SIERRA PACIFIC POWER CO
SERVICE AGREEMENT NO. 101.A FOR LONG-TERM FIRM
<DOCUMENT>
<TYPE>EX-10.(H)
<SEQUENCE>11
<FILENAME>b45693spexv10wxhy.txt
<DESCRIPTION>SERVICE AGREEMENT NO. 101.A FOR LONG-TERM FIRM
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                                                                   EXHIBIT 10(H)

SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1              SERVICE AGREEMENT NO. 101.A (ASSIGNED)
OPEN ACCESS TRANSMISSION TARIFF

                                                                   Page 1 of 5

                         SERVICE AGREEMENT FOR LONG-TERM
                   FIRM POINT-TO-POINT TRANSMISSION SERVICE

1.0   This Service Agreement, dated as of December 12, 2002, is entered into, by
      and between Sierra Pacific Power Company and/or Nevada Power Company as
      appropriate ("Transmission Provider"), and Pinnacle West Energy
      Corporation, (Pinnacle West) ("Transmission Customer").

2.0   The Transmission Customer has been determined by the Transmission Provider
      to have a Completed Application for Firm Point-To-Point Transmission
      Service under the Tariff.

3.0   The Transmission Customer has provided to the Transmission Provider an
      Application deposit in accordance with the provisions of Section 17.3 of
      the Tariff.

4.0   Service under this agreement shall commence on the later of (l) the
      requested service commencement date, or (2) the date on which construction
      of any Direct Assignment Facilities and/or Network Upgrades are completed,
      or (3) such other date as it is permitted to become effective by the
      Commission. Service under this agreement shall terminate on the actual
      termination date or such date as mutually agreed upon by the parties.

5.0   The Transmission Customer's renewal rights under this agreement shall be
      as specified in Section 2.2 of the Transmission Provider's Tariff as it
      may be amended from time to time in accordance with FERC policy. In
      addition, in order to assist the Transmission Provider in planning its
      system appropriately, the Transmission Customer will communicate with the
      Transmission Provider on a nonbinding basis regarding its assessment of
      whether it will renew this agreement as follows:

      5.1 In the event the Transmission Customer signs a power sales contract
      that: (1) utilizes the transmission capacity provided for under this
      agreement, and (2) extends beyond this agreement's initial term, the
      Transmission Customer shall so notify the Transmission Provider (without
      identifying the parties to the power sales contract) and shall provide the
      Transmission Provider with the Transmission Customer's assessment of the
      likely impact of such contract on its intent to renew this agreement.
<PAGE>
                                                                   EXHIBIT 10(H)

SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1              SERVICE AGREEMENT NO. 101.A (ASSIGNED)
OPEN ACCESS TRANSMISSION TARIFF


                                                                   Page 2 of 5

      5.2 The Transmission Customer will on an annual basis, starting five years
      prior to the end of the initial term of this agreement, provide the
      Transmission Provider with a nonbinding statement of its current
      assessment of whether it will renew this agreement. The Transmission
      Customer will, on Transmission Provider's request, answer any reasonable
      questions the Transmission Provider has about such assessment; provided
      that the Transmission Customer shall not be obligated to provide any
      confidential market data to the Transmission Provider.

      5.3 The Transmission Provider's transmission personnel shall treat as
      confidential and proprietary all information provided by Transmission
      Customer under this Section 5.0, and shall comply with FERC's affiliate
      regulations and other applicable provisions of Order No. 889, or any
      successor requirements, in its treatment of such information; provided
      that this Section 5.3 shall not prevent the Transmission Provider from
      providing information to FERC, the PUCN or any other agency of competent
      jurisdiction in accordance with applicable requirements of such agency or
      from compliance with any valid court order requiring the production of
      such information. The Transmission Provider shall give the Transmission
      Customer notice of any such agency request or court order so that the
      Transmission Customer may take any action deemed necessary by the
      Transmission Customer to protect the confidentiality of the requested
      information.

6.0   The Transmission Provider agrees to provide and the Transmission Customer
      agrees to take and pay for Firm Point-To-Point Transmission Service in
      accordance with the provisions of Part II of the Tariff and this Service
      Agreement.

