ScottishPower and PacifiCorp announced that they have received approval for their merger from the Oregon Public Utility Commission (OPUC). The approval order incorporates all five stipulations entered into by the companies and the OPUC staff and other parties.
The Order is the second of six state regulatory approvals required for the merger to be completed. California approved the merger in June and Orders are pending from Washington, Utah, Wyoming and Idaho.

The approval is a significant milestone in the merger process, which the companies anticipate will be completed by the year-end. Oregon represents 34 percent of PacifiCorp's total customer base.

ScottishPower Chief Executive Ian Robinson said: "We welcome the speedy approval from the Oregon regulators and we are confident that the merger will soon be completed, creating one of the top 10 investor-owned utilities in the world."

Alan Richardson, Chief Executive designate of PacifiCorp added: "We have forged good relationships with all parties during the merger process which makes this approval even more gratifying. We are looking forward to delivering real benefits to customers and communities in Oregon when the merger is approved in the four remaining states."

In an announcement made on Tuesday (October 5th 1999) during a public deliberation meeting on the merger transaction, the Wyoming Public Service Commission announced that it has decided to approve the merger of the two companies, subject to the preparation and issuance of a final Order.

Further Information:
Sue Clark,                     Director of Corporate Affairs          0141-636-4561
Colin McSeveny,         Group Media Relations Manager       0141-636-4515
Iain Paterson,                Investor Relations Manager             0141-636-4527

Editor's Notes:
 
1 As part of the merger approval, the OPUC accepted the conditions and all five stipulations agreed to earlier by the companies, the Commission staff and the Citizens' Utility Board and other parties. These conditions include a comprehensive set of customer service standards and funding for conservation and low-income assistance programs. In their original filing the companies also committed to develop an additional 50 MW of renewable energy within five years. The Commission, in today's Order, noted that this commitment would need to be reconciled with Oregon's recently passed electric restructuring legislation SB 1149.

The merged company will also implement a credit to Oregon customers of $12 million per year for three years and $15 million in the fourth year, beginning on the first anniversary of merger completion.

Many of these improvements were part of the companies' original merger filing Feb. 26, 1999; further enhancements were made after discussions with OPUC staff and other interested parties.

2 The merger has already been approved by shareholders of both companies and by the U.S. Federal Energy Regulatory Commission. It has been cleared in the U.S. under the Hart-Scott-Rodino Antitrust Improvements Act, and has received regulatory approval in the United Kingdom and Australia.