Document:

<PAGE>
                                                                    Exhibit 10.4

                                                                [EXECUTION COPY]

                                 AMENDMENT NO. 2
                                       TO
                                CREDIT AGREEMENT

         This AMENDMENT NO. 2, dated as of June 25, 2002 (this "AMENDMENT"), is
made by and among NEVADA POWER COMPANY, a Nevada corporation (the "BORROWER"),
the banks listed on the signature pages of this Amendment as "Lenders" (such
banks, together with their respective permitted assignees from time to time,
being referred to herein, collectively, as the "LENDERS"), and UNION BANK OF
CALIFORNIA, N.A. ("UNION BANK"), as administrative agent for the Lenders (the
"ADMINISTRATIVE AGENT").

                             PRELIMINARY STATEMENTS:

         (1)      The Borrower, the Lenders, the Administrative Agent, Union
Bank, as Sole Bookrunner, Wells Fargo Bank, N.A., as Syndication Agent, and Bank
One, NA, BNP Paribas and Mellon Bank, N.A., as Co-Documentation Agents,
previously entered into that certain Credit Agreement, dated as of November 30,
2001, as amended by that certain Waiver Letter and Amendment (the "WAIVER
LETTER"), dated April 4, 2002 (as so amended, the "EXISTING AGREEMENT", as
further amended by this Amendment, the "AMENDED AGREEMENT", and as the Amended
Agreement may hereafter be amended, supplemented or otherwise modified from time
to time, the "CREDIT AGREEMENT"). Capitalized terms used and not otherwise
defined herein shall have the meanings assigned thereto in the Existing
Agreement.

         (2)      As contemplated at the time of executing the Existing
Agreement, the Borrower plans to enter into a receivables purchase facility (the
"RECEIVABLES PURCHASE FACILITY") with certain financial institutions (the
"PURCHASERS"). Under the Receivables Purchase Facility, (a) the Borrower will
sell accounts receivable arising from the provision of electricity to a newly
created, wholly-owned bankruptcy remote special purpose subsidiary of the
Borrower (the "SPV") and (b) either (i) the SPV (or a newly created,
wholly-owned bankruptcy remote special purpose subsidiary of Sierra Pacific
Resources (the "PARENT SPV") to which the SPV may first sell such accounts
receivable) will sell undivided percentage ownership interests in such accounts
receivable (the "PURCHASER INTERESTS") to the Purchasers, or (ii) the Purchasers
will make advances

<PAGE>
                                                                               2

("ADVANCES") to the SPV or the Parent SPV in respect of and secured by such
accounts receivable.

         (3)      Although it was the parties' intention that the Existing
Agreement permit the establishment of the Receivables Purchase Facility to
enhance the Borrower's liquidity and overall financial position, during the
course of preparing the documentation for the Receivables Purchase Facility, it
has become apparent that certain provisions of the Existing Agreement restrict
the capacity of the Receivables Purchase Facility to achieve those objectives.

         (4)      Accordingly, the Borrower now wishes to amend the Existing
Agreement to clarify that the Borrower may enter into the transactions
contemplated by the Receivables Purchase Facility. The Borrower also wishes to
amend Section 6.02 and other provisions of the Existing Agreement in certain
particulars. The Required Lenders and the Administrative Agent have agreed to
such amendments, on the terms and conditions set forth herein.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

         SECTION 1. AMENDMENTS TO EXISTING AGREEMENT. The Existing Agreement is,
effective as of the date hereof and subject to the satisfaction of the
conditions precedent set forth in Section 2 hereof, hereby amended as follows:

         (a)      NEW DEFINITIONS. The following new definitions are hereby
added to Section 1.01 in the appropriate alphabetical order:

                  "ADVANCES" has the meaning assigned to such term in the
         definition of "Receivables Purchase Facility" contained in this Section
         1.01.

                  "DISPOSE" has the meaning assigned to such term in Section
         6.04; and the terms "DISPOSITION" and "DISPOSED" shall have correlative
         meanings.

                  "MINIMUM ADVANCE PERCENTAGE" means, in respect of any
         Receivables Purchase Facility, a percentage equal to the greater of (i)
         80% less the reserves (expressed as a percentage) established under
         such Receivables Purchase Facility in respect of dilutive factors with
         respect to the accounts receivable Disposed of to the Purchasers
         thereunder or securing Advances thereunder, as the case may be, or (ii)
         70%.

                  "PARENT SPV" has the meaning assigned to such term in the
         definition of "Receivables Purchase Facility" contained in this Section
         1.01.
<PAGE>
                                                                               3

                  "PURCHASE CONTRACT L/C" has the meaning assigned to such term
         in Section 6.02(h).

                  "PURCHASER INTERESTS" has the meaning assigned to such term in
         the definition of "Receivables Purchase Facility" contained in this
         Section 1.01.

                  "PURCHASERS" has the meaning assigned to such term in the
         definition of "Receivables Purchase Facility" contained in this Section
         1.01.

                  "RECEIVABLES PURCHASE FACILITY" means an accounts receivable
         purchase facility pursuant to which (a) the Borrower will sell accounts
         receivable arising from the provision of electricity to a newly
         created, wholly-owned bankruptcy remote special purpose subsidiary of
         the Borrower (the "SPV") and (b) either (i) the SPV (or a newly
         created, wholly-owned bankruptcy remote special purpose subsidiary of
         Sierra Pacific Resources (the "PARENT SPV") to which the SPV may first
         sell such accounts receivable) will sell undivided percentage ownership
         interests in such accounts receivable (the "PURCHASER INTERESTS") to
         the various financial institutions party to such facility (the
         "PURCHASERS"), or (ii) the Purchasers will make advances ("ADVANCES")
         to the SPV or the Parent SPV in respect of and secured by such accounts
         receivable.

                  "RELATED SECURITY" means, with respect to any accounts
         receivable of the Borrower, the SPV or the Parent SPV (as applicable),
         (i) all Liens and property subject thereto from time to time, if any,
         purporting to secure payment of such accounts receivable, whether
         pursuant to the contract related to such accounts receivable or
         otherwise, (ii) all guaranties, letters of credit, insurance and other
         agreements or arrangements of whatever character from time to time
         supporting or securing payment of such accounts receivable whether
         pursuant to the contract related to such accounts receivable or
         otherwise, (iii) all service contracts and other contracts and
         agreements associated with such accounts receivable, (iv) all books and
         records related to such accounts receivable, and (v) all proceeds of
         any of the foregoing.

                  "SPV" has the meaning assigned to such term in the definition
         of "Receivables Purchase Facility" contained in this Section 1.01.

<PAGE>
                                                                               4

         (b)      REPORTING REQUIREMENTS. Section 5.01 is hereby amended by
adding the following new subsections (k) and (l) at the end thereof:

                  "(k)     CASH RECEIPTS AND DISBURSEMENTS. The Borrower shall
         deliver to the Administrative Agent, with a copy for each Lender, on
         the first Wednesday of every two-calendar-week period, a statement of
         projected weekly cash receipts and cash disbursements for at least the
         immediately succeeding 12-calendar-week period, together with a
         comparison of the projected cash receipts and disbursements to actual
         cash receipts and disbursements for the immediately preceding
         two-calendar-week period, in each case in substantially the form set
         forth as Exhibit E, duly completed and signed by a Responsible Officer
         of the Borrower.

