PPM Enters Midwest Wind Business
November 21, 2002
GLASGOW - ScottishPower (LSE: SPW, NYSE: SPI) announced today that its competitive US energy business, PacifiCorp Power Marketing, Inc. (PPM), will expand its 1,000 MW portfolio of wind and gas generation with another 50 MW of new wind power in the Midwestern US.
PPM will construct the $55 million, 50 MW Moraine Wind Power Project in southwest Minnesota, which is expected to go into commercial operation in fall 2003. As part of its strategy, PPM will supply wind-generated electricity to regional utility Northern States Power (NSP) through a long-term power purchase agreement approved by the Minnesota Public Utilities Commission in July 2002.
This is the first time PPM will own and operate a windfarm. PPM has ordered thirty-four 1.5 MW GE wind turbines for the project. The Moraine Wind Power Project offers a strong wind resource, manageable size, expandability and a long-term contract with NSP. The Midwest has been targeted by PPM due to favorable public policy and weather conditions for new wind energy development in the region.
PPM also recently entered into an agreement to purchase from FPL Energy the entire output of the proposed High Winds windfarm in northern California. The windfarm is expected to be 150 MW when completed. PPM is actively marketing the energy from High Winds to wholesale customers in California, a state that this fall adopted an aggressive renewable portfolio standard. Under this standard, utilities must supply 20 percent of their energy portfolio from renewable sources by 2017. High Winds is expected to begin operation in summer 2003.
Both projects are expected to be earnings enhancing in their first full year of operations.
"These two wind projects are quality assets in excellent locations," said PPM CEO Terry Hudgens. "They are consistent with our strategy of securing significant new wind power in the next five to seven years to meet the needs of our growing wholesale customer base in the West and now in the Midwest." PPM expects to secure a total of at least 300 MW of new wind generation this year, including the 200 MW from the Moraine and High Winds projects, through its own development and long-term purchases.
The ScottishPower group (NYSE: SPI), one of the world's largest publicly traded energy companies, supplies energy to millions of business and domestic customers across the UK and in the Western United States, through its 1999 merger with PacifiCorp. The group is comprised of two regulated businesses-PacifiCorp and Infrastructure-and two competitive businesses-PacifiCorp Power Marketing Inc. and the UK Division.
ScottishPower's ADS, equivalent to four ordinary shares, trades on the New York Stock Exchange under the symbol SPI. ScottishPower's ordinary shares trade on the London Stock Exchange. Prices may be accessed on Bloomberg under the symbols SPI and SPW LN, on the Reuter Equities 2000 Service under SPI.N and SPW.L and on Quotron under SPWU.EU.
Forward-looking information is subject to risk and uncertainty. Certain statements made in this press release may contain "forward-looking statements" as defined by U.S. federal law. These include statements concerning our expectations and other statements that are not historical facts. Although the Company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. Additional information abut the issues that could lead to material changes in performance is contained under the caption "Quantitative and Qualitative Disclosure about Market Risk" in the Company's Annual Report and Accounts / Form 20-F for 2001/02 files with the Securities and Exchange Commission.
Andrew Jamieson, ScottishPower +44-141-636-4527
Bob Hess, ScottishPower +1-503-813-7234
Brian Rafferty, Taylor Rafferty +1-212-889-4350
Art Sasse, Director, Communications & Brand, Iberdrola Renewables, 503-796-7740
Paul Copleman, Media Relations, Iberdrola Renewables, 207-641-2805