PacifiCorp, a ScottishPower subsidiary, filed a rate case on 1 November 2000 with the Oregon Public Utility Commission as required under Senate Bill 1149, the state's electric industry restructuring law.

In the filing, PacifiCorp is seeking an overall net price increase of $85 million above prices in effect today. If approved, the net increase would be fully implemented by 1 October 2001.

A major part of the requested increase in rates is for higher forecast power costs. Over the past several months, utilities throughout the western region of the US have experienced high energy prices together with extreme price volatility, and that trend is expected to continue through at least next year due to market conditions. The rate case will also consider, amongst other things, capital investment, inflation and cost of capital.

PacifiCorp also made separate filings on 1 November 2000 in Idaho, Oregon, Utah and Wyoming for deferred accounting treatment of forecast excess wholesale electricity costs. By filing for deferred accounting, PacifiCorp can begin recording cost increases associated with high-priced power purchases in this unusual market environment and then seek recovery in rate cases.

In its filings, which are based on the current market outlook, PacifiCorp forecasts a difference between power costs reflected in authorized rates and what the company now projects over the next 12 months of $165m. This approximates to 9% of annual regulated revenues, a figure lower than that of other utilities in the region due to PacifiCorp's extensive generation portfolio which allows it to substantially manage its power cost risks. PacifiCorp expects that excess costs, identified in deferred accounting, will be recovered by future rate increases

For ScottishPower's reported group results any excess power costs will continue to be expensed as incurred with any subsequent recovery recognised as additional revenue as it arises. ScottishPower does not expect any material impact compared to current management expectations of its forecast performance for the year ended 31 March 2001.

Further Information:
Dominic Fry, Director of Corporate Affairs 0141 248 8200
Colin McSeveny, Group Media Relations Manager 0141 248 8200

Forward-Looking Information
Forward-looking information is subject to risk and uncertainty. Portions of this release may constitute "forward looking statements" as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no such assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Litigation Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in PacifiCorp's annual report on Form 10-K and ScottishPower's Form 20F filed with the Securities and Exchange Commission.