ScottishPower today announced that its US competitive subsidiary, PPM Energy (PPM), plans to build a new 150 MW windfarm in Kansas, and has signed a 20-year contract for the output with a regional utility.

The Elk River wind project is expected to be immediately earnings enhancing once completed in 2005. PPM's 20-year power purchase agreement for all of the Elk River output is with The Empire District Electric Company based in Missouri. The capital invested in the project is expected to be about $190 million with returns anticipated to be consistent with our internal targets.

PPM, which already controls 830 MW of operating wind energy, announced development of 175 MW in two windfarms in October. These and the Elk River project will bring PPM's total wind portfolio to nearly 1,200 MW by the end of 2005, well on target toward its goal of at least 2,300 MW online by 2010. More than 90% of PPM's existing wind resource is now sold under long-term contracts.

PPM CEO Terry Hudgens said: "The Elk River Project provides for additional growth and geographic expansion of PPM's wind portfolio in Kansas, which has one of the most robust wind resources in the nation. We are optimistic about the overall prospects for further substantial windfarm development in the coming year."

Further information:
Colin McSeveny      Group Media Relations Manager              0141 636 4515
David Ross             Investor Relations Manager                      0141 566 4853
Bob Hess               US Vice President, Investor Relations    001 503 813 7234