for the purpose of facilitating the peaceful adjustments of differences
that may arise from time to time between the parties hereto, and to promote
harmony and efficiency to the end that the Company, the Union and the general
public may mutually benefit. Now therefore, in consideration of the provisions,
covenants and conditions herein contained, the parties hereto agree as follows,
to-wit:

                                  ARTICLE NO. 1
              INTRODUCTION/CONTINUITY OF SERVICE/NON-DISCRIMINATION

1.1        INTRODUCTION: The Company, in Clark and Nye counties, in the state of
           Nevada, a public utility engaged in the service of generating,
           transmitting and distributing electric power and energy, hereby
           recognizes Local Union No. 396 of the International Brotherhood of
           Electrical Workers, A.F.L./C.I.O., as the exclusive bargaining agent
           for its employees who are employed in Customer Service, Energy
           Services, LGS Billing, Districts, Material/Warehousing, Reprographic
           Services, Mail Room/Receiving Departments, Line, Fleet Services,
           Meter Services, Communications, Materials, Generation, Substations,
           and Survey Organizations excluding all supervisory, confidential and
           professional employees within the meaning of the National Labor
           Relations Act, such covered employees more specifically defined in
           Exhibit I (CLASSIFICATION DESCRIPTIONS), for the purpose of
           collective bargaining with respect to rates of pay, wages, hours of
           employment and other conditions of employment which may be subject to
           collective bargaining.

1.2        CONTINUITY OF SERVICE: It is mutually recognized that the interest of
           the Company, the Union and the welfare of the general public,
           requires the continuous rendering of service by the Company, and the
           parties agree that recognition of such obligations of continuous
           service is imposed upon both the Company and its employees.

           The Company, to facilitate the continuous performance of such
           service, agrees to meet with the Business Manager of the Union or his
           designated representative in reference to any matter within the scope
           of the Agreement, and agrees that it will cooperate with the Union in
           its efforts to promote harmony and efficiency among all of the
           employees of the Company.

<PAGE>

           The Union agrees that the employees covered by this Agreement, will
           not be called upon or permitted to cease or abstain from the
           continuous performance of the duties pertaining to the positions held
           by them with the Company. The Company agrees to do nothing to provoke
           interruption of or to prevent such continuity of performance as
           required in the normal and usual operations of the Company's
           property. It is mutually agreed that any difference that may arise
           between the above parties shall be settled in the manner hereinafter
           provided.

           The Union agrees that the employees covered by this Agreement will
           individually and collectively perform loyal and efficient work and
           service and that they will cooperate in promoting and advancing the
           welfare of the Company and the protection of its service to the
           public at all times.

           The Union agrees that there will be no strikes, stoppages of work or
           slowdowns of the Company's operations during the term of this
           Agreement, and the Company agrees that there will be no lockouts
           during the term of this Agreement.

1.3        NON-DISCRIMINATION: Neither the Company nor the Union will
           discriminate against any employee in the application of the terms of
           this Agreement because of race, religion, sex, age, color, national
           origin, veteran status, disability or any other legally protected
           status. It is understood that job titles used in this Agreement,
           which indicate the male gender, are not intended to restrict
           classifications to employees of the female gender.

1.4        LAWS: It is understood and agreed that if mandatory laws or
           government rules or regulations applicable to or in conflict with any
           of the provisions of this Agreement become effective and binding upon
           the parties, such conflicting provisions of this Agreement shall be
           subject to modification as required and the parties shall meet and
           confer to determine mutually agreeable language to conform to the
           laws, government rules and/or regulations.

           If laws, government rules and/or regulations hereafter enacted
           require changes in the structure and/or services provided by the
           Company, then the Company and Union will, upon mutual consent, reopen
           negotiations concerning the terms of this Agreement that are directly
           affected by the changes.

1.5        AMENDMENT: This Agreement shall be subject to amendment at any time
           by mutual consent of the parties. Such amendment must be written,
           state the effective date of the amendment, and be executed in the
           same manner as this Agreement.

<PAGE>

                                  ARTICLE NO. 2
                                 UNION SECURITY

2.1        UNION DUES: The Company shall deduct money from Union employees'
           wages and pay it to the proper officers of the Union, provided the
           employee who is a member of the Union individually and voluntarily
           authorized such deduction to be made. The form of the check-off
           authorization is attached to this Agreement as Exhibit III (CHECK OFF
           AUTHORIZATION). The Union shall hold the Company free and harmless
           from any claims or damages from any party whatsoever for making
           deductions and shall indemnify the Company against any and all claims
           or damages, which may originate from the dues check-off process.

2.2        NEW EMPLOYEES: The Company agrees to notify the Union of the name and
           address of new employees within thirty, (30) days of their date of
           hire. The Union Business Manager and / or a designated representative
           and the Human Resources Representative will participate jointly in
           New Employee Orientation; this will provide an overview of Nevada
           work law and the goals and responsibilities of both the Union and the
           Company.

                                  ARTICLE NO. 3
                        EXCLUSIVE FUNCTIONS OF MANAGEMENT

3.1        BUSINESS MANAGEMENT: The supervision and control of all operations
           and the direction of all working forces, including the right to hire,
           to suspend or discharge for proper cause, to transfer employees, to
           relieve employees from duty because of lack of work and for other
           legitimate reasons, is vested exclusively in the Company.

3.2        DISCIPLINE: The Company retains the right to exercise discipline in
           the interest of good service and the proper conduct of its business,
           provided an employee who has been laid off, discharged, or
           disciplined shall be advised of the reason or reasons for such action
           and shall be allowed suitable representation, if so desired, at the
           time such reasons are provided. Furthermore, should the employee or
           the Union feel that the terms or conditions of this Agreement have
           been violated, either shall be entitled to grieve such action in
           accordance with the provisions set forth in Article 8 (GRIEVANCE
           PROCEDURE) of the Agreement.

                                  ARTICLE NO. 4
                                 UNION ACTIVITY

<PAGE>

4.1        UNION BUSINESS: An employee who requests time off for Union
           activities, in addition to regular time off, shall be granted such
           request if such time off will not inconvenience the operations of the
           Company or increase its operating expenses; provided further, that
           such employee shall receive no compensation from the Company for such
           time off.

           UNION STEWARD BUSINESS: The Union steward shall, upon request to the
           supervisor, be allowed reasonable time during regular working hours,
           without loss of pay, to attend to Union matters on the job, provided
           such time is not used for solicitation of membership or collection of
           dues, and does not interfere with regular work schedules.

4.2        BULLETIN BOARDS: The Company agrees to permit the Union to use
           reasonable space for the purpose of posting officially signed Union
           bulletins upon the bulletin boards and/or electronic mail, which are
           furnished by the Company.

4.3        CONTRACTING WORK:  REFER TO ALL TABS

                                  ARTICLE NO. 5
                               STATUS OF EMPLOYEES

5.1        EMPLOYEE STATUS DESIGNATION: REFER TO TABS

5.2        APPLICATION REFERRAL: The Company recognizes the Union as a valuable
           source for employment referrals, due to the mutual interest in the
           profitability of the Company. As such, when additional employees are
           needed to do work which comes under this Agreement, the Company will
           indicate its requirements, relative to knowledge, skills, and
           abilities, and will give the Union an equal opportunity to refer
           applicants for employment. The Company retains the right to evaluate
           each candidate and make the final hiring decision.

5.3        TEMPORARY LAYOFF PROVISIONS: In recognition of the competitive nature
           of the utility business, innovative solutions are required when
           unforeseen challenges present themselves. Accordingly, there may be
           operational circumstances that would permit the temporary layoff of
           employees for short-term periods of time, out of line of seniority,
           on a voluntary basis. These provisions are detailed in Exhibit IV
           (TEMPORARY LAYOFF PROVISIONS) of this Agreement.

5.4        LAYOFF PROVISIONS:
           DEFINITION OF QUALIFIED: For purposes of defining "qualified", as
           used in this Article, the definition shall be that an employee is
           qualified to perform any position, in either Collective Bargaining
           Agreement, which the employee has

<PAGE>

           previously occupied at the Company or any position that is an equal
           or lower classification.

           NOTIFICATION: If it becomes necessary for the Company to layoff
           regular employees due to lack of work, the Company shall give
           affected employees as much notice as possible; but in no event shall
           employees receive less than twenty-one (21) calendar days notice of
           layoff. Where temporary, part-time and probationary employees are
           involved, no notice of layoff is required.

           SENIORITY: Layoff in all cases due to lack of work will be determined
           by Company seniority within the classification affected by the
           layoff. If two (2) or more employees have the same Company seniority
           date, the following process will be used for breaking the tie:
           Alphabetically by Hired Last Name ... if last names are the same,
           then First Name ...if last name and first name are the same, Middle
           Name; if last name, first name and middle name are the same, month,
           day of birth, and year will be used. Employees who are to be laid-off
           will be permitted to displace a less senior person in any
           classification for which they are qualified.

           RETURN TO BARGAINING UNIT: A member of the bargaining unit being
           transferred to a non-represented position shall retain Company
           seniority for all purposes including layoff, if the employee is
           returned to the bargaining unit within one (1) year of the initial
           transfer. Employees who leave employment for any reason and return to
           the bargaining unit within 12 months or less will have their time
           bridged for seniority, vacation, sick leave, and benefits. There will
           be no probationary period.

           FOUR (4) YEAR QUALIFIER: Any MPAT employee of the Company who accepts
           a position in the bargaining unit will establish a new date of
           seniority for the purpose of future layoffs, except as defined above.
           This date will reflect the day in which these employees accept such a
           position and will be effective for four (4) years. If there is a
           reduction in classifications in the bargaining unit, these employees
           will use the above-mentioned date as their seniority date for the
           purpose of this reduction or layoff. After four (4) years of service
           in the bargaining unit, any employee impacted by this language, will
           be credited with all Company seniority for the purposes of reduction
           in classification or layoff.

           RECALL: In the event of a recall, the Company shall provide
           notification to affected employees by certified mail to their address
           of record. Such employees must keep the Company informed of the
           address where they can be reached. Recalled employees must report to
           work no later than fourteen (14) calendar days from the date the
           certified letter was mailed. Employees who do not report to work
           within fourteen (14) days from the date the letter was mailed will be
           considered a voluntary quit. Employees will only be considered for
           recall to the classification from which they were laid-off, unless
           they make a written application within fourteen (14) calendar days
           from the date of notification of

<PAGE>

          layoff, to human resources, for any other position for which they are
          qualified. Applications that do not meet this time frame will only be
          considered after all timely applications have been honored. Employees
          must submit a written notice to human resources to rescind their
          application for consideration for previously held positions prior to
          formal notification of return to work. Any employee who refuses a
          recall to any requested position will be considered a voluntary quit
          and will waive all recall rights to any other position. Employees who
          have displaced a less senior person in any classification shall be
          given an offer to return to their former jobs if the vacancy is in
          their former classification. Recall rights shall cease on any layoff
          in excess of twelve (12) months.

          TEMPORARY RECALL: In the event of a temporary recall, in accordance
          with Article 4.3 (Contracting Work), an employee may decline such
          temporary recall without waiving their rights for recall to a regular
          position, provided the temporary assignment is for less than ninety
          (90) days. If an employee accepts a temporary assignment, all benefits
          will be reinstated upon return to work and they will have recall
          rights for one(1) year from the date of any subsequent layoff. This
          right does not expire until the employee has returned to work or
          refused an offer to return to work. Any subsequent layoff will not
          create a liability for an additional severance benefit in accordance
          with this Article.

