EXHIBIT 12.3
SIERRA PACIFIC POWER COMPANY
RATIOS OF EARNINGS TO FIXED CHARGES
(Dollars in Thousands)

     
Year ended December 31,
  
     
2008
    
2007
    
2006
    
2005
    
2004
  
                                 
EARNINGS AS DEFINED:
                              
 
Income (Loss) From Continuing Operations
                              
 
After Interest Charges
   $ 90,582     $ 65,667     $ 57,709     $ 52,074     $ 18,577  
 
Income Taxes
     37,603       26,009       27,829       28,379       325  
 
Income (Loss) From Continuing Operations
                                        
 
before Income Taxes
     128,185       91,676       85,538       80,453       18,902  
                                           
 
Fixed Charges
     84,478       75,655       79,093       72,652       67,685  
 
Capitalized Interest (allowance for borrowed funds used during construction)
     (9,464 )     (12,771 )     (5,505 )     (1,504 )     (2,849 )
      $ 203,199     $ 154,560     $ 159,126     $ 151,601     $ 83,738  
 
Total
                                        
                                           
FIXED CHARGES AS DEFINED:
   $ 84,478     $ 75,655     $ 79,093     $ 72,652     $ 67,685  
 
Interest Expensed and Capitalized (1)
     -       -       -       -       -  
 
Total
   $ 84,478     $ 75,655     $ 79,093     $ 72,652     $ 67,685  
                                           
RATIO OF EARNINGS TO FIXED CHARGES
     2.41       2.04       2.01       2.09       1.24  
                                           
                                           
(1)
Includes amortization of premiums, discounts, and capitalized debt expense and interest component of rent expense.
          

For the purpose of calculating the ratios of earnings to fixed charges, “Fixed charges” represent the aggregate of interest charges on short-term and long-term debt (whether expensed or capitalized) and the portion of rental expense deemed attributable to interest.  “Earnings” represents pre-tax income (or loss) from continuing operations before, solely with respect to the years ended December 31, 2006, 2005 and 2004,  pre-tax preferred stock dividend requirement plus fixed charges (excluding capitalized interest).