ScottishPower announces that on 28 September 2005, PacifiCorp, its US regulated energy business, was granted $26 million of additional annual revenue by the Oregon Public Utility Commission (OPUC).

PacifiCorp originally filed for a $102 million increase in November 2004 and, through settlement agreements, reduced its request to $52.5 million to resolve issues in the case and to reflect more current costs, including net power costs and revised load forecasts.  This order resolves the remaining issues in the case.

The difference in revenue requirement of $26 million is entirely attributed by the OPUC to $16 million of taxes related to the implementation of the recently enacted Oregon Senate Bill 408 (SB408) tax legislation.  ScottishPower is very disappointed with the outcome related to the SB408 tax adjustment and expects to explore its options to remedy this.

This order will result in a 3.2% average increase in rates for Oregon customers, with effect from 4 October 2005.  The order grants recovery of all capital costs requested.

For Further Information:

Jennifer Lawton         Head of Investor Relations                    0141 636 4527

Colin McSeveny         Group Media Relations Manager           0141 636 4515