                  (l)      MONTHLY FINANCIAL REPORTS. As soon as practicable,
         and in any event within three Business Days, after the Borrower issues
         its monthly management-prepared financial statements, the Borrower
         shall deliver such financial statements to the Administrative Agent,
         with a copy for each Lender."

         (c)      LIENS. Section 6.02 is hereby amended by:

                  (i)      deleting the word "and" after the semicolon at the
         end of subsection (f) thereof;

                  (ii)     deleting clause (iv) contained in the proviso to
         subsection (g) thereof in its entirety and substituting therefor the
         following new clause (iv):

                  "(iv) the aggregate amount secured by all Liens described in
                  this Section 6.02(g) shall not at any time exceed (A)
                  $50,000,000 minus (B) the aggregate amount of cash, cash
                  equivalents, marketable securities, instruments and other
                  investment property held in deposit accounts, investment
                  accounts or otherwise with any financial and/or depository
                  institutions and subject to a Lien permitted under subsection
                  (h) below;"

                  (iii)    deleting the period at the end of subsection (g)
         thereof;

                  (iv)     adding the following new subsection (h) immediately
         after subsection (g) thereof:

                           "(h)     Liens, including pledges, rights of offset
                  and bankers' liens, on deposit accounts, instruments,
                  investment accounts and investment property (including

<PAGE>
                                                                               5

                  cash, cash equivalents and marketable securities) from time to
                  time maintained with or held by any financial and/or
                  depository institutions, in each case solely to secure (1) any
                  and all obligations of the Borrower in respect of letters of
                  credit issued from time to time by any such financial and/or
                  depository institutions (or their Affiliates) for the account
                  of the Borrower or any of its Subsidiaries for purposes of
                  supporting the Borrower's or such Subsidiary's obligations now
                  or hereafter owing to gas or other energy suppliers (such
                  letters of credit, collectively, the "PURCHASE CONTRACT
                  L/C'S"), or (2) any and all obligations now or hereafter
                  existing of the Borrower or any of its Subsidiaries in
                  connection with any deposit account, investment account or
                  cash management service (including ACH, Fedwire, CHIPS,
                  concentration and zero balance accounts, and controlled
                  disbursement, lockbox or restricted accounts) now or hereafter
                  provided by any financial and/or depository institutions to or
                  for the benefit of the Borrower, any of its Subsidiaries or
                  any special purpose entity directly or indirectly providing
                  loans to or making receivables purchases from the Borrower or
                  any of its Subsidiaries; PROVIDED, HOWEVER, that the aggregate
                  amount of cash, cash equivalents, marketable securities,
                  instruments and other investment property held in deposit
                  accounts, investment accounts or otherwise with any financial
                  and/or depository institutions and subject to a Lien permitted
                  under this Section 6.02(h) shall not at any time exceed (A)
                  $50,000,000 minus (B) the aggregate amount secured by Liens
                  described in subsection (g) above; and"

                  (v)      adding the following new subsection (i) immediately
          after the new subsection (h) thereof:

                           "(i) Liens in the SPV's accounts receivable and
                  Related Security securing the obligations of the SPV under a
                  Receivables Purchase Facility permitted under Section 6.04(c)
                  (including, without limitation, the SPV's obligation to repay
                  Advances made thereunder)."

         and

                  (vi)     deleting the phrase "to secure any obligations now or
         hereafter owing to such power and/or commodity trading counterparties
         or power suppliers" contained in the penultimate sentence of Section
         6.02 in its entirety and substituting therefor the new phrase "to
         secure any obligations now or hereafter owing to

<PAGE>
                                                                               6

         such power and/or commodity trading counterparties or power suppliers;
         PROVIDED, that, for the avoidance of doubt, this sentence shall not
         prohibit any Liens permitted under Section 6.02(h)(1) securing
         obligations of the Borrower in respect of Purchase Contract L/C's".

         (d)      DISPOSITIONS OF PROPERTIES. Section 6.04 is hereby amended in
its entirety to read as follows:

                  "SECTION 6.04  Dispositions of Properties.

                  The Borrower shall not, and shall not permit any of its
         Subsidiaries to, sell, convey, assign, lease, sale-leaseback, transfer,
         abandon or otherwise dispose of, voluntarily or involuntarily
         (collectively, "DISPOSE"), any of its Properties, or agree, become or
         remain liable contingently or otherwise to do any of the foregoing,
         except that, so long as no Default or Event of Default shall have
         occurred and be continuing or shall exist at such time or after giving
         effect to such transaction, the Borrower and its Subsidiaries may
         Dispose of Property (a) in transactions in the ordinary course of
         business consistent with past practice, (b) that is obsolete, (c)
         comprising accounts receivable and Related Security transferred from
         time to time on a revolving basis to the SPV, the Parent SPV, a
         commercial paper conduit or other purchaser pursuant to a Receivables
         Purchase Facility; PROVIDED that (i) the outstanding amount of capital
         associated with the Purchaser Interests that are Disposed of, or the
         outstanding amount of Advances made in respect of such Disposed
         accounts receivable, as the case may be, pursuant to all Receivables
         Purchase Facilities does not exceed $125,000,000 in the aggregate as of
         any date of determination, and (ii) the aggregate net cash proceeds
         received by the Borrower for all Dispositions of accounts receivable
         and Related Security made pursuant to, or in connection with,
         Receivables Purchase Facilities are not less than the Minimum Advance
         Percentage of the aggregate amount of accounts receivable Disposed of
         in all such Dispositions; PROVIDED, HOWEVER, that, notwithstanding the
         foregoing, upon the occurrence and during the continuance of a Default
         or an Event of Default, the Borrower and its Subsidiaries may continue
         to Dispose of accounts receivable and Related Security pursuant to this
         clause (c) if (and only if) (A) the conditions set forth in clauses (i)
         and (ii) above are satisfied at the time of each such Disposition and
         (B) the cash proceeds received by the Borrower for each such
         Disposition are applied immediately as a prepayment of the Loans
         pursuant to Section 2.08(b); PROVIDED, FURTHER, that each Disposition
         made by the Borrower in reliance on this clause (c) shall constitute a
         representation and warranty of the Borrower, made at the time of such
         Disposition, that the conditions set forth in clauses (i) and (ii)
         above are satisfied at such time, and (d) in transactions other than as
         provided in Section 6.04(a), (b) and (c); PROVIDED that the aggregate
         book

<PAGE>
                                                                               7

         value of all Property Disposed of pursuant to this Section 6.04(d) from
         and after the date hereof shall not exceed $50,000,000."

