ScottishPower's PPM to Build First Northeastern US Windfarm

ScottishPower's US competitive subsidiary, PPM Energy, and its joint venture partner, Zilkha Renewable Energy of Houston, will build and own the Maple Ridge Windfarm in upstate New York. Maple Ridge is expected to be 198 MW, nearly quadrupling the total installed wind capacity in New York. The Goldman Sachs Group recently announced plans to acquire Zilkha Renewable Energy, subject to regulatory approvals.

PPM's share of the capital invested in the project is expected to be approximately $160 million, with completion of the 120-turbine windfarm expected in December 2005. It is expected that the project will be immediately earnings enhancing with returns anticipated to be consistent with internal targets.

The state of New York recently enacted legislation requiring 25 percent of energy to come from renewable sources by 2013, the highest such renewable portfolio standard in the US. Additionally, Maple Ridge is strategically located so that it can sell power into the New York power pool, and has sold renewable energy certificates (RECs) under a 10-year contract to the state of New York.

PPM controls about 830 MW of operating wind energy, and previously announced three other projects totalling 325 MW earlier in the year. Along with the Maple Ridge Windfarm, these projects will bring PPM's total wind portfolio to approximately 1,255 MW by the end of 2005, well on target toward its goal of at least 2,300 MW online by 2010.

PPM CEO Terry Hudgens said: "The Maple Ridge Windfarm begins the promised expansion of our US wind business in the eastern United States and will help us continue our goal of becoming the leading US renewable energy company."

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Posted 06/04/05

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