ScottishPower and PacifiCorp announced that they have reached an overall settlement with the Utah Division of Public Utilities (DPU) and the Committee of Consumer Services (CCS) regarding the proposed merger of the companies. The DPU and the CCS will support and recommend approval of the merger with an agreed set of conditions, acknowledging that ScottishPower and PacifiCorp have satisfied the standard in Utah for Commission approval and that the merger is in the public interest.
Settlement followed the DPU's earlier conditional recommendation of the merger. The CCS had previously filed testimony recommending rejection of the merger.

The agreement included a merger related credit to customers of $12 million per year for four years beginning in the year 2000. The merger credit includes Utah's share of the $10 million cost savings which ScottishPower had previously committed to pass to customers.

ScottishPower and PacifiCorp will be able to offset the $12 million merger credit in years 3 and 4 to the extent that the cost reductions related to the merger are reflected in rates. This agreement does not preclude the company from filing a rate case.

Alan Richardson, CEO designate of PacifiCorp said, "This agreement is a major milestone in the merger approval process and represents the culmination of a significant effort by the DPU, the CCS and ourselves. It certainly puts us in a very encouraging position as we head into the hearings next week."

Ian Robinson, Chief Executive of ScottishPower said, "This agreement coupled with the settlement reached in Oregon earlier this week marks a major milestone in the merger process. We now have recommendations from commission staff in all of PacifiCorp's states and the hearings in all states will be completed by late August." He added, "We have also received the necessary UK and the major US Federal approvals, namely FERC and Hart Scott Rodino. We are therefore confident that the merger will complete within our anticipated timeframe."

Further Information:
Sue Clark,                  Director of Corporate Affairs     0141 636 4560
Colin McSeveny,             Group Media Manager           0141 636 4515