         (e)      DIVIDENDS AND STOCK REPURCHASES. Section 6.06 is hereby
amended in its entirety to read as follows:

                  "SECTION 6.06  DIVIDENDS AND STOCK REPURCHASES.

                  The Borrower shall not declare or pay, directly or indirectly,
         any dividend, payment or other distribution of assets, properties,
         cash, rights, obligations or securities on account of any share of any
         class of capital stock of the Borrower (except for dividends in the
         form of capital stock), or purchase, redeem, retire, or otherwise
         acquire for value any shares of any class of capital stock of the
         Borrower or any warrants, rights, or options to acquire any such
         shares, now or hereafter outstanding, or make any distribution of
         assets to any of its shareholders."

         (f)      EQUAL AND RATABLE LIEN. Section 6.09(a) is hereby amended by
deleting the period at the end of the first sentence thereof and inserting in
lieu thereof the following:

         "; PROVIDED, HOWEVER, that, subject to Section 2.15(d), no issuer of a
         Purchase Contract L/C shall be required to share with the Lenders any
         collateral granted to such issuer pursuant to Section 6.02(h)(1) if (i)
         such issuer received from the Borrower at the time of the issuance of
         such Purchase Contract L/C a written representation and warranty
         confirming the Borrower's compliance with the provisions of Section
         6.02(h) in connection therewith and (ii) such issuer had no actual
         knowledge at the time of such issuance that the Lien granted by the
         Borrower or any of its Subsidiaries (as the case may be) in such
         collateral constituted a violation of Section 6.02."

         (g)      RESTRICTIVE AGREEMENTS. Section 6.10(a) is hereby amended by
deleting the phrase "the Borrower or any of its Subsidiaries to create" in its
entirety and substituting therefor the new phrase "the Borrower or any of its
Subsidiaries (other than the SPV and/or the Parent SPV in connection with a
Receivables Purchase Facility) to create".

         (h)      PREPAYMENTS AND REDEMPTION OF INDEBTEDNESS. Article VI is
hereby amended by adding the following new Section 6.11 at the end thereof:

                  "SECTION 6.11 PREPAYMENTS AND REDEMPTION OF INDEBTEDNESS.

                  The Borrower shall not purchase, redeem, retire or otherwise
         acquire for value, or set apart any money for a sinking,

<PAGE>
                                                                               8

         defeasance or other analogous fund for the purchase, redemption,
         retirement or other acquisition of, or make any voluntary payment or
         prepayment of the principal of or interest on, or any other amount
         owing in respect of, any of its Indebtedness (other than Indebtedness
         hereunder and under the other Loan Documents), except that (i) the
         Borrower may make payments on the regularly-scheduled payment dates
         with respect to the principal of and interest on its Indebtedness, (ii)
         the Borrower may reimburse the issuer of any letter of credit or
         similar instrument issued for the account of the Borrower (in each case
         to the extent such letter of credit or similar instrument is permitted
         to be issued for the account of the Borrower pursuant to the terms of
         this Agreement) for any drawings made thereunder, together with any
         interest and fees related thereto, at the times required under any
         reimbursement agreement or similar agreement to which the Borrower is a
         party, and (iii) for the avoidance of doubt, this Section 6.11 shall
         not prohibit any payments or prepayments of amounts payable (including,
         without limitation, deferred amounts payable) (other than for borrowed
         money) to the Borrower's gas and power suppliers arising in the
         ordinary course of business."

         (i)      NEW EXHIBIT. Exhibit E attached hereto is hereby deemed to
constitute Exhibit E to the Credit Agreement.

         SECTION 2. CONDITIONS OF EFFECTIVENESS. This Amendment shall become
effective (a) with respect Sections 1(c)(v), 1(d) and 1(g) hereof, as of July 5,
2002, and (b) with respect to all other provisions contained in Section 1
hereof, as of the date first above written, when, and only when, the
Administrative Agent shall have received: (i) counterparts of this Amendment
executed by the Borrower, the Administrative Agent and the Required Lenders,
(ii) for the account of each Lender that delivers an executed counterpart of
this Amendment on or before June 25, 2002, a nonrefundable amendment fee of
0.30% of such Lender's Commitment, in immediately available funds, and (iii) all
of the following documents, each document being dated the date of receipt
thereof by the Administrative Agent (which date shall be the same for all such
documents), in form and substance satisfactory to the Administrative Agent:

                  (A)      A certificate of the Secretary or an Assistant
         Secretary of the Borrower certifying the names, true signatures and
         incumbency of the officers of the Borrower authorized to sign this
         Amendment and any other documents to be delivered hereunder.

                  (B)      A certificate of a Responsible Officer of the
         Borrower (the statements in which shall be true) stating that (1) after
         giving effect to the Waiver Letter, except as disclosed by Sierra
         Pacific Resources in its press release issued on June 11, 2002, the
         representations and warranties set

<PAGE>
                                                                               9

         forth in Article III of the Existing Agreement are true and correct on
         and as of the date hereof, both before and after giving effect to this
         Amendment, as though made on and as of such date, and (2) after giving
         effect to this Amendment, no event has occurred and is continuing that
         constitutes a Default or an Event of Default, and no Default or Event
         of Default would result from the execution, delivery or performance of
         this Amendment or the transactions contemplated hereby.

         SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The Borrower
represents and warrants as follows:

         (a)      The execution and delivery by the Borrower of this Amendment,
and the performance by the Borrower of this Amendment and the Amended Agreement,
(i) are within the Borrower's corporate powers, (ii) have been duly authorized
by all necessary corporate action, and (iii) do not and will not (A) require any
consent or approval of the shareholder of the Borrower (other than any such
consent or approval that has been duly obtained and is in full force and
effect), (B) violate any provision of the articles of incorporation or by-laws
of the Borrower or of law, (C) violate any legal restriction binding on or
affecting the Borrower, (D) result in a breach of, or constitute a default
under, any indenture or loan or credit agreement or any other agreement, lease
or instrument to which the Borrower is a party or by which it or its properties
may be bound or affected, or (E) result in or require the creation of any Lien
(other than pursuant to the Loan Documents) upon or with respect to any of its
properties. This Amendment has been duly executed and delivered by the Borrower.

         (b)      No Governmental Action is required for (i) the due execution
and delivery by the Borrower of this Amendment or (ii) the performance by the
Borrower of this Amendment and the Amended Agreement, other than any such
Governmental Actions that have been duly obtained or made and are in full force
and effect on the date hereof.

         (c)      Each of this Amendment and the Amended Agreement is the legal,
valid and binding obligation of the Borrower enforceable against the Borrower in
accordance with its respective terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or other laws
affecting the enforcement of creditors' rights generally and by general
equitable principles (regardless of whether such enforceability is considered in
a proceeding in equity or at law).

         (d)      Except as disclosed by the Borrower in its reports filed with
the Securities and Exchange Commission prior to the date hereof, there is no
pending or, to the knowledge of the Borrower, threatened action, suit,
investigation, litigation or proceeding affecting the Borrower or any of its
properties before any court, governmental agency or arbitrator, that would
reasonably be expected to materially adversely affect the legality, validity, or
enforceability of, or the ability

<PAGE>
                                                                              10

of the Borrower to perform its obligations under, this Amendment or the Amended
Agreement.