          EMPLOYMENT STATUS: Any regular employee who is laid-off due to lack of
          work has a right to replace any part-time or temporary employee within
          (5) working days after notification of layoff, provided the regular
          employee is qualified to perform the duties of the position filled by
          the temporary employee. If a regular employee is laid-off because of
          lack of work and is subsequently offered and accepts the first recall
          for employment within one (1) year after layoff, the employee shall
          resume the status of regular employee and shall be credited with
          Company seniority previously accrued. Employees who are recalled in a
          classification previously held, or for one in which they are
          qualified, will not be required to serve another probationary period
          and will be eligible for benefits immediately. However, employees who
          leave the service of the Company due to voluntary severance in
          accordance with this Article, or layoff and who are re-hired after one
          (1) year from the date of layoff or severance shall not be credited
          with Company seniority at the time of re-employment and shall be
          required to serve a new probationary period. Upon completion of five
          (5) years of subsequent service, an adjusted date of hire will be
          calculated crediting actual time worked with the Company. This date
          will be used for the purposes of Company seniority and all related
          benefits.

5.5       SEVERANCE:
          BARGAINING UNIT SEVERANCE PAY PLAN: Severance Provision is for
          employees laid off due to lack of work. For the duration of the
          severance benefit period, employees will receive medical/dental/vision
          benefits based on whatever plan they were enrolled in at the time of
          layoff provided that they make any required premium contributions.

<PAGE>

           # Of weeks for each full year of continuous service (Max. 17 years) +
           Minimum # of weeks of severance One (1) = Maximum # of weeks of
           severance Eighteen (18)

           ENHANCED SEVERANCE & RETIREMENT BRIDGE PROGRAM: Employees are
           eligible for "enhanced severance & retirement bridge program" options
           if they are determined to be no longer required due to displacement
           as a result of sale, divestiture, merger, bankruptcy or any other
           business event as defined by the Company. Affected employee is
           defined as an employee in a specific classification and location.
           Employees who qualify for 85 point early retirement provision will be
           eligible for severance pay, if they choose to retire in lieu of
           exercising their "bumping rights".

           NOTIFICATION  OF INDIVIDUALS:  Company will notify Union and
           employees  affected by the event as soon as possible.

           PLACEMENT: The Company and the Union will work to place affected
           employees in available positions for which they are qualified.
           Volunteers will be requested and selected by Company seniority. If
           there are no volunteers, reverse seniority will be used to select
           employees for the enhanced severance and retirement bridge program.

           Employees may be offered a comparable position, defined as the same
           headquarters location and wage (i.e. comparable or higher wage if
           qualified) The Employee will have 5 (five) working days to notify the
           Company of their decision. If the employee accepts the position, it
           will be awarded to them at the appropriate wage rate. If the Employee
           refuses the position, the Employee will be terminated with no
           severance. Any severance payment will be paid during the next regular
           pay period following the date of layoff.
           Employees may be offered a non-comparable position (defined as
           requiring relocation of greater than a 35 mile radius and/or a wage
           reduction): The Employee will have five (5) working days to notify
           the Company of his/her decision to accept the offer at the
           appropriate wage rate.
           If the Employee accepts and is awarded the position, he/she will be
           eligible for re-training, if required, and up to $2000 relocation
           expense. If the Employee declines, he/she will be eligible for:

           ENHANCED SEVERANCE DEFINED AS:

           -    Two (2) weeks of base pay for each year of service, with a
                maximum of 52 weeks.
           -    A lump sum payment of $4,500 for training or outplacement
                services.
           -    Six (6) months of Company paid COBRA

                                       OR

<PAGE>

           RETIREMENT BRIDGE OPTIONS:
           An affected Employee who has achieved eighty (80) points in
           combination of age and credited service at the time they are affected
           will not have to reach the minimum age 55 requirement for retirement
           or post retirement medical. The employee's retirement benefit will be
           reduced by 5% per year for each year under age 62

                                    EXAMPLE:
                    An employee who is age 49 with 31 years of service (for a
                    total of 80 points) at the time they are affected would be
                    eligible to "retire" and receive post retirement medical.

          An affected employee may add the following schedule of points to
          either their age or years of service or a combination thereof to
          affect their retirement eligibility. The employee must achieve a
          minimum age of 55 (including points) with at least ten (10) years of
          service to be eligible to retire and receive post retirement medical.

                             Years of Service         Points
                                     0-9                 0
                                   10-14                 3
                                   15-19                 4
                                     20+                 5

                                    EXAMPLE:

                         An employee who is age 52 with 28 years of service at
                    the time they are affected can add 3 points to their age and
                    effectively become age 55 and 2 points to their years of
                    service, which gives them 85 points. This qualifies them for
                    an unreduced full retirement at the time they retire.

         Employees can select only one option - either Severance or Retirement
         Bridge. Employees who are eligible to retire without using the
         Retirement Bridge Program are still eligible for severance pay. If
         employee declines Enhanced Severance and Retirement Bridge Program
         options, they will be eligible for consideration under Article 5.4
         "bumping rights".

         The severance calculation will apply with one (1) week per year with a
         minimum of one (1) week severance, i.e. a one-year employee would
         receive two (2) weeks of severance pay. Rehire rights will be limited
         to one (1) year. The Company will provide a list of affected employees
         and listings of job openings as they occur. The Union will be
         responsible for monitoring the program. When an employee exercises
         Article 5.4 "bumping rights", the affected employee (bumped employee)
         will start at the "placement" step of the enhanced severance and
         retirement bridge program.

<PAGE>

         See EXHIBIT A     ARTICLE No. 5.5 Severance Flow Chart

5.6      AFFILIATE COMPANY: It shall not be deemed a severance for the purposes
         of this Article if an employee is transferred to an affiliate of the
         Employer, which is bound to this Agreement provided that the Collective
         Bargaining Agreement covers the Employee's new position, and is the
         same as the position held before the transfer.

                                    EXHIBIT A
                                 ARTICLE NO. 5.5
                              SEVERANCE FLOW CHART

                                     [CHART]

                                  ARTICLE NO. 6
                         WORKING HOURS AND RATES OF PAY

ALTERNATIVE SHIFTS:
It is understood that with a thirty (30) day notice the Company or the Union may
notify each other and discontinue use of alternative shifts.

                                 (REFER TO TABS)

                                  ARTICLE NO. 7
                            SENIORITY AND PROMOTIONS

7.1        SENIORITY: There shall be one (1) type of seniority, namely, Company
           seniority. Company seniority shall be considered in such matters as
           retirement, lay off, and whenever provisions of this Agreement refer
           to seniority. In cases, where two (2) or more employees have the same
           Company seniority date, the following process will be used for
           breaking the tie: Alphabetically by hired last name ... if last names
           are the same, then first name ... if last name and first name are the
           same, middle name; if last name, first name and middle name are the
           same, month, date of birth, and year will be used.

7.2        SENIORITY POSTINGS: The Company shall post a Company seniority list
           on bulletin boards every six (6) months and shall mail a copy of this
           list to the

<PAGE>

           Union when the list is posted and after any corrections are made.
           Any seniority corrections should be made in writing to Human
           Resources.

7.3        STAFFING VACANCIES:
           POSTING REQUIREMENT: When there are no qualified employees who have
           requested an intra-departmental work location change into job
           vacancies, which are expected to last for more than ninety (90) days,
           the Company shall post such job vacancies or new jobs on bulletin
           boards and electronic mail for a period of fourteen (14) calendar
           days. It shall be the duty of the Company to set forth in said
           bulletins the nature of the job, its location and duties, reasonable
           qualifications required and the rate of pay, unless such information
           is listed in the collective bargaining Agreement. At the same time,
           the Company will furnish the Union a copy of this bulletin. Employees
           may file their applications in the Human Resources department by
           Company mail or by U.S. mail. However, the Company may not consider
           any application received after the job bid closing date. All job
           vacancies must be awarded within twenty-one (21) calendar days of the
           job bid closing date. If the award is not made within twenty-one (21)
           calendar days, and is not delayed due to vacations or bid hearings,
           the successful employee will be paid the new rate for the period from
           the twenty-one (21) days to the date of the award. This does not
           apply to the time frame of up to three (3) weeks after the award for
           the purpose of transitioning responsibilities.

           JOB POSTING SYSTEM: The Company shall publish job posting and
           awarding procedures, which, at a minimum, comply with the provisions
           of this Agreement. These procedures will constitute the Company's job
           posting system. Any bargaining unit employee covered by the
           Collective Bargaining Agreement may apply and compete equally for any
           position within the Company. Employees are disqualified from bidding
           if they have a letter of discipline, which is less than one (1) year
           old in their Human Resources personnel file.

           SELECTION  CRITERIA:  Exclusive of the  provisions  of Articles 7.9
           (INTRA-DEPARTMENTAL  WORK  LOCATION CHANGE), in filling vacancies the
           following factors shall be considered:
                - Trade Knowledge
                - Training
                - Past performance with the Company
                - Ability, skill, adaptability, efficiency
                - In addition, the Company retains the right to administer
                  equally fair tests, demonstrations, or physical assessments
                  when such tests will assist materially in determining the
                  qualifications of employees.

           When, in the discretion of the Company, all factors are substantially
           equal, Company seniority shall govern.

<PAGE>

           INTERVIEW: If an interview is scheduled, then the Company will
           contact the Union Business Manager or Assistant Business Manager at
           least three (3) days prior to any scheduled interviews. The Union
           Business Manager or designated representative will observe as a
           neutral.

           HEARING PROCEDURES: In lieu of any grievance procedure concerning
           Article 7.3 (STAFFING VACANCIES), the Company shall offer the three
           (3) most senior bidders (if applicable) and the employee with the
           second highest matrix score (if applicable) who are more senior than
           the successful bidder a hearing before the bid committee with the
           steward for the department, the senior person or persons and one (1)
           other Union member. If the number of senior bidders exceeds the
           parameters mentioned above, a group meeting will be conducted with
           the remaining senior bidders to explain the decision and answer any
           relevant questions. The Company shall not assume any penalty for bid
           hearings that are delayed.

           NO QUALIFIED BIDDERS: If no applications are received from any
           qualified bargaining unit employees within the posting period, before
           filling the position from outside of the bargaining unit, the Company
           shall follow the provisions described in the Transfer Policy.

7.4        TEMPORARY APPOINTMENTS: Wherever a vacancy occurs in any job
           classification, the Company may, at its discretion, temporarily fill
           such vacancy. If practical, any such temporary appointment shall be
           given to an employee who would be eligible under the provisions of
           this Agreement, however this will not conflict with Clerical Article
           5.1 (Employee Status Designation).

7.5        MOVING EXPENSES:  Should the Company assign an employee, who has not
           volunteered, for reassignment, to an established Company headquarters
           located more than thirty (30) driving miles by the most reasonable
           route from his regularly established Company headquarters, and such
           assignment is not temporary in nature, the Company will pay the
           employee $2000 for moving expenses, for the purpose of establishing a
           new primary residence, within a two (2) month period immediately
           following such assignment. In addition, the Company shall pay the
           actual costs to relocate a mobile home, which is the employee's
           primary residence.

7.6        SUBDEPARTMENTS: REFER TO TABS

7.7        TIME IN CLASSIFICATION PAY: When employees are awarded bids in a
           different sub- department from which they are working, their rate of
           pay for the awarded job shall be the rate established for the
           classification as listed in the appropriate Agreement. If an employee
           has previously occupied the position, the employee shall be given
           credit for time spent in that position for the purposes of
           establishing the new rate. Where the awarded job has more than one
           rate, such rates being based on time spent in classification,
           employees

<PAGE>

           shall be assigned the starting rate for the new classification unless
           such rate will result in a lesser rate than their former
           classification. If assigning the starting rate to employees awarded
           the job would result in a lesser rate than their last rate, employees
           shall be granted one (1) year of credit or the amount of their
           Company seniority, which ever is less, as time spent in the new
           classification for the purpose of establishing their new rate of pay.

