(This article was supplied by PacifiCorp)

MidAmerican Energy Holdings Company announced May 24 that it is purchasing PacifiCorp from ScottishPower.

MidAmerican, a privately owned global provider of energy services, agreed to purchase all of the outstanding shares of PacifiCorp common stock for approximately $5.1 billion in cash plus approximately $4.3 billion in net debt and preferred stock, which will remain at PacifiCorp.

PacifiCorp will operate under its current name and continue to be headquartered in Portland. The company will continue operating as Pacific Power in Oregon, Wyoming, Washington and California, and as Utah Power in Utah and Idaho. Few, if any, employees will be impacted. The transaction is subject to approval from ScottishPower shareholders, as well as state and federal regulatory agencies. It is expected to close in 2006.

In follow-up visits with regulators, customer groups, employees, political leaders and media, Judi Johansen, PacifiCorp president and CEO said that she believes “the acquisition agreement is a good outcome for PacifiCorp. It will allow PacifiCorp to continue its focus on employees, customers, communities and the environment.”

MidAmerican is experienced in the U.S. regulated utility business and already operates a utility with a diversified fuel mix that includes coal, renewables and other resources. It shares many of the same priorities as PacifiCorp, including customer service, operational excellence, employee commitment, strong local presence in communities and strong environmental stewardship.

“The transaction with MidAmerican provides increased stability and certainty to our ability to invest over the long-term, which is critical if we are to maintain our position of low-cost, reliable service for our customers,” said Johansen. “We are in a capital-intensive period, one where we must spend up to $1 billion a year for the system improvements needed to meet increased customer demand. MidAmerican has assured us they are very supportive of our business plan.”

Greg Abel, president and chief operating officer of MidAmerican and designated as chairman of PacifiCorp upon completion of the transaction, has stressed that he is pleased to be working with PacifiCorp. “PacifiCorp is widely regarded as one of the best companies in the industry, with strong management and skilled employees. I look forward to supporting the company in the execution of its business plans,” Abel said.

MidAmerican has shown itself to be a long-term investor in capital-intensive energy businesses, and has a proven track record for holding businesses for the long term, investing in them and allowing them to operate relatively independently.

The transaction will create a company that:

• Provides energy to approximately 6.6 million electric and natural gas customers in the United States and the United Kingdom
• Serves 3 million customers in 10 contiguous states — Illinois, Iowa, Nebraska, South Dakota, Wyoming, Utah, Idaho, Washington, Oregon and northern California

PPM Energy Inc. is not part of the transaction and will remain a subsidiary of ScottishPower.

Filings with regulatory agencies will begin this summer.