         SECTION 4. REFERENCE TO AND EFFECT ON THE EXISTING AGREEMENT. (a) Upon
the effectiveness of this Amendment: (i) each reference in the Existing
Agreement to "this Agreement", "hereunder", "hereof" or words of like import
referring to the Existing Agreement shall mean and be a reference to the Amended
Agreement; and (ii) each reference in any other Loan Document to "the Credit
Agreement", "thereunder", "thereof" or words of like import referring to the
Existing Agreement shall mean and be a reference to the Amended Agreement.

         (b)      Except as specifically amended above, the Existing Agreement
shall continue to be in full force and effect and is hereby in all respects
ratified and confirmed.

         (c)      The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of the Lenders or the Administrative Agent under the
Existing Agreement or any other Loan Document, nor constitute a waiver of any
provision of the Existing Agreement or any other Loan Document.

         SECTION 5. COSTS AND EXPENSES. The Borrower agrees to pay on demand (i)
all reasonable costs and expenses of the Administrative Agent in connection with
the preparation, negotiation, syndication, execution, delivery, administration
and performance of this Amendment, the Amended Agreement, the other Loan
Documents and the other instruments and documents to be delivered hereunder,
including, without limitation, the reasonable fees and out-of-pocket expenses of
(A) counsel to the Administrative Agent with respect thereto and with respect to
advising the Administrative Agent as to its rights and responsibilities
hereunder and thereunder, and (B) any other consultants or experts that the
Administrative Agent reasonably deems necessary or advisable in connection with
the foregoing, and (ii) all costs and expenses of the Administrative Agent and
each Lender (including, without limitation, reasonable fees and expenses of (A)
counsel to the Administrative Agent and counsel for each Lender and (B) any
other consultants or experts deemed necessary or advisable by the Administrative
Agent) in connection with the enforcement or preservation of rights (whether
through negotiations, legal proceedings or otherwise) under this Amendment, the
Amended Agreement or any other Loan Document.

         SECTION 6. EXECUTION IN COUNTERPARTS. This Amendment may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute but one and the
same instrument. In furtherance of the foregoing, it is understood and agreed
that signatures hereto submitted by facsimile transmission shall be deemed to
be, and shall constitute, original signatures.

<PAGE>
                                                                              11

         SECTION 7. GOVERNING LAW. This Amendment shall be governed by, and
construed in accordance with, the laws of the State of the New York.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>
                                                                             S-1

         IN WITNESS WHEREOF, the parties hereto have caused Amendment to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                        NEVADA POWER COMPANY

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

                                        UNION BANK OF CALIFORNIA, N.A., as
                                        Administrative Agent

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

           Signature Page to Amendment No. 2 to NPC Credit Agreement
<PAGE>
                                                                             S-2

                                        LENDERS
                                        -------

                                        UNION BANK OF CALIFORNIA, N.A.

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

                                        WELLS FARGO BANK,  N.A.

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

                                        BANK ONE, NA

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

                                        BNP PARIBAS

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

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

                                        MELLON BANK, N.A.

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

           Signature Page to Amendment No. 2 to NPC Credit Agreement
<PAGE>
                                                                             S-3

                                        BAYERISCHE LANDESBANK
                                        GIROZENTRALE

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

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

                                        MIZUHO CORPORATE BANK, LTD., formerly
                                        known as The Industrial Bank of
                                        Japan, Limited

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

                                        LEHMAN COMMERCIAL PAPER INC.

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

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

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

           Signature Page to Amendment No. 2 to NPC Credit Agreement
<PAGE>
                                                                             S-4

                                        MERRILL LYNCH BANK USA

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

           Signature Page to Amendment No. 2 to NPC Credit Agreement
<PAGE>
                                   EXHIBIT E
                                   ---------

                          PROJECTED/ACTUAL CASH FLOWS

                                   [ table ]<PAGE>
                                                                    EXHIBIT 10.5

                             CONFIDENTIAL TREATMENT

SIERRA PACIFIC POWER COMPANY HAS REQUESTED THAT THE MARKED PORTIONS OF THIS
DOCUMENT BE ACCORDED CONFIDENTIAL TREATMENT PURSUANT TO RULE 24b-2 UNDER THE
SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

                               MASTER AMENDMENT TO
                     CONFIRMATION AGREEMENTS (SPPC - POWER)

                            Dated as of June 4, 2002

         This Master Amendment to Confirmation Agreements (this "Confirmation
Amendment") provided pursuant to and in accordance with the Western Systems
Power Pool Agreement (the "WSPP Agreement") is made by and between Sierra
Pacific Sierra Pacific Power Company, a Nevada corporation ("Sierra Pacific"),
and Duke Energy Trading and Marketing, L.L.C., a Delaware limited liability
company ("DETM").

         WHEREAS, Sierra Pacific and DETM are currently parties to certain
Confirmation Agreements (as defined in the WSPP Agreement) and the transactions
thereunder, including but not limited to, those listed on Schedule A attached
hereto and made a part hereof (collectively, the "Existing Confirmation
Agreements");

         WHEREAS, Sierra Pacific and DETM desire to set forth in this
Confirmation Amendment certain payment and other terms that will amend and
supplement the Existing Confirmation Agreements and all Confirmation Agreements
executed with respect to future transactions between the parties under the WSPP
Agreement (the "New Confirmation Agreements"); and

         WHEREAS, in consideration of the agreement of the parties to be bound
by the terms hereof, Sierra Pacific and DETM have agreed to execute this
Confirmation Amendment.

         NOW THEREFORE, the parties hereto agree as follows:

1.    Payment Terms Under New Confirmation Agreements.

      (a)   [****]

            (i) [****]

            (ii) [****]

      (b)   [****]

            (i) [****]

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.

<PAGE>

            (ii) [****]

      (c)   [****]

2.    Representations and Warranties.

      (a)   Sierra Pacific. Sierra Pacific represents and warrants that it has
            the right, power, and corporate authority to enter into and perform
            its obligations under this Confirmation Amendment. Sierra Pacific's
            execution, delivery and

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
            performance of this Agreement has been duly authorized, no further
            action is necessary on the part of Sierra Pacific and no consents or
            other approvals are required to be obtained in connection therewith.
            The execution and delivery of this Confirmation Amendment does not
            contravene, or constitute a default under, any provision of
            applicable law or regulation or its organizational documents or any
            material agreement, judgment, injunction, order, decree or other
            instrument binding upon it or result in any creation or imposition
            of any lien on any of its assets. This Confirmation Amendment has
            been duly and validly executed and delivered by Sierra Pacific and,
            assuming the due execution and delivery by the other party hereto,
            constitutes a valid and binding obligation of Sierra Pacific,
            enforceable against it in accordance with its terms subject to
            applicable bankruptcy, reorganization, insolvency, receivership or
            other similar laws affecting creditors' rights generally and
            equitable principles of general application (regardless of whether
            enforcement is sought in a proceeding in equity or at law).

