GLASGOW, U.K., Oct. 5, 2004 (PRIMEZONE) -- ScottishPower today announced that its U.S. competitive subsidiary, PPM Energy (PPM), is planning to build two new windfarms generating a combined 175 MW following approval of the Production Tax Credit in Congress.
The fully permitted projects, the 75 MW Klondike II wind project in Oregon and the 100 MW Trimont wind project in Minnesota, are expected to be immediately earnings enhancing once completed in 2005. PPM also announced it has signed a 15-year power purchase agreement with Great River Energy, an electric cooperative, for all the Trimont output, and the output from Klondike II is also expected to be sold under long-term agreement currently under negotiation. The capital invested in these two projects is expected to be approximately $200 million and the returns are expected to be consistent with our internal targets.
PPM already controls 830 MW of wind energy and has another 200 MW at late-stage development with further announcements expected shortly. Development of these additional projects will bring PPM's total wind portfolio to more than 1,200 MW by the end of 2005, well on target toward its goal of at least 2,000 MW online by 2010. More than 80% of PPM's existing wind resource is sold under long-term contracts.
"We welcome the approval of the Production Tax Credit," said Terry Hudgens, Chief Executive Officer of PPM. "This legislative action will further boost PPM's strong development, construction and energy supply options to meet customer demand for renewable energy throughout the country. We are optimistic about the prospects for further substantial wind farm development in the coming year."
Note to editors: The Working Families Tax Relief Act of 2004 has extended the tax credits from certain renewable sources, including wind, to facilities placed in service after 2003 and before 2006. The tax credit now stands at 1.8 cents per kWh.
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