PPM Announces Acquisition of Atlantic Renewable

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January 4, 2005

PORTLAND, Ore. – PPM Energy, the U.S. competitive subsidiary of ScottishPower (NYSE: SPI), today announced the acquisition of Richmond, Virginia-based Atlantic Renewable Energy Corporation and its wind development portfolio as a wholly owned subsidiary of PPM, called PPM Atlantic Renewable.

"Atlantic Renewable has significant expertise in wind project development, permitting and political and regulatory affairs in the Northeast," said Peter van Alderwerelt, PPM senior vice president. "Those skills, combined with PPM's strengths in renewable marketing, project implementation and energy management, will help PPM expand its successful West Coast and Midwest wind business to Northeast energy markets."

"The staff at Atlantic Renewable is delighted to become part of PPM," said Theo de Wolff, former principal of Atlantic Renewable and now Managing Director of PPM Atlantic Renewable. "With a project pipeline of more than 500 MW in development in the Northeast with on-line dates between 2005 and 2010, we are eager to combine strengths to work toward the successful completion of projects."

The acquisition comes as the Northeast and Mid-Atlantic regions have passed some of the most robust state Renewable Portfolio Standards (RPSs) in the nation. In addition, aggressive air emissions regulations and other policies in these regions provide greater incentives for alternatives to coal and oil-fired generation.

About PPM Atlantic Renewable

PPM Atlantic Renewable has emerged as one of the leading developers of wind projects in the eastern US, initiating and developing more than 65 percent of all installed wind power capacity in the eastern United States. Currently, PPM Atlantic Renewable has more than 500 MW of wind power capacity under development in New York, Pennsylvania, West Virginia, and New Jersey.

Of the total 250 MW built to date on the East Coast, PPM Atlantic Renewable is responsible for initiating and developing six projects totaling 162 MW. Its success is founded on core competences in site selection, landowner relations, local politics and environmental issue management. PPM Atlantic Renewable's onshore pipeline of wind project opportunities is the most extensive in the region.

About PPM Energy

Portand, Oregon-based PPM Energy is part of the ScottishPower group of companies. With a portfolio of more than 830 MW of wind power currently in operation in seven states, PPM Energy has a goal of bringing 2,300 MW of new wind power to market by 2010. PPM Energy balances its supply portfolio with sales to wholesale customers, placing almost all of its output in long-term contracts.

Major customers include the cities of Seattle, Sacramento, Pasadena, Anaheim as well as investor-owned utilities such as Alliant Energy and Xcel Energy and the federal Bonneville Power Administration. PPM Energy also has about 800 megawatts of clean gas resources under its control to give customers a wide range of options for adding environmentally responsible energy to their portfolios. The U.S. Environmental Protection Agency, the U.S. Department of Energy, and the Center for Resource Solutions honored PPM recently for significantly advancing development of the green power market.

Art Sasse, Director, Communications & Brand, Iberdrola Renewables, 503-796-7740
Paul Copleman, Media Relations, Iberdrola Renewables, 207-641-2805