      (b)   DETM. DETM represents and warrants to Sierra Pacific that DETM has
            the right, power, and authority to enter into and perform its
            obligations under this Confirmation Amendment. The execution,
            delivery and performance of this Confirmation Amendment by DETM has
            been duly authorized, no further action is necessary on the part of
            DETM and no consents or other approvals are required to be obtained
            in connection therewith. The execution and delivery of this
            Confirmation Amendment does not contravene, or constitute a default
            under, any provision of applicable law or regulation or its
            organizational documents or any material agreement, judgment,
            injunction, order, decree or other instrument binding upon it or
            result in any creation or imposition of any lien on any of its
            assets. This Confirmation Amendment has been duly and validly
            executed and delivered by DETM and, assuming the due execution and
            delivery by the other party hereto, constitutes a valid and binding
            obligation of DETM, enforceable against it in accordance with its
            terms subject to applicable bankruptcy, reorganization, insolvency,
            receivership or other similar laws affecting creditors' rights
            generally and equitable principles of general application
            (regardless of whether enforcement is sought in a proceeding in
            equity or at law).

3.    Defaults.

      (a)   Events of Default. In addition to the Events of Default under the
            WSPP Agreement, the occurrence of any one or more of the following
            events shall also constitute an Event of Default by Sierra Pacific
            under the WSPP Agreement and all Confirmation Agreements between
            Sierra Pacific and DETM until all energy and gas have been delivered
            and paid for under the Covered Short Positions:

            (i)   If Sierra Pacific fails to pay or prepay when due any amount
                  under this Confirmation Amendment.
<PAGE>
            (ii)  Sierra Pacific defaults in any other of its obligations under
                  this Confirmation Amendment and any such default continues for
                  five (5) days.

            (iii) A default, event of default or other similar event or
                  condition of Sierra Pacific with respect to any indebtedness
                  for borrowed money which results in such indebtedness becoming
                  immediately due and payable has occurred and is continuing.

            (iv)  A default, event of default or other similar event or
                  condition of Sierra Pacific with respect to any other
                  agreement between Sierra Pacific and DETM or any of its
                  affiliates has occurred and is continuing, including, without
                  limitation, under the Marketing Services Agreement or the
                  Master Gas Agreement.

      (b)   Notice of Default. Sierra Pacific shall notify DETM in writing
            promptly of the occurrence of any Event of Default by it.

      (c)   Remedies. In addition to the rights and remedies upon an Event of
            Default set forth in the WSPP Agreement and in any Confirmation
            Agreement and at law and in equity, upon the occurrence of an Event
            of Default the non-defaulting party may, without prior notice and in
            addition to and not in limitation of its other rights and remedies,
            setoff (including, without limitation, by setoff, offset,
            combination of accounts, deduction, counterclaim, retention or
            withholding across or within each or all agreements) any and all
            sums or obligations (whether arising under this Confirmation
            Amendment, the Confirmation Agreements or any other agreement and
            whether matured or unmatured) owed or otherwise accrued by the
            defaulting party to the non-defaulting party or any of its
            affiliates against any sums or obligations owed or otherwise accrued
            by the non-defaulting party or any of its affiliates to the
            defaulting party. Sierra Pacific shall pay all reasonable costs and
            expenses of collection incurred by or on behalf of the DETM as a
            result of an Event of Default, including reasonable attorney's fees.

4.    Miscellaneous.

      (a)   Limitation on Waiver. The rights and remedies of DETM under this
            Confirmation Amendment shall be cumulative and not alternative. No
            waiver by DETM of any right or remedy under this Confirmation
            Amendment shall be effective unless in a writing signed by DETM. No
            failure to exercise, delay in exercising, or single or partial
            exercise of any right or remedy by DETM, and no course of dealing
            between DETM on the one hand and Sierra Pacific on the other hand,
            shall constitute a waiver of, or shall preclude any other or further
            exercise of the same right or remedy.
<PAGE>
      (b)   Confirmation Amendment. This Confirmation Amendment may be amended,
            modified or supplemented only in writing, signed by each of the
            parties hereto.

      (c)   Notices. Notices given under this Confirmation Amendment, including
            any notice of a change of address, shall be addressed as provided
            under the applicable Confirmation Agreement and to the additional
            addressees:

            (i)   if to Sierra Pacific, to William E. Peterson, Sr. V.P. &
                  General Counsel, 6100 Neil Road, P.O. Box 10100, Reno, NV
                  89520-0024, Fax: (775)834-5959, email:
                  wpeterson@sierrapacific.com; and

            (ii)  if to DETM, to Duke Energy Marketing and Trading, L.L.C. to
                  JoAnn Russell, General Counsel, 5400 Westheimer Court,
                  Houston, TX 77056-5310, Fax: (713) 627-5122, email:
                  jprussell@duke-energy.com.

      (d)   Severability. If any term, provision, covenant or restriction of
            this Confirmation Amendment is held by a court of competent
            jurisdiction to be invalid, illegal, void or unenforceable, the
            remainder of the terms, provisions, covenants and restrictions set
            forth herein shall remain in full force and effect and shall in no
            way be affected, impaired or invalidated, and the parties hereto
            shall use their best efforts to find and employ an alternative means
            to achieve the same or substantially the same result as that
            contemplated by such term, provision, covenant or restriction. It is
            the intention of the parties that they would have executed the
            remaining terms, provisions, covenants and restrictions without
            including any of such that may be hereafter declared invalid,
            illegal, void or unenforceable.

      (e)   Governing Law. This Confirmation Amendment shall be governed by and
            construed in accordance with the laws of the State of Utah, without
            regard to the conflicts of laws rules thereof.

      (f)   Assignment. Sierra Pacific may not assign or transfer this
            Confirmation Amendment or the obligations owing thereunder without
            the prior written consent of DETM in its sole discretion. DETM may
            assign or transfer this Confirmation Amendment or any obligations
            owing thereunder to any affiliate so long as such entity has a
            credit status which, in Sierra Pacific's reasonable opinion, is at
            least as high as that of DETM.

      (g)   Parties Bound. This Confirmation Amendment shall bind Sierra Pacific
            and DETM and their respective successors and assigns. The Existing
            Confirmation Agreements and all transactions thereunder, as amended
            hereby, are hereby reaffirmed by each of Sierra Pacific and DETM and
            remain in full force and effect.

      (h)   Section Headings. The headings in this Confirmation Amendment are
            for convenience of reference only and shall not limit or otherwise
            affect the meaning hereof.
<PAGE>
      (i)   References. All words used in this Confirmation Amendment shall be
            construed to be of such number and gender as the context requires or
            permits. Unless a particular context clearly provides otherwise, the
            words "hereof" and "hereunder" and similar references refer to this
            Confirmation Amendment in its entirety and not to any specific
            section or subsection hereof.