7.8        TRIAL PERIOD: Employees promoted or transferred in accordance with
           this Article shall be employed on the job to which they were promoted
           or transferred for a reasonable trial period not to exceed six (6)
           months. If, following the trial period, they are still unable to
           perform the job to which they are promoted or transferred, they shall
           be returned to the former job classification they held or to their
           former or another job classification of similar requirements and the
           previous rate of pay, as determined by the Company. Employees who are
           returned to another classification in accordance with this Article
           shall not be permitted to bid on another position for six (6) months
           from the time they are returned. Employees who voluntarily return to
           their former job classification within ninety (90) days shall be
           returned to their former job classification or another job
           classification of similar requirements, as determined by the Company,
           and at their previous rate of pay. If a vacancy does not exist at the
           time that the employee volunteers to return, he/she will be returned
           to their former job classification or another job classification of
           similar requirements when a vacancy exists.

                                    EXAMPLE:
            An FSR is awarded an apprentice position. Before 90 days,
             he decides that he no longer wants to be an apprentice.
               He is then returned to an FSR position (or similar
                     position) at his previous rate of pay.

                                    EXAMPLE:
  an FSR is awarded an apprentice position. After 90 days but before 6 months,
       he decides that he no longer wants to be an apprentice; he is then
              returned to an AFR position at the AFR rate of pay.

7.9        INTRA-DEPARTMENTAL WORK LOCATION CHANGES: REFER TO TABS

                                  ARTICLE NO. 8
                               GRIEVANCE PROCEDURE

8.1        DEFINITION: A grievance shall be defined as a dispute regarding the
           interpretation and application of the provisions of this Agreement
           filed by the Union or by an employee covered by this Agreement
           alleging a violation of the terms and provisions of this Agreement.
           However, disputes specifically excluded in other Articles of this
           Agreement from the Grievance Procedure shall not be construed as
           within the definition set forth above.

<PAGE>

8.2        TIME LIMITATIONS: The Company and the Union recognize the mutual
           gains process as an effective tool in resolving differences in the
           work place. Once timely notification of a grievance has been given,
           the Union and Company may mutually agree to extend the time
           limitations to ensure that interests are clearly defined, witnesses
           and all persons involved receive proper notification and are able to
           attend, evidence is accurate, and remedies are thoroughly explored
           before moving to the next step. However, it is in the interest of
           both the Company and the Union to expedite the process and encourage
           the timely resolution of the issue in order to satisfy established
           time constraints.

           The Union and Company, by mutual Agreement, may elect to bypass
           certain steps, due to the nature of the grievance.

           Except by mutual Agreement to extend the time limitations, an
           arbitrator shall not have the authority to excuse a failure by the
           Union, the Company or the aggrieved employee to comply with the time
           limitations set forth, regardless of the reason given for such
           failure.

8.3        GRIEVANCE PROCESS:
           NOTIFICATION: When a dispute arises relative to the administration of
           the provisions of this Agreement, the employee and/or Union Steward
           must complete a mutual gains issue form and submit it to the
           appropriate supervisor for signature no later than thirty (30)
           calendar days after the grievance first arises. The time period shall
           start from the first day the Company can show that the Union or an
           employee affected by the Company's action knew or should have known
           of the situation.

           It is in the best interest of both parties to keep the same Steward
           involved from start to finish. The Company will make a reasonable
           effort to use the same Steward throughout the process. The time
           limitations may be extended to accommodate this provision.

           At each step in the process, the Union shall officially sign off on
           the mutual gains issue and grievance forms, verifying that their
           interests have been satisfied or to pursue resolution at the next
           step.

           STEP ONE (MUTUAL GAINS MEETING - SUPERVISOR): The supervisor shall
           schedule a meeting with the grievant and steward within seven (7)
           calendar days of receipt of the mutual gains issue form. The grievant
           and the supervisor will define interests and work on resolving the
           issue in a manner satisfying those interests. If the issue is not
           resolved at step one (1), the mutual gains issue form may be referred
           by the Union to the next level of supervision within three (3)
           calendar days of the step one (1) meeting.

           STEP TWO (MUTUAL GAINS MEETING - LEVEL II SUPERVISION): The next
           level of supervision shall schedule a meeting with the grievant,
           steward, and

<PAGE>

           supervisor within seven (7) calendar days of receipt of the mutual
           gains issue form. The grievant and supervision will define interests
           further and work on resolving the issue at this level. If they are
           unable to satisfy interests, the Union may request a formal hearing
           within three (3) calendar days of the step two (2) meeting.

           STEP THREE (MUTUAL GAINS HEARING):
           The level II supervisor shall schedule a hearing with the grievant,
           steward, supervisor, and official Union and Human Resources
           representatives (HR Partner and Senior Labor Relations Consultant)
           within seven (7) calendar days of receipt of the mutual gains issue
           form. Witnesses will be designated to testify and related evidence
           shall be submitted. Those in attendance shall discuss possible
           remedies, which will be implemented upon final approval by the
           official Union and Labor Relations representatives. This joint
           decision shall be final and binding on all parties. If, at the
           conclusion of step three (3), the two (2) parties are unable to
           resolve the issue, the grievance shall be reduced to writing on the
           grievance report form, citing the Article and/or section of this
           Agreement which has been allegedly violated, and the Company shall
           sign, date, and acknowledge receipt of such grievance.

           STEP FOUR (UNION/COMPANY MEETING):
           The Union Business Manager and Director of Human Resources shall
           schedule a meeting within ten (10) calendar days of receipt of the
           grievance report form. The department supervisor and/or manager, and
           the grievant and/or Union steward and Union and Human Resources
           representatives who were present at step three (Mutual Gains Hearing)
           may be present at the request of either party. The Company and Union
           shall review the information provided, conduct further investigation
           if necessary, and shall render a joint decision which shall be final
           and binding on all parties. If the grievance is not settled at step
           four (4), the Company will communicate its position in writing within
           five (5) calendar days of the step four (4) meeting. This written
           notification will be sent via certified mail.

           STEP FIVE (ARBITRATION): Within fifteen (15) calendar days of receipt
           of management's position, the Union may request arbitration by
           delivering a written notice to the Labor Relations office of its
           intent to arbitrate the dispute. If the Union does not respond within
           fifteen (15) calendar days, the issues involved in the grievance will
           be considered resolved and the matter closed.

           Within five (5) working days after receipt of the notice of intent to
           arbitrate, the parties will request the Federal Mediation and
           Conciliation Service to furnish a list of five (5) arbitrators from
           the southwest region of the United States from which the arbitrator
           shall be selected. Such selection shall be accomplished by the Union
           and the Company striking one (1) name from the list in turn until
           only one (1) name remains.

<PAGE>

           In recognition of the magnitude of such decisions, arbitration
           relative to termination grievances shall be expedited whenever
           possible. Unless mutually agreed to extend the time limitations in
           writing, these grievances should be arbitrated within six (6) months
           of the termination date.

           The arbitrator's decision shall be submitted in writing and shall be
           final and binding on all parties to this Agreement. Nothing contained
           in this contract or any part thereof shall affect or apply to the
           Union in action it may take against the Company for failure to comply
           with any legally enforceable decision reached through arbitration.
           The cost of the arbitrator and the cost of necessary expenses
           required to pay for facilities and recording of the hearing of cases,
           shall be borne equally by the Company and the Union. The arbitrator
           shall not have the authority to modify, amend, alter, add to, or
           subtract from any provision of this Agreement.

                                  ARTICLE NO. 9
                                     SAFETY

9.1        MUTUAL INTERESTS: The Company and the Union share a mutual interest
           in fostering safe working conditions for all employees. The Company
           and the Union will endeavor to create programs, procedures and
           policies which will define Nevada Power Company and IBEW Local No.
           396 as leaders in providing and promoting a safe workplace. The
           Company shall make reasonable provisions for the safety of employees
           in the performance of their work. The Union shall cooperate in
           promoting the realization of the responsibility of the individual
           employee with regard to the prevention of accidents.

9.2        SAFETY COMMITTEE: Each department shall have their own Safety
           Sub-committee, and at least one (1) representative from each
           departmental Safety Sub-committee shall serve on the Company's Safety
           Committee. The selection of the Company's Safety Committee members
           shall be made jointly by the Chairman of the Committee and the
           Business Manager of the Union. The Chairman of this Committee shall
           be selected by the Company. Each year thirty three and one third
           percent (33-1/3%) of the Committee members shall be replaced in
           accordance with the selection provision.

9.3        REPORTING DEFICIENCIES: Each member of the Safety Committee shall be
           expected to actively participate in identifying and reporting to the
           area safety representative any deficiency or unsafe condition
           discovered in the assigned work area. Recommendations to improve the
           operational safety shall be made to the manager, safety services, and
           to the department supervisor. A copy shall also be presented to the
           Chairman at the next Safety Committee meeting.

<PAGE>

9.4        SAFETY MEETINGS:  The Chairman shall hold Safety meetings at
           reasonable intervals subject to call.

9.5        SEMI-ANNUAL INSPECTIONS: Every six (6) months the Safety Committee
           Chairman shall appoint at least three (3) members to perform an
           inspection of the Company facilities. If required, these inspections
           may occur more often at particular facilities. The Committee Chairman
           may request additional employees who work at the site to assist in
           the inspection. The Company will allow the appointees reasonable
           time, as determined by the Chairman, to perform this inspection. They
           will prepare a written report, including recommendations for
           corrective actions and forward it to the Committee Chairman and
           Company President.

9.6        RULE  VIOLATIONS: In the event employees violate safety rules
           published by the Company, the Company reserves the right to
           administer appropriate disciplinary action.

9.7        SAFETY INVESTIGATIONS: When a lost time disabling injury occurs as a
           result of a suspected careless act or unsafe working condition, a
           safety investigating committee shall be chaired by Safety Services to
           review the facts and reconcile safety deficiencies and recommend
           corrective action. A safety committee member designated by the Union
           and assigned to the work area in which the injury occurred, shall
           serve on the investigating committee.

9.8        INCLEMENT WEATHER: Employees who report for work on a scheduled work
           day and who, because of inclement weather or other similar cause, are
           unable to work in the field that day, shall receive pay for the full
           day. However, they may be held pending emergency calls and may be
           given first-aid, safety or other instruction, or they may be required
           to perform miscellaneous work in the yard, warehouse, or other
           sheltered locations. Through labor/management meetings, and in
           conjunction with safety services, each department shall establish
           policies, which clarify safe work procedures during inclement
           weather. Employees shall receive pay for time worked or time held on
           Company property or two (2) hours, which ever is greater.

9.9        RAIN GEAR: Employees who are required to work in the field will be
           assigned appropriate rain gear, which will be maintained by the
           employees and replaced by the Company when such gear is worn out in
           the course of employment and returned to the Company by the employee.

9.10       ENERGIZED PANELS: Employees who are assigned to work in the field
           will not be required to work on exposed and energized metering panels
           during rainy weather but may be assigned related duties as necessary.

9.11       HEALTH AND SAFETY: The parties hereto agree to cooperate in using all
           reasonable means to eliminate conditions of danger to either the
           general public,

<PAGE>

           the Company or its employees. No employee shall knowingly engage in
           an unsafe act. Whenever it becomes necessary to employ day shift
           employees assigned to the Company's business offices, where security
           personnel are assigned, outside the normal work hours, and such work
           is during the hours of darkness, all arrivals and departures from
           Company owned parking facilities shall be observed and controlled by
           security personnel. Parking facilities shall, when possible, be
           adjacent to the Company's business offices. The Company agrees to
           furnish such safety devices and equipment including first aid kits,
           as may be reasonable and necessary for the health and safety of its
           employees, and the Union agrees, on behalf of the employees, that
           such equipment will be used.

