April 23, 2009 (FinancialWire) — NV Energy, Inc.’s (NYSE: NVE) Sierra Pacific Power unit has agreed to sell its California electric distribution and generation assets to California Pacific Electric Co., a newly formed company jointly owned by Canadian power companies Algonquin Power Income Fund (OTC: AGQNF) (TSX: APIF) and Emera Inc. (OTC: EMRAF) (TSX: EMA).

Under terms of the agreement, Calpeco will pay Sierra Pacific Power Company a cash purchase price of around $116 million, plus working capital to be determined at the date of closing.

Calpeco will acquire the California electric distribution and related generation assets of Sierra Pacific Power, which currently provide electric distribution service to around 47,000 California based customers in the Lake Tahoe region.

The transaction is scheduled to close in 2010, following California and Nevada state regulatory and Federal Energy Regulatory Commission approvals, and clearance under U.S. antitrust law.

Las Vegas, NV Energy is a holding company whose principal subsidiaries, Nevada Power Co. and Sierra Pacific Power Co, are doing business in Nevada as NV Energy. The company provides energy services and products to around 2.4 million citizens of Nevada as well as around 40 million tourists annually.

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