      (j)   Definitions. All capitalized terms not defined herein shall have the
            meaning ascribed to them in the WSPP Agreement.

                            [signature page follows]
<PAGE>
         IN WITNESS WHEREOF, the parties have executed this Confirmation
Amendment as of the date first stated above.

                                       SIERRA PACIFIC POWER COMPANY

                                       By:___________________________
                                       Name:
                                       Title:

                                       DUKE ENERGY TRADING AND MARKETING, L.L.C.

                                       By:____________________________
                                       Name:
                                       Title:
<PAGE>
                                   SCHEDULE A
                        EXISTING CONFIRMATION AGREEMENTS

                                     [***]

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>

                                   SCHEDULE B
                             COVERED SHORT POSITIONS

                                (see attached)
<PAGE>
[DUKE ENERGY]                                                       [MOBIL LOGO]

                             CONFIRMATION AGREEMENT

<TABLE>
<S>           <C>                                                 <C>               <C>
SELLER:       Duke Energy Trading and Marketing, L.L.C.           BUYER:            Sierra Pacific Power Company
              4 Triad Center, Suite 1000                                            P.O. Box 230
              Salt Lake City, UT  84180                                             Las Vegas, NV 89151-0230

Attn:         Scott Krantz                                        Attn:             Mike Smart
Phone:        (801) 531-5467                                      Phone:            (702) 367-5880
Fax:          (801) 531-5490                                      Fax:              (702) 367-5869
</TABLE>

This letter shall confirm transactions arranged on June 4, 2002 between Duke
Energy Trading and Marketing, L.L.C. (DETM) and Sierra Pacific Power Company
(SPPC). The terms and conditions of this transaction are as follows:

DETM to sell and deliver and SPPC to purchase and receive power under five (5)
simultaneous block transactions covered by this confirmation under the details
and terms contained herein.

BLOCK #1

DELIVERY RATE:                  150 Megawatts Per Hour

CONTRACT QUANTITY:              62,400 Total Megawatt Hours

DELIVERY TERM:                 July 1, 2002 - July 31, 2002

CONTRACT SCHEDULE:             Monday - Saturday
                               HE 07:00 - HE 22:00 PPT
                               Excluding NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130. Preschedules and
                               control area information will be confirmed by
                               DETM and SPPC by 12:00pm PPT on the appropriate
                               scheduling day prior to the day of delivery.

TYPE OF SERVICE:               ****

PAYMENT TERMS:                 Payment shall be made according to the payment
                               terms set forth in Section 4 of that certain
                               Master Amendment to Confirmation Agreements by
                               and between SPPC and DETM, dated June 4, 2002.

BLOCK #2

DELIVERY RATE:                 50 Megawatts Per Hour

CONTRACT QUANTITY:             12,400 Total Megawatt Hours

DELIVERY TERM:                 July 1, 2002 - July 31, 2002

CONTRACT SCHEDULE:             Monday - Sunday
                               HE 13:00 - HE 20:00 PPT
                               All Days, Including NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130.

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
                               Preschedules and control area information will be
                               confirmed by DETM and SPPC by 12:00pm PPT on the
                               appropriate scheduling day prior to the day of
                               delivery.

TYPE OF SERVICE:               ****

PAYMENT TERMS:                 Payment shall be made according to the
                               payment terms set forth in Section 4 of that
                               certain Master Amendment to Confirmation
                               Agreements by and between SPPC and DETM, dated
                               June 4, 2002.

BLOCK #3

DELIVERY RATE:                 50 Megawatts Per Hour

CONTRACT QUANTITY:             20,800 Total Megawatt Hours

DELIVERY TERM:                 July 1, 2002 - July 31, 2002

CONTRACT SCHEDULE:             Monday - Saturday
                               HE 07:00 - HE 22:00 PPT
                               Excluding NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130. Preschedules and
                               control area information will be confirmed by
                               DETM and SPPC by 12:00pm PPT on the appropriate
                               scheduling day prior to the day of delivery.

TYPE OF SERVICE:               ****

PAYMENT                        TERMS: Payment shall be made according to the
                               payment terms set forth in Section 4 of that
                               certain Master Amendment to Confirmation
                               Agreements by and between SPPC and DETM, dated
                               June 4, 2002.

BLOCK #4

DELIVERY RATE:                 50 Megawatts Per Hour

CONTRACT QUANTITY:             20,800 Total Megawatt Hours

DELIVERY TERM:                 July 1, 2002 - July 31, 2002

CONTRACT SCHEDULE:             Monday - Saturday
                               HE 07:00 - HE 22:00 PPT
                               Excluding NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130. Preschedules and
                               control area information will be confirmed by
                               DETM and SPPC by 12:00pm PPT on the appropriate
                               scheduling day prior to the day of delivery.

TYPE OF SERVICE:               ****

PAYMENT                        TERMS: Payment shall be made according to the
                               payment terms set forth in Section 4 of that
                               certain Master Amendment to Confirmation
                               Agreements by and between SPPC and DETM, dated
                               June 4, 2002.

BLOCK #5

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
DELIVERY RATE:                 75 Megawatts Per Hour

CONTRACT QUANTITY:             31,200 Total Megawatt Hours

DELIVERY TERM:                 July 1, 2002 - July 31, 2002

CONTRACT SCHEDULE:             Monday - Saturday
                               HE 07:00 - HE 22:00 PPT
                               Excluding NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130. Preschedules and
                               control area information will be confirmed by
                               DETM and SPPC by 12:00pm PPT on the appropriate
                               scheduling day prior to the day of delivery.

TYPE OF SERVICE:               ****

PAYMENT                        TERMS: Payment shall be made according to the
                               payment terms set forth in Section 4 of that
                               certain Master Amendment to Confirmation
                               Agreements by and between SPPC and DETM, dated
                               June 4, 2002.

SPECIAL TERMS &
CONDITIONS:

This Confirmation Agreement is being provided pursuant to, in accordance with
and is subject to the Western System Power Pool Agreement ("Agreement") as may
be amended from time to time and as supplemented and modified herein, and that
certain Master Amendment to Confirmation Agreements by and between Buyer and
Seller, dated June 4, 2002, and constitutes part of and is subject to all of the
terms and provisions of such Agreements. Terms used but not defined herein shall
have the meanings ascribed to them in the Agreements.

In the event of a conflict between this Confirmation Agreement and the WSPP
Agreement, this Confirmation Agreement shall govern.

Please confirm that the terms and conditions stated herein accurately reflect
your understanding of our agreement by signing and returning by facsimile to
Duke Energy Trading and Marketing, L.L.C. at (801) 531-5490.

By:

       ___________________________________________    Date: ____________________
         Duke Energy Trading and Marketing, L.L.C.
By:

       ___________________________________________    Date: ____________________
         Sierra Pacific Power Company

If the description contained in this Confirmation Agreement is contrary to your
understanding of the agreement, please notify DETM via telecopy by the close of
the fifth business day following your receipt of this Confirmation Agreement.
Your failure to notify DETM of any such contrary understanding by such time
constitutes your confirmation of the transaction as described above.