9.12       ALCOHOL AND DRUG ABUSE: An employee who seeks professional treatment
           to correct a problem of excessive use or dependence on an alcohol or
           other controlled substances will be placed on medical leave of
           absence for such treatment. Available unused sick leave may be used
           while under professional treatment. Arrangements for treatment must
           be made with the Employee Assistance Program (EAP) Provider and the
           Company and such treatments will be kept as confidential as possible.
           Employees who receive such treatment will be expected to observe all
           conditions and attend all meetings which are required as part of the
           total rehabilitation program. Evidence of abstinence may be required
           as a follow-up and negative findings may result in termination.

                                 ARTICLE NO. 10
                                    HOLIDAYS

10.1       ELIGIBLE EMPLOYEES: Regular employees and probationary employees, who
           are eligible for benefits, shall be entitled to holidays off with
           pay. Employees on leaves of absence or disability leave are not
           entitled to holiday pay, except if the employee begins leave or
           returns from leave during the week of a holiday.

10.2       WORKED HOLIDAYS: Shift employees may be permitted to take holidays
           off which fall on their scheduled workdays. Employees scheduled to
           work on a holiday shall be paid at the rate of time and one-half
           (1-1/2) for time worked during regular working hours in addition to
           holiday pay. Employees who are called out to work on a holiday shall
           be paid at the rate of double time for time worked in addition to
           holiday pay. Time worked in excess of the regular workday will be
           paid at the appropriate overtime premium. Except for shift employees,
           holidays shall not be considered scheduled workdays.

10.3       COMPANY HOLIDAYS: When a holiday falls on a Saturday, the preceding
           Friday shall be observed, and when a holiday falls on a Sunday the
           following Monday shall be observed. Whenever an employee's regular
           days off are other than Saturday and Sunday, the first day off within
           the workweek shall be

<PAGE>

           considered as Saturday and the second day off within the workweek
           shall be considered as Sunday for the purpose of this Article. A
           rotating shift employee working on a schedule which provides four (4)
           consecutive days off shall observe the day prior to the four (4) days
           if the holiday falls on the first of the four (4) days, and shall
           observe the day following the four (4) days if the holiday falls on
           any of the other three (3) days for the purpose of this Article.

10.4       FLOATING BIRTHDAY/HOLIDAY: An employee may observe the floating
           holiday on any workday of the year with mutual Agreement by the
           employee and supervisor. Or, with seven, (7) calendar day's notice,
           an employee shall observe the floating holiday on any workday, which
           falls in the same calendar week as the employee's birthday. For the
           purpose of this Article, the calendar week begins Sunday and ends
           Saturday. Should an employee be called in or required to work on a
           previously approved " holiday," the employee shall be paid the
           applicable overtime rate, except if both the employee and supervisor
           mutually agree to change the observance of the holiday. Employees who
           request to use their floating holiday for the purpose of recognizing
           a religious observance, will be accommodated whenever possible. Any
           difficulties in this regard should be forwarded to Human Resources.

-------------------------------------------------------------------------------
           HOLIDAYS               2002            2003             2004
-------------------------------------------------------------------------------
        New Years Day             Jan 1           Jan 1            Jan 1
-------------------------------------------------------------------------------
      Martin L King Day          Jan 21          Jan 20           Jan 19
-------------------------------------------------------------------------------
        Presidents Day           Feb 18          Feb 17           Feb 16
-------------------------------------------------------------------------------
         Memorial Day            May 27          May 26           May 31
-------------------------------------------------------------------------------
       Independence Day          July 4          July 4           July 5
-------------------------------------------------------------------------------
          Labor Day              Sept 2          Sept 1           Sept 6
-------------------------------------------------------------------------------
         Veterans Day            Nov 11          Nov 11           Nov 11
-------------------------------------------------------------------------------
       Thanksgiving Day          Nov 28          Nov 27           Nov 25
-------------------------------------------------------------------------------
     Thanksgiving Friday         Nov 29          Nov 28           Nov 26
-------------------------------------------------------------------------------
      Christmas Eve Day          Dec 24          Dec 24           Dec 23
-------------------------------------------------------------------------------
        Christmas Day            Dec 25          Dec 25           Dec 24
-------------------------------------------------------------------------------
  Floating Birthday\Holiday                 See Article 10.4
-------------------------------------------------------------------------------

10.5       BANKED HOLIDAYS: If eligible employees are required to work on any
           day observed as a holiday and are authorized to work for the straight
           time hourly rate of pay, then an equal number of hours will be
           allocated to their banked holiday account. With written consent of
           the Company, employees may carry over up to sixteen (16) hours of
           banked holidays to the next year.

10.6       PART-TIME, TEMPORARY AND BENEFIT INELIGIBLE EMPLOYEES: Part-time,
           temporary, and probationary employees will not receive pay for
           holidays not worked but shall be paid the appropriate overtime
           premium for all time worked on holidays.

<PAGE>

10.7       SICK LEAVE IN CONJUNCTION WITH A HOLIDAY: An employee who does not
           report for work either the day before and/or the day after a paid
           holiday, and who has not been excused by his or her supervisor for
           either the day before and/or the day after a paid holiday shall
           receive no pay for the holiday. The Company may require satisfactory
           evidence of an employee's illness or injury before holiday pay will
           be granted. If the Company requires medical evidence, the Company
           must inform the employee of the requirement to provide evidence no
           later than two (2) hours after the employee's regular starting time
           on the day of the absence. If required and the employee does not
           comply with this request, the employee will not be paid for the
           holiday or the day of absence, and may be subject to disciplinary
           action.

10.8       ALTERNATIVE SCHEDULES: As a result of the implementation of
           alternative work schedules, any issues associated with the provisions
           of Article 10 (Holidays) will be resolved by Memorandum of
           Understanding between the Company and the Union.

                                 ARTICLE NO. 11
                                    VACATIONS

11.1       CONSIDERATIONS: Vacation with pay may be granted at any time during
           the calendar year in which it is earned, subject to the following
           considerations.

                - Desirability of scheduling in such a manner as will cause a
                  minimum of interference with service to the Company's
                  customers, and;
                - The selection of all vacation periods based on the employee's
                  Company seniority, provided the selection is made no later
                  than March 31st.

11.2       FIRST TWO (2) CALENDAR YEARS OF EMPLOYMENT: Probationary and regular
           employees shall earn vacation during the first two (2) calendar years
           of their employment according to the month in which they are hired.
           Probationary and regular employees may request and be granted
           vacation anytime during this period.

           MONTH HIRED                                          VACATION HOURS
           -----------                                          --------------
           January....................................................80 hours
           February...................................................77 hours
           March......................................................73 hours
           April......................................................70 hours
           May........................................................67 hours
           June.......................................................63 hours
           July.......................................................60 hours
           August.....................................................57 hours
           September..................................................53 hours
           October....................................................50 hours

<PAGE>

           November...................................................47 hours
           December...................................................43 hours

                                    EXAMPLE:

               If an employee is hired March 2002, the employee is granted 73
               hours vacation to be used by December 31, 2003. New employees may
               carry their 73 hours vacation over in this scenario. In January
               2004, the second year of employment, the employee will be granted
               80 hours vacation to be used by December 31, 2004.

11.3       ACCRUED VACATION: Regular employees will be granted vacations, with
           straight time pay, according to the following schedule:

           AFTER CONTINUOUS SERVICE OF                        VACATION HOURS
           ---------------------------                        --------------
           2 years through 5 years..................................80 hours
           6 years through 12 years................................120 hours
           13 years through 20 years...............................160 hours
           21 years through 30 years...............................200 hours
           31 years and above......................................240 hours

11.4       VACATION ADJUSTMENTS: An employee's vacation accrual shall be
           adjusted for all periods of leave of absence including leaves for
           illness or injury as defined elsewhere in this Agreement by reducing
           the number of vacation hours accrued in direct proportion to the
           number of hours of leave within the employee's anniversary year. Such
           reductions shall be applied to any accrued and unused vacation
           available in the calendar year the adjustment is made, or when such
           adjustment exceeds the employee's available vacation, the excess
           shall be applied against the employee's next vacation accrual or the
           employee's final paycheck, whichever occurs first. It is understood
           that no adjustment to vacation accrual will be made for sick leave or
           during the first sixty (60) calendar days of any disability leave.

11.5       VACATION BONUS: In addition to the vacation accrued in accordance
           with the above schedule, (ARTICLE 11.3) any employee who completes
           ten (10) years continuous service and each five (5) years of
           continuous service thereafter, shall be granted a vacation bonus of
           forty (40) hours in the year such term of employment is attained. The
           vacation bonus will accrue, and may be taken subject to the
           provisions of this Article.

11.6       UNUSED VACATION: All unused or carried over vacation time accumulated
           in the year of termination of employment after an employee's first
           anniversary date, up to and including the employee's last day worked,
           shall be paid at termination of employment, at the employee's current
           base rate. This does not apply to the vacation bonus when the
           employee has not completed the minimum service specified.
                                    EXAMPLE:

<PAGE>

               An employee terminates employment in June, the employee will only
               receive vacation pay for six months of that year; i.e. the
               employees' vacation allotment is 120 hours a year at time of
               termination he will be eligible for 60 hours of pay provided he
               hasn't used any vacation.

           It is understood that employees may not carry vacation time over to
           the following year without the written consent of the Company. This
           does not apply to Article 11.2 (Vacation First Two (2) Calendar Years
           of Employment).

           A regular employee who has been laid off for lack of work and is
           recalled within one (1) year, who has in excess of one (1) year
           Company seniority, shall accrue vacation in accordance with Article
           11.4 (VACATION ADJUSTMENTS).

11.7       DEPARTMENTAL POLICIES: Each department will develop standards and
           procedures for scheduling vacations, which, at a minimum comply with
           Article 11.1 (CONSIDERATIONS).

11.8       HOLIDAY WHILE ON VACATION: If a holiday occurs on a workday during an
           employee's vacation, it shall not be counted as hours of vacation.
           The employee shall receive straight time pay for the holiday.

11.9       HOSPITALIZED WHILE ON VACATION: Employees on vacation who become
           hospitalized for at least one day, shall not be required to use
           vacation time during the period of incapacitation. Employees who are
           capable of completing any light duty must choose to remain on
           vacation or report for light duty.

11.10      CALL-OUT WHILE ON VACATION: An employee shall not be expected to work
           on his regularly scheduled days off immediately preceding or
           following pre-scheduled vacation. However, if an employee is called
           out and accepts such an assignment on the regularly scheduled days
           off immediately preceding or following pre-scheduled vacation, the
           employee shall receive the appropriate overtime rate for this work.
           An employee called out during scheduled vacation will be paid double
           time for all hours worked and the employee may reschedule the unused
           portion of his vacation hours in accordance with Article 11.1
           (CONSIDERATIONS) above, if the call-out was for work during the
           employee's normal work hours. Additionally, if the call-out creates
           rest time, the employee may reschedule vacation equal to the rest
           time earned from this assignment.

                                 ARTICLE NO. 12
                             SICK LEAVE / DISABILITY

INTRODUCTION
The Union agrees to share the responsibility in protecting the sick leave plan
from abuses by any of its members, recognizing that the plan is intended to
provide pay

<PAGE>

coverage under situations of actual need.