7.0   Any notice or request made to or by either Party regarding this Service
      Agreement shall be made to the representative of the other Party as
      indicated below.
<PAGE>
                                                                   EXHIBIT 10(H)

SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1              SERVICE AGREEMENT NO. 101.A (ASSIGNED)
OPEN ACCESS TRANSMISSION TARIFF


                                                                   Page 3 of 5

8.0   If any event occurs that will materially affect the time for completion of
      new facilities or the ability to complete them, Transmission Provider
      shall promptly notify the Transmission Customer. A technical meeting
      between the Parties shall be held to evaluate the alternatives available.
      If the Transmission Provider and the Transmission Customer mutually agree
      that no other reasonable alternatives exist and the requested service
      cannot be provided out of existing capability under the conditions of Part
      II of the Tariff, the obligation to provide the requested Firm
      Point-To-Point Transmission Service shall terminate and any deposit made
      by the Transmission Customer shall be returned with interest pursuant to
      Commission regulations 35.19a(a)(2)(iii). However, the Transmission
      Customer shall be responsible for all prudently incurred costs by the
      Transmission Provider through the time construction was suspended.

      Transmission Provider:
            Director, Regional Transmission
            Nevada Power Company
            P.O. Box 230
            Las Vegas, NV 89151

      Transmission Customer:
            Pinnacle West Energy Corporation
            P.O. Box 53999, Mail Station 8985
            Phoenix, AZ 85072-3999

9.0   The Tariff is incorporated herein and made a part hereof.

IN WITNESS WHEREOF, the Parties have caused this Service Agreement to be
executed by their respective authorized officials.

      Transmission Provider:


By: __________________________      __________________      __________________
                Name                       Title                   Date

      Transmission Customer:


By:___________________________      __________________      __________________
                Name                       Title                   Date
<PAGE>
                                                                   EXHIBIT 10(H)

SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1              SERVICE AGREEMENT NO. 101.A (ASSIGNED)
OPEN ACCESS TRANSMISSION TARIFF

                                                                   Page 4 of 5

               Specifications For Long-Term Firm Point-To-Point
                              Transmission Service

1.0   Term of Transaction: 5 Year(s)

      Start Date: 07-31-03

      Termination Date: 07-30-08

2.0   Description of capacity and energy to be transmitted by Transmission
      Provider including the electric Control Area in which the transaction
      originates.

      375 MW from Harry Allen 500 kV Substation in Nevada Power Company's
      Control Area to Mead 230 kV Substation.

3.0             Point of Receipt                    Delivering Party

          HARRY ALLEN 500 KV SUBSTATION     PINNACLE WEST ENERGY CORPORATION

4.0             Point of Delivery                    Receiving Party

             MEAD 230 KV SUBSTATION                      MARKET

5.0   Maximum amount of capacity and energy to be transmitted (Reserved
      Capacity):  375 MW

6.0   Designation of party(ies) subject to reciprocal service obligation:
      None

7.0   Name(s) of any Intervening Systems providing transmission service:  None
<PAGE>
                                                                   EXHIBIT 10(H)

SIERRA PACIFIC RESOURCES OPERATING COMPANIES
FERC ELECTRIC TARIFF
FIRST REVISED VOLUME NO. 1              SERVICE AGREEMENT NO. 101.A (ASSIGNED)
OPEN ACCESS TRANSMISSION TARIFF

                                                                   Page 5 of 5

8.0   Service under this Agreement may be subject to some combination of the
      charges detailed below. (The appropriate charges for individual
      transactions will be determined in accordance with the terms and
      conditions of the Tariff.)

      8.1   Transmission Charge:  $1.21/kW-mo.

      8.2   System Impact and/or Facilities Study Charge(s):
            Pending finalization, $30,000 deposit in place.  Reliant - Arrow
            Canyon will be responsible for the final actual costs.

      8.3   Direct Assignment Facilities Charge:  None under this TSA.
            However, Direct Assignment Facilities will be required to provide
            the associated interconnection and are defined in the
            Interconnection & Operation Agreement.

      8.4   Ancillary Services Charges:  As negotiated in the future or as
            defined in Interconnection and Operation Agreement.

      8.5.  Power Factor Requirements: As defined in Interconnection and
            Operation Agreement.


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