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
[DUKE ENERGY LOGO]                                                  [MOBIL LOGO]

                             CONFIRMATION AGREEMENT

<TABLE>
<S>           <C>                                                 <C>               <C>
SELLER:       Duke Energy Trading and Marketing, L.L.C.           BUYER:            Sierra Pacific Power Company
              4 Triad Center, Suite 1000                                            P.O. Box 230
              Salt Lake City, UT  84180                                             Las Vegas, NV 89151-0230

Attn:         Scott Krantz                                        Attn:             Mike Smart
Phone:        (801) 531-5467                                      Phone:            (702) 367-5880
Fax:          (801) 531-5490                                      Fax:              (702) 367-5869
</TABLE>

This letter shall confirm transactions arranged on June 4, 2002 between Duke
Energy Trading and Marketing, L.L.C. (DETM) and Sierra Pacific Power Company
(SPPC). The terms and conditions of this transaction are as follows:

DETM to sell and deliver and SPPC to purchase and receive power under five (5)
simultaneous block transactions covered by this confirmation under the details
and terms contained herein.

BLOCK #1

DELIVERY RATE:                 150 Megawatts Per Hour

CONTRACT QUANTITY:             64,800 Total Megawatt Hours

DELIVERY TERM:                 August 1, 2002 - August 31, 2002

CONTRACT SCHEDULE:             Monday - Saturday
                               HE 07:00 - HE 22:00 PPT
                               Excluding NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130. Preschedules and
                               control area information will be confirmed by
                               DETM and SPPC by 12:00pm PPT on the appropriate
                               scheduling day prior to the day of delivery.

TYPE OF SERVICE:               ****

PAYMENT TERMS:                 Payment shall be made according to the payment
                               terms set forth in Section 4 of that certain
                               Master Amendment to Confirmation Agreements by
                               and between SPPC and DETM, dated June 4, 2002.

BLOCK #2

DELIVERY RATE:                 50 Megawatts Per Hour

CONTRACT QUANTITY:             12,400 Total Megawatt Hours

DELIVERY TERM:                 August 1, 2002 - August 31, 2002

CONTRACT SCHEDULE:             Monday - Sunday
                               HE 13:00 - HE 20:00 PPT
                               All Days, Including NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130.

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
                               Preschedules and control area information will be
                               confirmed by DETM and SPPC by 12:00pm PPT on the
                               appropriate scheduling day prior to the day of
                               delivery.

TYPE OF SERVICE:               ****

PAYMENT TERMS:                 Payment shall be made according to the payment
                               terms set forth in Section 4 of that certain
                               Master Amendment to Confirmation Agreements by
                               and between SPPC and DETM, dated June 4, 2002.

BLOCK #3

DELIVERY RATE:                 50 Megawatts Per Hour

CONTRACT QUANTITY:             21,600 Total Megawatt Hours

DELIVERY TERM:                 August 1, 2002 - August 31, 2002

CONTRACT SCHEDULE:             Monday - Saturday
                               HE 07:00 - HE 22:00 PPT
                               Excluding NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130. Preschedules and
                               control area information will be confirmed by
                               DETM and SPPC by 12:00pm PPT on the appropriate
                               scheduling day prior to the day of delivery.

TYPE OF SERVICE:               ****

PAYMENT TERMS:                 Payment shall be made according to the payment
                               terms set forth in Section 4 of that certain
                               Master Amendment to Confirmation Agreements by
                               and between SPPC and DETM, dated June 4, 2002.

BLOCK #4

DELIVERY RATE:                 50 Megawatts Per Hour

CONTRACT QUANTITY:             21,600 Total Megawatt Hours

DELIVERY TERM:                 August 1, 2002 - August 31, 2002

CONTRACT SCHEDULE:             Monday - Saturday
                               HE 07:00 - HE 22:00 PPT
                               Excluding NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130. Preschedules and
                               control area information will be confirmed by
                               DETM and SPPC by 12:00pm PPT on the appropriate
                               scheduling day prior to the day of delivery.

TYPE OF SERVICE:               ****

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
PAYMENT TERMS:                 Payment shall be made according to the payment
                               terms set forth in Section 4 of that certain
                               Master Amendment to Confirmation Agreements by
                               and between SPPC and DETM, dated June 4, 2002.

BLOCK #5

DELIVERY RATE:                 75 Megawatts Per Hour

CONTRACT QUANTITY:             32,400 Total Megawatt Hours

DELIVERY TERM:                 August 1, 2002 - August 31, 2002

CONTRACT SCHEDULE:             Monday - Saturday
                               HE 07:00 - HE 22:00 PPT
                               Excluding NERC Holidays

PRICE:                         $**********

DELIVERY POINT:                ****

SCHEDULING:                    Duke Energy Trading and Marketing L.L.C. 24-Hour
                               Dispatch: (801) 531-5130. Preschedules and
                               control area information will be confirmed by
                               DETM and SPPC by 12:00pm PPT on the appropriate
                               scheduling day prior to the day of delivery.

TYPE OF SERVICE:               ****

PAYMENT TERMS:                 Payment shall be made according to the payment
                               terms set forth in Section 4 of that certain
                               Master Amendment to Confirmation Agreements by
                               and between SPPC and DETM, dated June 4, 2002.

SPECIAL TERMS &
CONDITIONS:

This Confirmation Agreement is being provided pursuant to, in accordance with
and is subject to the Western System Power Pool Agreement ("Agreement") as may
be amended from time to time and as supplemented and modified herein, and that
certain Master Amendment to Confirmation Agreements by and between Buyer and
Seller, dated June 4, 2002, and constitutes part of and is subject to all of the
terms and provisions of such Agreements. Terms used but not defined herein shall
have the meanings ascribed to them in the Agreements.

In the event of a conflict between this Confirmation Agreement and the WSPP
Agreement, this Confirmation Agreement shall govern.

Please confirm that the terms and conditions stated herein accurately reflect
your understanding of our agreement by signing and returning by facsimile to
Duke Energy Trading and Marketing, L.L.C. at (801) 531-5490.

By:

       ___________________________________________  Date:____________________
         Duke Energy Trading and Marketing, L.L.C.
By:

       ___________________________________________  Date: ____________________
         Sierra Pacific Power Company

If the description contained in this Confirmation Agreement is contrary to your
understanding of the agreement, please notify DETM via telecopy by the close of
the fifth business day following your receipt of this Confirmation Agreement.
Your failure to notify DETM of any such contrary understanding by such time
constitutes your confirmation of the transaction as described above.