MEDICAL ATTENTION
Sick leave may be used for obtaining medical information or treatment including
exams or treatments for care of the eyes or teeth of eligible employees. Such
absences should be approved in advance where possible and limited to the time
necessary for treatment or examination or recovery.

12.1       ELIGIBILITY: A regular employee with more than 1040 hours shall be
           entitled to accumulate sick leave with pay at the rate of eight (8)
           hours of sick leave for each month worked.

12.2       NOTIFICATION AND VALIDATION: The Company may require satisfactory
           evidence of an employee's illness or disability before sick leave
           will be granted. If an employee abuses the sick leave provisions of
           this Agreement by misrepresentation or falsification, the employee
           shall restore to the Company all sick leave payments received as a
           result of such abuse. An employee must notify their supervisor or a
           member of management, or see that their supervisor is notified, as
           soon as it is apparent that the employee will be unable to report for
           work. The employee must provide this notification before the
           beginning of the normal workday. The employee should notify the
           supervisor as far in advance as possible of the expected date of
           return. Lack of notification without a reasonable explanation will
           result in denial of sick pay benefits.

12.3       EXCLUSIONS AND EXCEPTIONS. Employees shall not be entitled to sick
           leave while on vacations (except as provided in Article 11.9
           [HOSPITALIZED WHILE ON VACATION]), while temporarily laid off by the
           Company, during the period of notice of severance of employment, upon
           severance of employment, or while receiving disability payments or
           industrial compensation.

12.4       SICK LEAVE BONUS: Employees who are eligible for sick leave in
           accordance with Article 12.1 (ELIGIBILITY), who use no more than two
           hundred twenty (220) hours of sick leave each five (5) years, shall
           be granted a bonus of five (5) days vacation in addition to that
           granted under the provisions of Article 11.3 (ACCRUED VACATION), each
           five (5) years based on the following considerations:

                - On January 1, 1987, and January 1, of each fifth year
                  thereafter, the sick leave records of those employees with
                  hire dates prior to August 1, 1981, will be audited. Those
                  employees who have used no more than two hundred twenty (220)
                  hours of sick leave during the five (5) year period
                  immediately preceding the audit will be granted five (5) days
                  vacation to be taken within the twelve (12) month period
                  immediately following the audit date and in accordance with
                  the provisions of Article 11 (VACATIONS).

<PAGE>

                - For employees hired after July 31, 1981, their sick leave
                  records will be audited as of the first day following the
                  completion of five (5) years and six (6) months of service and
                  each fifth (5th) year following the initial audit. Those
                  employees who have used no more than two hundred twenty (220)
                  hours of sick leave during the five (5) year period
                  immediately preceding the audit will be granted five (5) days
                  vacation to be taken within the next twelve (12) month period
                  immediately following the audit in accordance with Article 11
                  (VACATIONS).

                - All unused vacation accumulated under the provisions of this
                  sick leave bonus plan shall be paid at termination of
                  employment as provided under Article 11.6 (UNUSED VACATION)
                  except that no pro rata of vacation entitlements will be
                  allowed for time periods of less than five (5) years.

12.5       LIGHT DUTY: Injured employees who are temporarily unable to perform
           the functions of their own jobs but are capable of performing light
           duty work shall be released for light duty assignments either within
           their own department or another area of the Company where work is
           available. In the interest of effective case management, the Human
           Resources department shall administer the light duty work program.
           Employees working in light duty assignments shall be eligible for a
           percentage of their base pay according to the following schedule:
                 -   100% of base pay for the first 90 calendar days
                 -   85% of base pay thereafter

           -   The employee must have a light duty work release from a doctor.
               The employee may be allowed to work overtime if it is a
               continuation of their shift. Employees on light duty will not be
               eligible for callouts or scheduled overtime. Any employee who
               returns to work for regular duty must have a full duty release
               from a doctor. Employees will be eligible for a full light duty
               benefit after they have worked thirty, (30) calendar days from
               the time of that release. If an employee returned to regular duty
               status works for less than thirty, (30) days and is then returned
               to light duty status for the same injury or illness, the employee
               will then continue with the original time period.

           Employees, who are injured on the job and are unable to perform
           their regular duties indefinitely due to partial disability, may be
           subject to the provisions outlined in Article 12.7 (JOB INCURRED
           INJURY/PARTIALLY DISABLED EMPLOYEES).

12.6       JOB INCURRED INJURY/SALARY PROTECTION: Any employee who suffers a
           job incurred injury during the term of this Agreement and who is
           awarded temporary total compensation benefits as defined in the
           Nevada

<PAGE>

           Industrial Insurance Act shall receive supplemental disability
           payments in such amounts and under such conditions as described
           below:

           -   The combined amount of disability compensation to which the
               employee is entitled under any federal, state, and local law, and
               from the Company shall not exceed the percent of the employee's
               weekly earnings, from the table listed below, where such earnings
               are computed at the employee's regular rate for a forty (40)
               hour, seven (7) day period.

           -   Supplemental payments shall be made for the first day recognized
               by the Workers' Compensation Administration, and shall terminate
               with the date of the last day of disability recognized by the
               Workers' Compensation Administration, as evidenced by the
               remittance portion of the disability check from the Workers'
               Compensation Administration, which must be presented to the
               Company, for a maximum period of benefits as defined in the
               following schedule of benefits, for any one accident regardless
               of the various periods of disability which may be compensated for
               the one accident.

                                        MAXIMUM                  PERCENT OF
                 LENGTH                  PERIOD                     BASE
               OF SERVICE             OF BENEFITS                 EARNINGS
               ----------             -----------                 --------
                6 months                13 weeks                     55
                5 years                 26 weeks                     60
                10 years                52 weeks                     65
                15 years                60 weeks                     70
                20 years                65 weeks                     75

           -   For a job-incurred disability of less than five (5) days, which
               does not qualify for Workers' Compensation Administration
               compensation, employees must use any accrued sick leave, and upon
               exhaustion of such accrued sick leave shall receive disability
               benefits as defined above. Any medical absence of five (5) days
               or more due to a work related injury or illness will be paid by
               the Workers' Compensation Benefit; employees will not use accrued
               sick leave.

           -   No supplemental disability payments shall be made for any
               disabling accident caused by the injured employee's violation of
               any safety rule.

           -   Any employee who performs activities for which compensation is
               received or which exceed the scope of the prescribed physical
               limitation pertaining to such disability while receiving
               disability compensation described in this section, shall forfeit
               his entitlement to all disability benefits and his employment
               shall be terminated.

12.7     JOB INCURRED INJURY/PARTIALLY DISABLED EMPLOYEES: When, in the
         opinion of the Company's doctor after consultation with the employees'
         doctor, regular employees with at least one (1) year of Company service
         cannot perform their regular work because of partial disability, but
         can perform other work, the following plan shall be applicable:

<PAGE>

         Each case shall be considered on its merits by a committee consisting
         of the Business Manager of the Union and a Human Resources
         Representative, and two (2) additional members, one (1) of whom shall
         be designated by the Union and the other by the Company. The committee
         shall have the authority to waive the seniority and bidding provisions
         of this Agreement in order to place the disabled employee, and it shall
         determine the seniority rights of such employee. This committee may
         call on anyone who may be able to furnish pertinent information.

         In no event will this Article apply if the employee's disability occurs
         while self-employed or working for others, for remuneration (except on
         Union business), or is involved in misconduct or an extreme violation
         of Company safety rules.

         The panel shall complete an evaluation of the type of work the employee
         is able to perform or may be able to perform in the future. Evaluation
         of the employee's capabilities may include but shall not be limited to
         a physical examination and doctor's reports, the employee's physical
         and mental ability, willingness to work, and trainability.

         Depending upon the evaluation of the employee and where necessary and
         practical, the Company shall provide job related education and
         training. The panel shall also conduct periodic review of these cases
         to determine if an employee's condition has changed; if the employee's
         condition has changed, the panel will reevaluate the employee's job
         assignment.

         The panel will determine the job classification which is appropriate
         for the work the employee is able to perform, as well as the proper pay
         rate, taking into account the new classification pay rate or the rate
         indicated on the following schedule, whichever is greater.

           YEARS OF COMPANY SERVICE          A PAY RATE THAT IS NOT LESS THAN
            1 to 4 years inclusive               70% base rate when injured
           5 to 14 years inclusive               80% base rate when injured
           15 to 24 years inclusive              85% base rate when injured
              25 years and over                  90% base rate when injured

         As long as such employee is paid more than the maximum rate for the job
         classification in which the employee is placed, the employee shall
         receive only fifty (50) percent of any base wage increase or lump sum
         payment in lieu of a base wage increase. Such fifty (50) percent shall
         be calculated on the employee's personal rate at the time of the
         increase.

         The placing of a disabled employee in a different job shall not
         constitute an increase in the Company's normal work force. However, the
         Company may

<PAGE>

         temporarily increase the number of authorized positions to accommodate
         an individual when a future vacancy is clearly defined and
         recognizable. If the committee is unable to place an individual in
         accordance with these provisions they would be eligible for vocational
         rehabilitation training, and benefits through the Workers Compensation
         Insurance. Upon this determination, the individual's employment with
         the Company will be terminated, and any accrued benefits will be paid
         at the time of termination.

         The parties agree that the provisions of this Article may be suspended
         with sixty (60) days written notice, documenting the reasons for this
         request and the interests, which would need to be addressed for the
         continuance of this program.

         INJURIES RELATIVE TO DOG BITES
         The Company and Union discussed meter-reading injuries relative to dog
         bites. The Company and Union agreed to communicate and reinforce, with
         a representative from the Call Center and Commercial Offices, the
         importance of their initial contact with the customer in annotating
         relevant information regarding animals. The Company will endeavor to
         locate and provide a list of local attorneys who might be interested in
         representing employees negatively impacted by dog bites.

12.8     SHORT TERM DISABILITY BENEFIT: A regular employee, who has worked more
         than one thousand forty (1040) straight time hours who shall suffer any
         disabling illness or injury while not in work status, shall be entitled
         to disability payments in such amounts and under such conditions as
         described herein:

          -    An eligible employee shall be entitled to receive payments not to
               exceed the percent of the employee's weekly straight time
               earnings, such earnings to be computed on the employee's regular
               rate for a forty (40) hour, seven (7) day period, for a maximum
               period of benefits at the percent of earnings as defined in the
               following schedule of benefits.

                                 MAXIMUM                 PERCENT OF
            LENGTH                PERIOD                    BASE
          OF SERVICE            OF BENEFITS               EARNINGS
          ----------            -----------               --------
           6 months*             13 weeks                    55
           5 years               26 weeks                    60
           10 years              52 weeks                    65
           15 years              60 weeks                    70
           20 years              65 weeks                    75

          * Employees in this category may be granted up to thirteen (13)
          additional weeks of leave without pay for continued disability.

          -    No disability payments for an illness shall be made until at
               least a three (3) days waiting period has been observed, however,
               an employee must use

<PAGE>

               accrued sick leave to satisfy the waiting period or to extend the
               waiting period to the maximum of the amount of accrued sick
               leave.

           -   Any female employee who becomes pregnant and is unable to work
               shall be entitled to disability benefits under this Article, as
               described above, subject to the following conditions. She must
               present a document from her attending physician saying that she
               is under the doctor's care because of the pregnancy and is unable
               to work. The period of the disability shall begin at least three
               (3) days after the attending physician declares the employee
               disabled and shall end when the employee is no longer disabled as
               determined by the attending physician. Pregnant employees must
               use all accumulated sick leave before disability payments will
               start. A female employee will not be eligible for pregnancy
               related disability benefits except for her own disability. An
               employee who is on maternity leave and recovering from disability
               may request to have her leave extended for up to three (3) months
               after termination of pregnancy for child care or other reasons.

