ScottishPower today (Thursday) announces that its competitive US energy business, PacifiCorp Power Marketing, Inc. (PPM), will expand its 1,000 MW portfolio of wind and gas generation with another 50 MW of new wind power in the Midwestern US.

PPM will construct the $55 million, 50 MW Moraine Wind Power Project in southwest Minnesota, which is expected to go into commercial operation in fall 2003. As part of its strategy, PPM will supply wind-generated electricity to regional utility Northern States Power (NSP) through a long-term power purchase agreement approved by the Minnesota Public Utilities Commission in July 2002.

This is the first time PPM will own and operate a windfarm. PPM has ordered thirty-four 1.5 MW GE wind turbines for the project. The Moraine Wind Power Project offers a strong wind resource, manageable size, expandability and a long-term contract with NSP. The Midwest has been targeted by PPM due to favorable public policy and weather conditions for new wind energy development in the region.

PPM also recently entered into an agreement to purchase from FPL Energy the entire output of the proposed High Winds windfarm in northern California. The windfarm is expected to be 150 MW when completed. PPM is actively marketing the energy from High Winds to wholesale customers in California, a state that this fall adopted an aggressive renewable portfolio standard. Under this standard, utilities must supply 20 percent of their energy portfolio from renewable sources by 2017. High Winds is expected to begin operation in summer 2003.

Both projects are expected to be earnings enhancing in their first full year of operations.

"These two wind projects are quality assets in excellent locations," said PPM CEO Terry Hudgens. "They are consistent with our strategy of securing significant new wind power in the next five to seven years to meet the needs of our growing wholesale customer base in the West and now in the Midwest." PPM expects to secure a total of at least 300 MW of new wind generation this year, including the 200 MW from the Moraine and High Winds projects, through its own development and long-term purchases.

Further Information:

Simon McMillan                                        0141 566 4875 or 07753 622257