PPM Energy now has around 2,000 mw of wind energy in operation or under construction in the US, a portfolio of US and Canadian natural gas storage facilities, and a supply portfolio with sales to wholesale customers which places almost all of its output in long-term contracts.

Five new wind farms completed construction in fiscal year 2006, financed by a £445m investment. In May 2006 we completed our first wind portfolio financing structure; this financing structure will enable us to realise the value of the wind tax benefits.

Gas-related expenditure of £43m in fiscal year 2006 included expansion investment in the Waha gas storage development in West Texas, totalling 9.5 billion cubic feet (BCF), due to commence operations in 2007; and the 1.5 BCF expansion to our existing gas storage facility at Grama Ridge in New Mexico, which is now operational.

In total £497m was invested in capital projects during the year with £493m invested for growth.

PPM’s Key challenges for 2006/07 include expanding our profitable gas storage business to 125 BCF and growing the on-shore wind business to exceed our 2010 target of 3,500 mw. We have already approved plans to build 857 mw of new wind power during the 2006 and 2007 calendar years to add to our existing portfolio.