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
                                   SCHEDULE D
                              CERTAIN TRANSACTIONS

                                 (see attached)
<PAGE>

                                   EXHIBIT "A"
                                       to
                    NATURAL GAS SALES AND PURCHASE AGREEMENT
                               Dated: July 1, 1997
                           DETM Agreement No. GSA 408

Seller                                          Buyer
------                                          -----
DUKE ENERGY TRADING AND MARKETING, L.L.C.       SIERRA PACIFIC POWER COMPANY
4 Triad Center                                  6100 Neil Road
Suite 1000                                      PO Box 10100
Salt Lake City, UT  84180                       Reno, NV  89520
Representative:  Steve Bateson                  Representative:  Mike Smart
Fax Number:  (801) 531-5490                     Fax Number:  (702) 367-5869

EXHIBIT DATE:           June 4, 2002

TERM:                   June 15, 2002 (8:00 a.m. MST) through October 1, 2002
                        (7:59 a.m. MST)

SERVICE LEVEL:          Firm Obligation

PRICE:                  From June 15, 2002 (8:00 a.m. MST) through July 1, 2002
                        (7:59 a.m. MST), the Price shall be ***** per MMBtu.

                        From July 1, 2002 (8:00 a.m. MST) through August 1, 2002
                        (7:59 a.m. MST), the Price shall be ***** per MMBtu.

                        From August 1, 2002 (8:00 a.m. MST) through September 1,
                        2002 (7:59 a.m. MST), the Price shall be ***** per
                        MMBtu.

                        From September 1, 2002 (8:00 a.m. MST) through October
                        1, 2002 (7:59 a.m. MST), the Price shall be ***** per
                        MMBtu.

QUANTITY:               ***** MMBtu per day

DELIVERY POINT(S):      *****

PAYMENT PROVISION:      Payment shall be made according to the payment terms set
                        forth in Section 4 of that certain Master Amendment to
                        Confirmation Agreements ("Amendment") by and between
                        Duke Energy Trading and Marketing, L.L.C. (DETM) and
                        Sierra Pacific Power Company (SPC), dated June 4, 2002.

CONFLICT:               In the event of a conflict between the above-referenced
                        Natural Gas Sales and Purchase Agreement dated July 1,
                        1997 and this Exhibit "A," this Exhibit "A" shall
                        govern.

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
THIS EXHIBIT "A" IS BEING PROVIDED PURSUANT TO, IN ACCORDANCE WITH, AND IS
SUBJECT TO THE ABOVE-REFERENCED NATURAL GAS SALES AND PURCHASE AGREEMENT DATED
JULY 1, 1997 AS MAY BE AMENDED FROM TIME TO TIME AND AS SUPPLEMENTED AND
MODIFIED HEREIN, AND THAT CERTAIN MASTER AMENDMENT TO CONFIRMATION AGREEMENTS BY
AND BETWEEN DETM AND SPC, DATED JUNE 4, 2002.

IF THE DESCRIPTION CONTAINED IN THIS EXHIBIT "A" IS CONTRARY TO YOUR
UNDERSTANDING OF THE AGREEMENT, PLEASE NOTIFY DETM VIA TELECOPY BY THE CLOSE OF
THE SECOND BUSINESS DAY FOLLOWING YOUR RECEIPT OF THIS EXHIBIT "A." YOUR FAILURE
TO NOTIFY DETM OF ANY SUCH CONTRARY UNDERSTANDING BY SUCH TIME CONSTITUTES YOUR
CONFIRMATION OF THE TRANSACTION AS DESCRIBED ABOVE.

ACCEPTED and AGREED to:

Seller                                          Buyer

DUKE ENERGY TRADING AND MARKETING, L.L.C. SIERRA PACIFIC POWER COMPANY

By:   _______________________________     By:   ______________________________

Date: _______________________________     Date: ______________________________

<PAGE>

                                   EXHIBIT "A"
                                       to
                    NATURAL GAS SALES AND PURCHASE AGREEMENT
                               Dated: July 1, 1997
                           DETM Agreement No. GSA 408

Seller                                          Buyer
------                                          -----
DUKE ENERGY TRADING AND MARKETING, L.L.C.       SIERRA PACIFIC POWER COMPANY
4 Triad Center                                  6100 Neil Road
Suite 1000                                      PO Box 10100
Salt Lake City, UT  84180                       Reno, NV  89520
Representative:  Steve Bateson                  Representative:  Mike Smart
Fax Number:  (801) 531-5490                     Fax Number:  (702) 367-5869

EXHIBIT DATE:           June 4, 2002

TERM:                   July 1, 2002 (8:00 a.m. MST) through October 1, 2002
                        (7:59 a.m. MST)

SERVICE LEVEL:          Firm Obligation

PRICE:                  From July 1, 2002 (8:00 a.m. MST) through August 1, 2002
                        (7:59 a.m. MST), the Price shall be ***** per MMBtu.

                        From August 1, 2002 (8:00 a.m. MST) through September 1,
                        2002 (7:59 a.m. MST), the Price shall be ***** per
                        MMBtu.

                        From September 1, 2002 (8:00 a.m. MST) through October
                        1, 2002 (7:59 a.m. MST) the Price shall be ***** per
                        MMBtu.

QUANTITY:               ***** MMBtu per day

DELIVERY POINT(S):      *****

PAYMENT PROVISION:      Payment shall be made according to the payment terms set
                        forth in Section 4 of that certain Master Amendment to
                        Confirmation Agreements by and between Duke Energy
                        Trading and Marketing, L.L.C. (DETM) and Sierra Pacific
                        Power Company (SPC), dated June 4, 2002.

CONFLICT:               In the event of a conflict between the above-referenced
                        Natural Gas Sales and Purchase Agreement dated July 1,
                        1997 and this Exhibit "A," this Exhibit "A" shall
                        govern.

CONFIDENTIAL MATERIAL OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. ASTERISKS (***) DENOTE SUCH OMISSIONS.
<PAGE>
THIS EXHIBIT "A" IS BEING PROVIDED PURSUANT TO, IN ACCORDANCE WITH, AND IS
SUBJECT TO THE ABOVE-REFERENCED NATURAL GAS SALES AND PURCHASE AGREEMENT DATED
JULY 1, 1997 AS MAY BE AMENDED FROM TIME TO TIME AND AS SUPPLEMENTED AND
MODIFIED HEREIN, AND THAT CERTAIN MASTER AMENDMENT TO CONFIRMATION AGREEMENTS BY
AND BETWEEN DETM AND SPC, DATED JUNE 4, 2002.

IF THE DESCRIPTION CONTAINED IN THIS EXHIBIT "A" IS CONTRARY TO YOUR
UNDERSTANDING OF THE AGREEMENT, PLEASE NOTIFY DETM VIA TELECOPY BY THE CLOSE OF
THE SECOND BUSINESS DAY FOLLOWING YOUR RECEIPT OF THIS EXHIBIT "A." YOUR FAILURE
TO NOTIFY DETM OF ANY SUCH CONTRARY UNDERSTANDING BY SUCH TIME CONSTITUTES YOUR
CONFIRMATION OF THE TRANSACTION AS DESCRIBED ABOVE.

ACCEPTED and AGREED to:

Seller                                          Buyer

DUKE ENERGY TRADING AND MARKETING, L.L.C. SIERRA PACIFIC POWER COMPANY

By:   ______________________________      By:   _____________________________

Date: ______________________________      Date: _____________________________

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