Avista buys more energy from PPM

Click Here for a PDF version of this press release.

April 7, 2004

PORTLAND, Ore. - PPM Energy, Inc. (PPM), ScottishPower's (NYSE: SPI) competitive US energy business, today announced that it will begin delivery of additional energy to Avista Utilities, an operating division of Avista Corp. (NYSE: AVA). Avista and PPM Energy have agreed on terms of a 10-year contract to provide up to 35 megawatts of energy and renewable energy credits beginning April 7, 2004.

"PPM is pleased to be doing additional business with Avista," said Peter van Alderwerelt, senior vice president for business development and origination at PPM. "We work hard to make our customers comfortable with dealing with wind's intermittency and now Avista is stepping up to a larger amount."

PPM will provide the undifferentiated power from the Stateline Wind Energy Center located near Walla Walla, Wash. The Stateline wind farm has a capacity of 300 MW and is the largest single wind generating facility in the world. In addition to the undifferentiated power, an equivalent amount of renewable energy credits will come from Stateline and other certified renewable energy sources.

The company expects to receive approximately 10 average megawatts of energy over the course of a year, which is enough power for approximately 6,500 homes.

"The power will be delivered at a price that is competitive with other sources of wholesale market energy," said Steve Silkworth, Avista's project manager. "This contract represents a significant step in the integration of wind power into our resource mix. It will help us meet our customers' current and future energy needs through the use of additional renewable resources." Other renewable resources owned and operated by Avista include hydroelectric generation and the Kettle Falls wood-waste fired generating project.

"We are particularly pleased to see Avista purchasing new renewable energy to serve its customers, and to gain experience with wind in their system. We hope their experience will lead to additional purchases in the future," said Rachel Shimshak, Director of the Renewable Northwest Project (RNP). RNP is a regional non-profit that promotes solar, wind and geothermal in the four states of the Northwest.

About PPM Energy
PPM Energy is part of the ScottishPower ((NYSE: SPI) group of companies. With a portfolio of more than 830 MW of wind power currently in operation in seven states, PPM has a goal of bringing 2,000 MW of new wind power to market by 2010. PPM 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 also has about 800 MW of clean gas resources under its control to give customers a wide range of options for adding environmentally responsible energy to their portfolios. The American Wind Energy Association honored PPM with its "Market Maker of the Year" award for aggressively finding markets for wind power.

About Avista Corp
Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is a company operating division that provides electric and natural gas service to customers in four western states. Avista's non-regulated subsidiaries include Avista Advantage and Avista Energy. Avista Corp.'s stock is traded under the ticker symbol "AVA" and its Internet address is www.avistacorp.com 

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