           -   Any employee who performs activities for which compensation is
               received or which exceed the scope of the prescribed physical
               limitation pertaining to such disability while receiving
               disability compensation described in this section, shall forfeit
               their entitlement to all disability benefits and their employment
               shall be terminated.

           -   Any employee who returns to work in a light-duty status from
               short-term disability will not create a new benefit eligibility
               until they have had a full-duty release and worked for thirty
               (30) calendar days from the time of that release. If an employee
               returns to short-term disability without satisfying this
               requirement, their short-term disability benefit will reflect
               their prior usage and continue until expiration of such benefits.

           -   Any employee, who is unable to perform the duties of their
               position as a result of a non-job-incurred injury, would be
               considered for any vacancy for which they are qualified. If
               awarded a position in accordance with Article 7 (SENIORITY AND
               PROMOTIONS), the employee would receive the appropriate rate of
               pay for that position.

           -   Any employee that exhausts their short-term disability benefit
               and is unable to return to work at that time, may request one
               unpaid leave of absence for up to ninety (90) days to allow time
               for further recuperation or possible vacancies for which they are
               qualified. Such employees will be allowed to continue their
               medical coverage at the appropriate COBRA rate for this period of
               time. If this individual is unable to return to work at the
               expiration of this unpaid leave, their employment with the
               Company will be terminated and all accrued benefits will be paid
               at the time of termination.

12.9       RE-OPENER: The Company and Union may reopen the issue of salary
           protection relative to sick leave and address common interests at a
           future date. The request to discuss these issues will be made in
           accordance with the provisions of Article 17 (TERM OF AGREEMENT).

<PAGE>

                                 ARTICLE NO. 13
                            EMPLOYEE BENEFIT PROGRAMS

This Article is amended and restated as of February 1, 2002. Attachments and
Letters of Understanding relating to Benefits, formerly residing in the back of
the contract, have been incorporated into this Article. For previous language,
refer to the prior Contract.

13.1     MEDICAL / DENTAL / VISION
         The "Nevada Power Company Self-funded Medical Benefit Plan" also know
         as the "NPC Union Plan" shall be incorporated, by reference, into the
         Agreement for purposes of establishing the levels of benefits for
         Medical, Dental, and Vision. Changes negotiated in 2002 will become
         effective July 1, 2002, unless otherwise stated.

         The Letters of Agreement dated July 12, 2000, regarding Benefits Open
         Enrollment, Survivor Medical Benefits, and Union PPO Plan
         Pre-Authorization will be incorporated into the CBA.

         The Company agrees to maintain all of these benefits for eligible
         employees and will provide medical expense, vision expense, and dental
         expense coverage for eligible dependents for the life of this
         Agreement. The Company reserves the right to select any insurance
         carrier or to self-insure all or any portion of these benefits.

         ELIGIBILITY. Eligible employees must have satisfied the requirements
         satisfied in Article 5 (STATUS OF EMPLOYEES) of this Agreement.
         Eligible dependents are dependents of eligible employees who meet the
         "definition of dependent" as contained in the Nevada Power Company
         Self-Funded Medical Benefit Plan referenced above. Effective July 1,
         2002, definition of dependent excludes former spouses.

         OPTIONS.  The Company will permit employees to select between the
         following health care plan options:

               1.   NPC Union Plan, the Self-insured Preferred Provider
                    Organization (PPO) (Administered and governed by the Company
                    and its vendors)

               2.   Fully-insured PPO (Administered and governed by the
                    respective insurance carrier)

               3.   Health Maintenance Organization (HMO) (Administered and
                    governed by the respective insurance carrier)

               4.   No coverage, contingent upon proof of other insurance.

         OPEN ENROLLMENT. Elections of medical plan options will be made in the
         fall of each year during an open enrollment period. The election
         remains in effect for the entire Plan Year, unless the employee incurs
         a "Qualifying Life Event" as defined by the Internal Revenue Code
         Section 125, Cafeteria Plan. If an

<PAGE>

         employee fails to enroll, coverage will default to previous year's
         coverage for himself and dependents. A special open enrollment period
         will be held in May/June, 2002, to allow mid-year changes prior to
         July 1st effective date of new plan provisions and premium
         contributions.

         EMPLOYEE CONTRIBUTIONS. The rates for the NPC Union Plan, will be
         actuarially determined each Plan Year, based on previous claims
         experience. The rates for the fully insured PPO and the HMO will be as
         quoted by the respective insurance carriers. Payroll deduction will be
         on a pre-tax basis, and taken the first and second pay periods of each
         month. Employee contributions are defined below.

               a)   Effective July 1, 2002, and for Plan Year 2003 cost sharing
                    for all options will be 85% Company and 15% Employee, with a
                    20% cap on the increase to employee contributions from 2002
                    to 2003. Effective July 1, 2002, Tier II premiums schedules
                    will be removed.

               b)   Effective January 1, 2004, the cost sharing for all options
                    will be 80% Company and 20% Employee, with a 20% cap on the
                    increase to employee contributions from 2004 to 2005 and
                    thereafter.

         PREFERRED PROVIDER ORGANIZATION. Under the, NPC Union Plan, when a
         Preferred Provider is available within a 60-mile radius of the
         employee's (or the dependent seeking care) residence, and there is more
         than one (1) Preferred Provider available to perform the services, the
         employee will be subject to the PPO provisions and Non-PPO penalties.

         COVERAGE OUTSIDE THE PLAN AREA. Under the NPC Union Plan, participants
         located in an area sixty (60) miles or more from a Preferred Provider
         will be reimbursed for services of a Non-PPO Provider at the Preferred
         Provider scale and will be subject to the usual, customary, and
         reasonable (UCR) charges for the area in which the service is received.

         CO-INSURANCE. Effective July 1, 2002, under the NPC Union Plan,
         co-insurance is 80% Company / 20% Employee for care and services
         rendered by a Preferred Provider and 60% Company / 40% Employee for
         care and services rendered by Non-PPO Providers.

         MENTAL HEALTH BENEFIT.  Pre-authorization required.
                  Mental health outpatient care:
                        -  100% after $20 co-pay
                        -  60% after deductible for Non-PPO provider
                        -  Limited to fifty (50) visits per year

                  Mental health inpatient care:
                        -  80% after deductible for PPO provider

<PAGE>

                        -  60% after deductible for Non-PPO provider
                        -  Limited to thirty (30) days per year

         DENTAL BENEFIT. The Company will provide a dental care benefit,
         including a dental PPO and an orthodontic benefit for all eligible
         employees and dependents. Coverage includes the following:

               a)   Annual benefit is $2,000 per person

               b)   Annual deductible is $25 per person/$75 family

               c)   Preventive care is covered at 100% with no deductible if a
                    PPO provider is used and 100% after $25 deductible if a
                    Non-PPO provider is used.

               d)   After deductible, the following dental treatments are
                    covered at:

                    -    80% for Basic Periodontics / Prosthetics and Oral
                         Surgery

                    -    50% after deductible for Major Restoration

                    -    Orthodontia is covered at 100% after deductible up to a
                         separate lifetime maximum of $2,000

                    -    All percentages are subject to usual, customary, and
                         reasonable (UCR) charges

         VISION BENEFIT. A vision care program will continue to be available for
         eligible employees and eligible dependents. This plan covers
         professional services; examinations every twelve (12) months based on
         your last date of service; lenses every twelve (12) months based on
         your last date of service, frames once every twenty-four (24) months
         based on your last date of service. Examinations will have a
         twenty-five ($25) dollar co-pay for a PPO Provider and a maximum of
         forty dollars ($40) paid for a Non-PPO Provider. The vision care
         program also provides one pair of prescription safety glasses to
         employees whose job duties require eye protection in accordance with
         the Company's established safety standards, once every twelve (12)
         months based on your last date of service, if needed.

         PRESCRIPTION DRUG BENEFIT. The Company will provide all eligible
         employees and eligible dependents a prescription drug service that
         allows participants to obtain prescription drugs through preferred
         pharmaceutical outlets. Effective July 1, 2002, the following co-pays
         apply:

         *    RETAIL
               1.   Generic ("Tier 1") = $5 co-pay for 30-day supply
               2.   Brand Name ("Tier 2") = $15 co-pay for 30-day supply
               3.   Non-Preferred ("Tier 3") = $35 co-pay for 30-day supply

          *    MAIL ORDER - AVAILABLE FOR "MAINTENANCE" (LIFE-SUSTAINING) DRUGS
               ONLY
               1.   Generic ("Tier 1") = $10 co-pay for 90-day supply
               2.   Brand Name ("Tier 2") = $30 co-pay for 90-day supply

<PAGE>

               3.   Non-Preferred ("Tier 3") = $70 co-pay for 90-day supply

         If there is no generic substitute, the brand name co-pay applies. If
         the doctor indicates ("dispense as written") and a generic substitute
         is available the brand name co-pay applies. If the employee and /or
         dependent choose a brand name and there is a generic available, they
         will pay the brand name co-pay plus the difference in cost between the
         generic and brand name prescription.

13.2     DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (DCFSA)
         The Company will provide a Dependent Care Flexible Spending Account
         (DCFSA) that allows pre-tax funding of dependent care and child care
         expenses. Eligibility will be the same as health care, six (6) months
         for full-time and 1,040 hours for part-time. Effective July 1, 2002,
         temporary employees are no longer eligible for this benefit. Payroll
         deduction will be taken the first and second pay periods of each month.

13.3     HEALTH CARE FLEXIBLE SPENDING ACCOUNT (HCFSA)
         Effective January 1, 2003, the Company will offer a Health Care
         Flexible Spending Account (HCFSA) that allows pre-tax funding of
         qualified health care expenses for employees and dependents.
         Eligibility will be the same as health care, six (6) months for a
         full-time employee and 1,040 hours for a part-time employee. Temporary
         employees are not eligible. Payroll deduction will be taken the first
         and second pay periods of each month.

13.4     RETIREMENT
         The Sierra Pacific Resources Retirement Plan, restated on January 1,
         2000, is a defined benefit pension plan bearing No. 01. The Plan,
         including amendment No. 1 dated November 29th, 2001, and amendments
         generated by 2002 negotiations, shall be incorporated by reference into
         this Agreement. The Company has, since January 1, 1976, been paying the
         entire cost of the retirement plan. All participants in the retirement
         plan, which was in effect before January 1, 1976, have and are
         guaranteed all accrued benefits under that retirement plan as computed
         on December 31, 1975. Effective April 1, 2002, unless noted otherwise,
         the following provisions shall apply:

         ELIGIBILITY. Employees become a Plan participant after they reach age
         twenty-one (21) and earn a year of eligibility service. A year of
         eligibility service is earned by being credited with at least 1,000
         hours of service during a twelve-month period measured from the
         employee's date of hire or in any subsequent calendar year. Contingent
         Workers are not eligible to participate in the Plan. If a temporary
         employee is subsequently hired as a regular employee, the temporary
         time will be counted towards Eligibility, Vesting, and Benefit Accrual
         Service.

         BENEFIT ACCRUAL SERVICE. Benefit Accrual Service includes all
         pre-participation service, including the first year of eligibility
         service and all service prior to age twenty-one (21).

<PAGE>

         VESTING. Vesting Service recognizes service prior to age eighteen (18)
         and has changed from five (5) years of service with at least 1,000
         hours worked in each year, to five (5) years of service with at least
         one hour worked in each year.

         RETIREMENT FORMULA. The formula is (Final Average Earnings x 1.5% x
         Benefit Accrual Service).

