It looks like it is a bug in upower version 0.99.  I noticed that upower
-d did not show can-suspend or can-hibernate with that version
installed, however it showed up with 0.9.23.  I downgraded from 0.99 to
0.9.23 and rebooted (with pm-utils installed), and upon reboot the sleep
option was available.  So, as a workaround, just try downgrading upower
from 0.99 to 0.9.23 (then reboot) until the issue is resolved.

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https://bugs.launchpad.net/bugs/1296133

Title:
  Suspend and hibernate missing from KMenu and Power Management in
  System settings

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