PPM Energy Sells the Entire Pebble Springs Wind Farm Output

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February 13, 2008

PORTLAND, Ore. - Iberdrola Renewables' US energy business, PPM Energy, today announced it has sold all the output of its 99-megawatt (MW) Pebble Springs Wind Power Project before breaking ground. The Pebble Springs project, located in Gilliam County, Oregon, near the town of Arlington, is expected to go into construction in the spring of 2008. With this project, PPM's Pacific Northwest wind portfolio will grow to more than 1,000 megawatts serving customers in Oregon, Washington and California.

"We are delighted to start work on another project to provide clean, renewable energy to our repeat customers," said Terry Hudgens, CEO of PPM Energy. "With this transaction, PPM will now provide approximately 230 MW to Southern California Public Power Authority (SCPPA) members from wind farms in California, Wyoming and now Oregon, bringing more jobs, lease payments and tax revenues to Gilliam County."

The Los Angeles City Council in December approved a long-term power purchase agreement, developed between SCPPA, of which the Los Angeles Department of Water and Power (LADWP) is the largest member, and Pebble Springs Wind, LLC, a wholly owned subsidiary of PPM Energy. SCPPA member agencies, including LADWP and the cities of Burbank and Glendale, will receive the entire energy output of the new wind farm. LADWP will receive 68.7 MW, and the cities of Burbank and Glendale will be entitled to 10 MW and 20 MW, respectively.

"This agreement marks another significant step in achieving Los Angeles Mayor Antonio Villaraigosa's goal of providing 20 percent of our power through clean, renewable energy by 2010 and 35 percent by 2020," said LADWP Board President Nick Patsaouras. "Wind power and other renewable energy generation benefit the environment and reduce greenhouse gas emissions associated with global warming by replacing traditional fossil fuel power such as coal."

The project is expected to produce more than 275,000 megawatt-hours annually – of which LADWP will receive 193,000 megawatt-hours – enough wind energy to serve more than 45,800 homes.

"I am very pleased that the City is pushing forward with capturing a significant amount of clean, renewable wind power," Mayor Villaraigosa said. "This action benefits the environment and reduces greenhouse gas emissions associated with global warming by replacing traditional fossil fuel power such as dirty coal."

"The City of Glendale is looking forward to adding Pebble Springs to our growing portfolio of renewable energy resources for our customers," said Glendale's Mayor Ara Najarian. "Glendale is committed to exploring and developing renewable technologies and reducing greenhouse gas emissions through projects like Pebble Springs."

"Pebble Springs integrates into Burbank Water and Power's resource plan and provides reliable, affordable and environmentally responsible power to the city," stated Ronald E. Davis, general manager for Burbank. "It also fits into the City of Burbank's sustainability efforts and will help to achieve the Council's policy of drawing 33 percent of the city's power from renewable sources by 2020 – this project is good for the community and the environment."

The project will interconnect to the Bonneville Power Administration system through a connection to the Jones Canyon substation adjacent to the existing Leaning Juniper Wind Power Project. SCPPA will move the energy via the existing Pacific HVDC Transmission Line that feeds directly into LADWP's Sylmar Converter Station.

PPM Energy, headquartered in Portland, Oregon, is one of North America's leading wind power providers with more than 2,000 MW of wind power in operation. PPM is part of Iberdrola Renewables, one of the leading wind energy providers in the world, with more than 7,000 MW of wind power online worldwide and with a pipeline of more than 41,000 MW of wind power.