S&P: Sierra Pacific Resources unchanged

Standard & Poor's said that Sierra Pacific Resources' (SRP, B+/positive/B-2) announcement that it plans to explore potential opportunities for the sale of its 50% interest in the Tuscarora Gas Transmission Company, while favorable to credit quality, will not affect the company's ratings.

Rapid load growth at SRP's utility subsidiaries, specially Nevada Power Company, combined with a large short-capacity position, have necessitated a large capital expenditure program, which is forecast to be $3.6 billion over the next five years, the agency said.

S&P added that this limits deleveraging potential to the level of operating earnings retained by the utilities.

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