Two power contracts totaling 125 MW signed for PPM Energy's Shiloh Wind Project

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July 7, 2005

PORTLAND, Ore. – PPM Energy, Inc. (PPM), ScottishPower's (LSE: SPW; NYSE: SPI) competitive US energy business, has entered into agreements for sales totaling 125 MW to two California customers from the proposed 150 MW Shiloh wind farm in Solano County, Calif. Shiloh is projected to be commercially operational in 2005, which will be confirmed upon completion of pending transmission arrangements.

“In this world of $60-a-barrel foreign oil, we're encouraged to see both far-sighted investor owned utilities like Pacific Gas & Electric Company and public entities like Modesto Irrigation District (MID) sign significant, long-term agreements for clean, economical wind energy,” said Terry Hudgens, PPM president and CEO. “We welcome our first renewable energy sale to PG&E, as well as the repeat business from MID. Both are key players in the important California marketplace.”

PG&E has signed a 15-year agreement to purchase up to 75 MW of clean, renewable wind energy resources to help meet its customers' future electricity needs. With this agreement, PPM has helped PG&E meet its annual goal of increasing its renewable purchases by a minimum of 1% of retail load.

“These new wind energy resources will supply enough power to serve more than 50,000 customers and add to a generating portfolio that has one of the lowest rates of air emissions in the country,” said Fong Wan, vice president of power contracts and electric resources development. “The utility currently supplies 31% of its customer load from renewable resources: 18% from its large hydroelectric facilities and 13% from wind, small hydro and other renewable resources that qualify under the state's renewables program."

MID has signed a 10-year agreement for up to 50 MW of Shiloh's output. Shiloh wind energy is well suited to help MID meet its goal of supplying 20 percent of its retail load from renewable sources by 2017. Located about 40 miles from MID's system, Shiloh complements MID's local hydroelectric and natural gas-fired generation.

“With this agreement and a 25 MW purchase from PPM in 2004, renewable power will serve about eight to nine percent of our load,” says Roger VanHoy, MID Assistant General Manager for Electric Resources. “As an added benefit, clean wind power can replace or offset some of the energy from our local natural gas-fired plants.”

PPM Energy announced the new 150 MW Shiloh wind farm last month. Shiloh is strategically located between major customer centers in San Francisco and Sacramento, and near the operating 162 MW High Winds Energy Center, from which PPM buys all the output for supply to wholesale customers. PPM in May acquired the fully permitted Shiloh Wind Project in Solano County from enXco, an affiliate of EDF Energies Nouvelles of France.

PPM currently controls approximately 830 MW of wind power in seven states, and has announced a total of 574 MW additional wind projects to be built in 2005. This will put a total of approximately 1,400 MW of wind energy under PPM's control, well on target toward the company's goal of bringing online 2,300 MW of wind power by 2010.