         85-POINT PROVISION. Unreduced retirement benefits are available to
         employees who meet the eligibility criteria and terminate: at age
         sixty-five (65); at age sixty-two (62) with at least five (5) years of
         Vesting Service; or upon reaching age fifty-five (55) with a total of
         eighty-five (85) points when age and Benefit Accrual Service are added
         together.

         EARLY RETIREMENT FACTORS. Early retirement benefits for participants
         that elect to start their benefits prior to reaching age sixty-two
         (62), will be reduced by five percent (5%) per year. This five percent
         (5%) reduction shall be adjusted for the participant's exact age at
         early retirement. Employees that are eligible for the 85 Point
         Provision will not be subject to any reductions in post retirement
         medical or pension benefit.

         DEFINITION OF EARNINGS. Effective January 1, 2000, "Earnings" shall be
         defined as base salary, Company observed and floating holiday pay, sick
         leave, vacation, short-term disability earnings, shift premiums,
         upgrade pay, overtime, annual incentive pay, plus any deferrals to
         401(k) or 125 (Flexible Spending Account/Pre-tax Medical) plans.
         Earnings shall specifically exclude retention bonuses, severance pay,
         moving expenses, pay advances, service awards, meal
         allowances/reimbursements, certification awards, education
         reimbursements, cash-outs of sick leave and personal time pay,
         ineligible holiday pay, Union negotiations pay, imputed life insurance,
         tax gross-ups, unpaid family and medical leave, unpaid personal leave,
         banked compensation time, and customer service prizes. Eligible
         Earnings actually paid to the participant prior to termination of
         employment will be used to determine Final Average Earnings (FAE).

         FINAL AVERAGE EARNINGS. Final average earnings (FAE) are the highest 60
         consecutive calendar months (5 years) during the last 120 months (10
         years) of employment. If an employee can show proof of prior earnings
         resulting in a higher FAE [60 consecutive calendar months (5 years)],
         the Company will recognize those earnings

         ANNUITY OPTIONS. Single Life Annuity (SLA) and Joint & Survivor Annuity
         Options are available. Joint & Survivor Annuity Options are 50%, 75%,
         and 100%. The "automatic" benefit for married participants, in the
         absence of an election, is the 50% Joint and Survivor annuity. This
         option is to be decided by participant at time of retirement with a
         five-year "pop-up" provision.

         LEVEL INCOME OPTION. A Level Income Option was added to provide a level
         amount of retirement income when Retirement and Social Security
         benefits are combined. This option is available to employees who are
         under age sixty-two (62) and elect a Single Life Annuity.

<PAGE>

         LUMP SUM LIMIT.  The Lump sum limit is $50,000.

         DISABILITY BENEFITS. Pension benefits for participants who incur a
         disability, as defined in the Plan, after ten (10) years of Benefit
         Accrual Service and who have at least sixty (60) points when age and
         Benefit Accrual Service are added together shall continue to accrue
         Benefit Accrual Service while eligible to receive disability benefits
         under either the Social Security Act or the Company's Long Term
         Disability Plan. Participants may elect to commence benefits as early
         as age fifty-five (55), but Benefit Accrual Service will stop accruing
         after the benefits have commenced and an early retirement factor will
         apply to benefits commenced prior to reaching age sixty-two (62).

         ACCRUED SICK LEAVE. All sick leave accrued at the time of termination
         will be added to years of Benefit Accrual Service for vested
         participants.

         VACATION EARNINGS ADJUSTMENT. Final Average Earnings (FAE) will not be
         adjusted to include accrued vacation at the time of termination.

         HARDSHIP WITHDRAWALS. Effective January 1, 2000, hardship withdrawals
         are not permitted.

         RETIREE LIFE INSURANCE. Effective January 1, 2000, employees who retire
         on or after attaining age fifty-five (55) with at least ten (10) years
         of service are eligible for Retiree Life Insurance. Post-Retirement
         Death Benefit was removed from the Retirement Plan, effective January
         1, 2000, and replaced by an insured $10,000 retiree death benefit. This
         effectively increased the value of the benefit since Life Insurance is
         not taxable to the beneficiary, while the previous benefit was taxable
         income.

13.5     POST RETIREMENT MEDICAL
         Employees who retire on or after age fifty-five (55) with at least ten
         (10) years of service are eligible for Post-Retirement Medical
         benefits.

         Effective April 1, 2002 the post-retirement medical calculation for the
         employer contribution is as follows:

               a)   For employees who retire from the Company prior to reaching
                    age sixty-five (65), the Company will contribute $240 per
                    year of service (maximum of 35 years). If an employee
                    retires prior to reaching age sixty-two (62) and has not
                    obtained 85 points as outlined in the Retirement Plan, the
                    $240 is reduced by 5% for each year under age sixty-two
                    (62). Upon reaching age sixty-five (65), the $240 is reduced
                    to $120 per year of service (35-year maximum).

               b)   For employees who retire from the Company on or after
                    reaching age sixty-five (65), the Company will contribute
                    $120 per year of service (35-year maximum).

         Effective January 1, 2003, the Company will reinstate a PPO option that
         costs less than the self-funded plan for retirees. This option may be
         the current "Sierra Select Plan" or other plan as selected by the
         Company.

<PAGE>

13.6     401(K)
         The "SPR 401(k) Plan", Local 396 Schedule of Benefits, shall be
         incorporated, by reference, into the Agreement for purposes of
         establishing the level of benefits for 401(k). Changes negotiated in
         2002 will become effective July 1, 2002, unless otherwise stated.

         ELIGIBILITY. All regular full-time and part-time employees are eligible
         on the 1st of the month following their date of hire. Temporary
         employees may join the plan after completing one year of service and
         having worked at least 1,000 hours in that year.

         VESTING. There is no vesting period. Company match is 100% vested upon
         receipt.

         MATCHING CONTRIBUTIONS. The matching contribution is 100% of the
         employee's contribution, to a maximum of 6% of eligible income. 25% of
         Company contributions will be invested in Sierra Pacific Resources
         Company stock. There is no "hold" requirement on SRP stock. Funds may
         be diversified upon receipt.

         EMPLOYEES DEFERRAL CONTRIBUTIONS. Effective on July 1, 2002, employees'
         deferral limit will increase from 15% to 100%, with a maximum of
         $40,000, subject to IRS limitations.

         "CATCH-UP" CONTRIBUTIONS. Effective July 1, 2002, eligible employees
         who have attained at least age fifty (50) on or before the close of
         each Plan Year, shall be eligible to make pre-tax catch-up
         contributions in accordance with, and subject to the limitations of,
         IRS Code Section 414(v). These contributions are not subject to Company
         matching contributions. In 2002, the "catch-up" amount is $1,000 and
         increases by $1,000 increments until 2006.

         LOAN PROVISION. Loans may be taken against 401(k) account balances,
         minimum $1,000, maximum $50,000 (or 50% of total account balance,
         whichever is less). General-purpose loans are required to be paid back
         within five (5) years. Loans for the purchase of a primary residence
         are required to be paid back within ten (10) years.

13.7     LIFE INSURANCE
         BASIC LIFE. The greater of $46,000 or 1.4 times your base pay (maximum
         $1,000,000). Benefits from this policy shall be in addition to any
         other insurance plan. Eligibility is the same as health care, six (6)
         months for full-time and 1,040 hours for part-time.

<PAGE>

         BASIC ACCIDENTAL DEATH & DISMEMBERMENT (AD&D). The greater of $46,000
         or 1.4 times your base pay (maximum $1,000,000) paid in the event of
         death resulting from an "accident" as defined by the respective
         insurance carrier. Benefits from this policy shall be in addition to
         any other insurance plan. Eligibility is the same as health care, six
         (6) months for full-time and 1,040 hours for part-time.

         BUSINESS TRAVEL ACCIDENT. All employees covered by this Agreement will
         be covered by an accidental death and dismemberment policy in the
         amount of $50,000. This policy shall apply only when an employee is
         traveling on Company business outside their regularly assigned work
         location. Benefits from this policy shall be in addition to any other
         insurance plan. Eligibility is the same as health care, six (6) months
         for full-time and 1,040 hours for part-time.

         SUPPLEMENTAL LIFE. The Company will provide a supplemental life
         insurance program that allows employees desiring such coverage to
         purchase supplemental life insurance for themselves at group rates. The
         employees will pay for supplemental life insurance premiums through
         payroll deduction. The Company will pay all administrative expenses,
         exclusive of carrier expense normally absorbed in the rates. Benefits
         from this policy shall be in addition to any other insurance plan.
         Payroll deduction will be taken the first and second pay period of each
         month. Eligibility is the same as health care, six (6) months and
         full-time employment status.

13.8     LONG TERM DISABILITY
         ELIGIBILITY. Employees may purchase Long Term Disability (LTD) coverage
         on a voluntary basis through payroll deduction. Eligibility will be the
         1st of month following date of hire. Temporary employees are not
         eligible for this benefit. Payroll deduction will be taken on a
         post-tax basis the first and second pay periods of each month.

         COVERAGE. Coverage is the lesser of 60% of monthly base earnings
         rounded to the nearest dollar or the maximum disability benefit
         ($10,000 a month), less other income benefits as named in the summary
         description.

13.9     SHORT TERM INCENTIVE PLAN "STIP"
         Each contract year there will be up to a 4% Short Term Incentive Pay
         (STIP) bonus potential. The STIP will be paid upon achievement of
         corporate and business unit goals as defined by the Company. The
         corporate and business unit goals will be identical for all employees,
         including MPAT, and will change each year. If the corporate financial
         target is not achieved in a contract year, the STIP will not be funded.
         The financial target is the trigger. Extraordinary events affecting
         performance of a goal may be considered by the CEO in determining the
         size and existence of the award.

<PAGE>

           ELIGIBILITY
               -    Must be employed on the last day of the fiscal year
               -    Regular Full-Time or Part-Time Employees
               -    Temporary Employees are not eligible
               -    Employees must complete a six (6) month (and/or 1040 hours)
                    probationary period by the last day of the year-end payroll
                    period.

           CALCULATION

               -    STIP will be calculated using the employee's hourly rate as
                    of the end of the payroll year; multiplied by the actual
                    regular/straight time hours worked, not to exceed 2080
                    hours. Once earned, annual award will be paid on or before
                    April 15th for the prior years performance.

           (Straight time hours x base hourly wage) x Achievement Percentage.
           Achievement Percentage = STIP Opportunity of 4% x Performance Results

           PRORATION
           The Company will prorate the STIP for the following reasons:

               -    Employee retires
               -    Deceased
               -    Company initiated severance

           The Company will also prorate the STIP if an employee transfers from
           one bargaining unit to another (i.e. from IBEW 396 to IBEW 1245, or
           visa versa), or from a MPAT position to a bargaining unit position or
           visa versa.

                                 ARTICLE NO. 14
                                LEAVES OF ABSENCE

14.1       SHORT TERM LEAVES: Provided the needs of the Company will permit,
           time off without pay for any period of thirty (30) calendar days or
           less may be granted employees upon a written application to their
           department head showing good and sufficient reason for such request.
           This shall not be construed as a leave of absence without pay, as the
           term is used in this Agreement. A leave of absence without pay is
           defined as a period of authorized absence from service in excess of
           thirty (30) days.

14.2       JUSTIFICATION: Leaves of absence shall be granted to regular
           employees for urgent substantial personal reasons, provided adequate
           arrangements could be made to take care of the employee's duties
           without undue interference with the normal routine of work. Leave
           will not be granted if the purpose for which it is requested may lead
           to the employee's resignation.

