ScottishPower announces that on 18 July 2002 the Oregon Public Utility Commission (OPUC) granted its subsidiary, PacifiCorp, an order to recover approximately $137 million including on-going carrying charges for the recovery of its excess net power costs in Oregon, related to the western power crisis in 2000 and 2001.

PacifiCorp has deferred $167 million including carrying charges, so this represents a recovery rate of such deferrals of approximately 82%. With this recovery order, PacifiCorp has been awarded in excess of $300 million in recent rate cases, including recovery orders of $147 million in Utah, $25 million in Idaho and a further $15.4 million in net recoveries in Oregon.

PacifiCorp is currently recovering these costs in Oregon through a 3% surcharge on customer bills. A request will be made in early August to the OPUC to raise the recovery level to the Oregon state maximum of 6%, which would allow recovery of the costs over a three to four year period.

PacifiCorp Chief Executive Officer Judi Johansen said: "We believe the order provides a strong level of recovery of allowable costs incurred in Oregon over the period."

Still pending is a $31 million Wyoming general rate case filed in May. In conjunction with this filing, PacifiCorp has also requested recovery of $91 million of excess power costs in Wyoming.

Under UK GAAP, all of PacifiCorp's net excess power costs are charged to the profit and loss account when incurred. The regulatory recovery of net excess power costs previously charged to the profit and loss account will be recognised as income under UK GAAP when billed to customers.

Further Information:

Colin McSeveny, Group Media Relations Manager 0141 636 4515

Andrew Jamieson, Head of Investor Relations 0141 636 4527