<PAGE>

14.3       DURATION: A leave shall commence on and include the first work day on
           which an employee is absent and terminate with and include the work
           day preceding the day the employee's leave expires. The conditions
           under which an employee shall be restored to employment on the
           termination of his leave of absence shall be clearly stated by the
           Company on the application for leave form.

14.4       SENIORITY: Except as otherwise provided herein, an employee's
           seniority shall not accrue while on leave without pay. However, an
           employee's status as a regular employee shall not be impaired by a
           leave of absence. Any period of authorized absence without pay for
           thirty (30) days or less shall not affect an employee's seniority
           status. Upon return from leave, an employee shall return to regular
           status.

14.5       UNION OFFICE: The Company shall, at the request of the Union, grant a
           leave of absence without pay for four (4) years or less to an
           employee who is appointed or elected to any office or position in the
           Union whose services are required by the Union. The seniority of an
           employee who is granted a leave of absence under the provisions of
           this Section shall accrue during the period of such leave. Upon
           mutual Agreement with the Union, the Company may extend the leave of
           the incumbent for additional terms up to four (4) years per request.
           The Company will provide medical coverage for this individual at the
           single coverage rate. This individual must make the established
           monthly employee contribution for health coverage.

14.6       PUBLIC OFFICE: Employees elected or appointed to public office shall
           be granted a leave of absence for the duration of such appointment or
           election. Such absence shall not affect accrual rates for seniority
           purposes; however, sick leave and vacation shall not accrue during
           this period and group medical benefits shall be paid by the employee
           at the Company's current premium rate.

14.7       MILITARY LEAVE: A leave of absence shall be granted to employees who
           enter the armed forces of the United States, however, any such leave
           of absence and the reinstatement of any such employee shall be
           subject to the terms of the Selective Training and Service Act of
           1940, as amended. Employees who are members of the armed services who
           are drafted and are called to active duty shall accrue Company
           seniority while they are absent on military duty.

           A regular employee, or a temporary employee who has worked more than
           one thousand forty (1040) straight time hours, who is a member of the
           armed forces reserve units, or the National Guard, and who is
           required to attend annual training sessions, will be granted a leave
           of absence for the duration of such assignment. In addition, the
           Company will pay such employee the amount, if any, by which the
           remuneration received from the government is less than the base
           straight time earnings the employee would have received for the same

<PAGE>

           period, not to exceed eighty (80) hours in a calendar year. Such
           items as subsistence, travel, uniform and other allowances will not
           be included in computing the remuneration received from the
           government. The Company will require satisfactory evidence of
           attendance and remuneration received.

14.8       FAILURE TO RETURN FROM LEAVE: If employees fail to return immediately
           on the expiration of their leave of absence, or if they accept other
           employment while on leave, they shall forfeit the leave of absence
           and terminate their employment with the Company.

14.9       FUNERAL LEAVE: A regular employee, who has worked more than one
           thousand forty (1040) straight time hours, who is absent from duty
           due to a death in the employee's immediate family will be excused
           without loss of regular pay for the time required not to exceed forty
           (40) hours for making funeral arrangements and attending the funeral,
           provided the employee attends the funeral, furnishes a death
           certificate to the payroll department within thirty (30) days.
           Additional time may be taken to insure four working days off; any
           hours in excess of forty (40) hours can be taken as vacation or
           personal time off without pay. Immediate family shall mean the
           employee's grandparents, mother, father, stepmother, stepfather,
           brother, sister, spouse's grandparents, spouse's parents, spouse's
           children, spouse, son, daughter, or grandchildren.

14.10      JURY DUTY: When regular employees, or temporary employees who have
           worked more than one thousand forty (1040) straight time hours, are
           absent from work in order to serve as a juror or to report to the
           court in person in response to a jury duty summons or to report for
           jury examination, they shall be granted pay for those hours spent in
           such service during their regular work day or regular work week.
           Employees shall furnish the Company with a statement from an officer
           of the court setting forth the time and days on which they reported
           for jury duty and their compensation due or received for jury duty.

14.11      SUBPOENA: If employees are absent from work, in order to serve as a
           witness in a case in a court of law to which they are not a party,
           either directly or as a member of a class action suit, and where such
           absence is in response to a legally valid subpoena or its equivalent,
           the employee shall be granted leave with pay for those hours for
           which the employee is absent from work during the employee's
           regularly scheduled working hours, provided the employee submits
           evidence of such service as a witness, detailing the time required to
           testify.

14.12      FAMILY LEAVE: Employees who are eligible for benefits but have less
           than one year of service with the Company are entitled to forty-five
           (45) calendar days of unpaid family leave to use for the birth or
           adoption of a child. Vacation pay may be used for a portion of this
           leave of absence but will not extend the leave to more than
           forty-five (45) days.

<PAGE>

14.13      FAMILY AND MEDICAL LEAVE: Employees who are eligible for benefits and
           have one year or more of Company service may be entitled to twelve
           (12) weeks of unpaid leave in accordance with the Federal Family and
           Medical Leave Act (FMLA)of 1993.

                                 ARTICLE NO. 15
                               GENERAL PROVISIONS

15.1       SUPERVISORY RESPONSIBILITIES IN EMERGENCY CONDITIONS: It is the
           intention of the Company that supervisors shall generally confine
           their activities to the supervision of the work or operations being
           performed. In certain instances, should emergency conditions arise,
           it may be necessary for them to perform those tasks normally assigned
           to bargaining unit employees. Under ordinary circumstances, such
           instances will very rarely occur, but since the safety of personnel
           or Company property may be in jeopardy, it must remain management's
           prerogative to determine when conditions require the actions
           described above. In the same manner it is the intention of management
           that the "chain of command" be adhered to, by both supervisors and
           bargaining unit employees. However, in the case of emergencies, there
           will be occasions when it may be necessary for a senior supervisor to
           bypass normal chain of command in order to prevent difficulties.
           Common sense and good judgment must be exercised in applying these
           paragraphs.

15.2       NEW CLASSIFICATIONS/WAGES: Any new rate covering work normally
           performed by employees within the bargaining unit shall first be
           discussed with the Union and the rate established for such work shall
           be that mutually agreeable to both parties. When advances in
           technology or other changes that materially affect job duties and
           responsibilities, the Union and the Company will agree to revise job
           descriptions as needed.

15.3       REMOVING LETTERS OF DISCIPLINE: Any employee who receives a written
           letter of reprimand which is a part of the personnel file maintained
           in the Company's Human Resources office, may, after three (3) years
           from the date of such letter, request in writing to have the letter
           removed. Upon such written request, the Company shall remove the
           letter and return it to the employee. If the behavior that warranted
           the letter has changed or been corrected, the employee's current
           supervisor can remove the letter from the employee's personnel file
           by documenting this change in behavior and providing written
           authorization to human resources.

15.4       FACILITIES: The Company will provide on its premises clean, sanitary
           and reasonably comfortable rest and wash rooms, including first aid
           cots for female employees, together with a proper place for storing
           lunches carried by

<PAGE>

           employees, and reasonably safeguarding employee's out-of-door
           clothing and necessary personal effects on the Company's property
           during the time employees are on duty. The Union agrees to cooperate
           with the Company in the maintenance of these facilities.

15.5       FAMILY ISSUES: The Company and the Union recognize that work/family
           issues will continue to be at the forefront of workplace activities.
           As such, the Company and the Union have agreed to address the issues
           of job sharing, telecommuting and other alternative work schedules or
           programs which allow both the Company and employee maximum
           flexibility without jeopardizing customer service. These issues will
           be addressed through labor/management meetings and may be initiated
           on a case-by-case basis.

15.6       LABOR/MANAGEMENT MEETINGS: The Company and the Union agree to hold
           periodic meetings to discuss matters, which are covered by the
           Agreement. These meetings will be held on Company premises during
           work hours and shall be held as needed, but not less than every sixty
           (60) days. The number of employee attendees who are covered by the
           Agreement shall be limited to the stewards and other employees
           reporting to the Company premises designated as the site of a
           particular meeting. Both the Company and Union recognize the value in
           formally convening to discuss issues that affect departmental
           policies, procedures, and collective bargaining provisions. The
           Company and Union agreed to continue holding departmental
           labor/management meetings as a forum to clarify; address interests,
           and problem-solve solutions that mutually benefit all employees. The
           Company recognizes the value of participation and input from all its
           employees and the Union's facilitation of this process is critical to
           our mutual success.

15.7       INCENTIVE PROGRAMS: The Company and the Union agree to discuss all
           incentive programs which are an addition to base wages.

                                 ARTICLE NO. 16
                                  WORKING RULES

                                  REFER TO TABS

                                 ARTICLE NO. 17
                                TERM OF AGREEMENT

17.1       DURATION: This Agreement shall take effect on February 1, 2002, and
           shall continue in effect for the term February 1, 2002 to February 1,
           2005, and shall continue in full force and effect from year to year
           thereafter unless written

<PAGE>

           notice of termination shall be given by either party to the other at
           least sixty (60) days prior to the end of the then current term.

17.2       AMENDMENTS: If either party desires to amend this Agreement, it shall
           give notice thereof to the other party at least sixty (60) days but
           not more than seventy (70) days, prior to the end of the then current
           term, and the party desiring to amend or revise this Agreement shall
           submit to the party so notified a detailed outline of the Articles
           and Sections to be amended or revised at the time the notice is
           given, except and unless otherwise mutually agreed to by the parties
           during this period of notice defined herein. Negotiations on the
           amendments or revisions shall take place, so far as possible, in the
           sixty (60) day period prior to the end of the then current term.
           Failure of the parties to agree on such proposed amendment or
           revision shall not cause termination of this Agreement unless either
           party has given notice of termination as provided in Article 17.1
           above.

17.3       PROVISIONS IN CONFLICT WITH THE LAW: In the event that any provision
           of this Agreement shall at any time be made invalid by applicable
           legislation, or be declared invalid by any court of competent
           jurisdiction, such action shall not invalidate the entire Agreement,
           it being the express intention of the parties that all other
           provisions not made invalid shall remain in full force and effect.

17.4       CHANGE IN COMPANY STATUS: This Agreement shall be binding upon the
           successors and assigns of the Company, and no provisions, terms or
           obligations herein contained shall be affected, modified, altered or
           changed in any respect whatsoever by the consolidation, bankruptcy,
           merger, sale, transfer, reorganization or assignment of the Company,
           or by any change in the legal status, ownership or management
           thereof.

17.5       EFFECTIVE DATE OF AGREEMENT: It is mutually agreed by and between the
           parties signatory hereto that the Agreement dated February 1, 1998,
           is superseded by this Agreement dated as of February 1, 2002. Except
           as otherwise expressly provided herein, the provisions of this
           Agreement shall be effective February 1, 2002.

<PAGE>

In witness whereof, the parties hereto have executed this Agreement on February
1, 2002

Local Union #396 of the International
Brotherhood of Electrical Workers (AFL-CIO)

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

James C. Anzinger
Business Manager/Financial Secretary
IBEW Local 396

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

Mark Ruelle
President
Nevada Power Company

                              NEGOTIATING COMMITTEE

        IBEW, LOCAL NO. 396                                NEVADA POWER
        -------------------                                ------------
        Jim Anzinger                                       Mark Sandoval
        Kenneth Cooper                                     Mary Jean Snow
        Madeline Anzinger                                  Diane Bates
        John Caruso                                        Vincent Burton
        Lisa Duran                                         John Carrell
        Duane Hopster                                      James Christensen
        Ernest Moyes                                       Zelender Dye
        William Neiles                                     Robin Simmons
        Shannon Skinner                                    Leonard Zeedyk
        Robert Vigil
        Edwin Westby

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