For the Fiscal Year Ended March 31, 2005

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

FORM U5S

 

ANNUAL REPORT

 

For the Fiscal Year Ended March 31, 2005

 

Filed pursuant to the Public Utility Holding Company Act of 1935

 

by

 

Scottish Power plc

 

1 Atlantic Quay

Glasgow G2 8SP

Scotland UK

 

Scottish Power plc

FORM U5S

March 31,2005

 

TABLE OF CONTENTS

 

ITEM
         PAGE
NUMBER
1.    System Companies and Investments Therein as of March 31, 2005    [3-20]
2.    Acquisitions or Sales of Utility Assets    [21]
3.    Issue, Sale, Pledge, Guarantee or Assumptions of System Securities    [21]
4.    Acquisition, Redemption or Retirement of System Securities    [21]
5.    Investments in Securities of Nonsystem Companies    [21]
6.    Officers and Directors    [22-35]
7.    Contributions and Public Relations    [35]
8.    Service, Sales and Construction Contracts    [36]
9.    Wholesale Generators and Foreign Utility Companies    [36-41]
10.    Financial Statements and Exhibits    [42]

 

2

ITEMS

 

ITEM 1. SYSTEM COMPANIES AND INVESTMENTS THEREIN AS OF MARCH 31, 2005.

 

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares

Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

Scottish Power plc              HC               

Scotpower Limited *

    Ordinary £1 Shares         FRB    2    #    #

Scottish Power Finance (Jersey) Limited

    10 Founder Shares
(no par value)		         FE    10    #    #

SP Finance

    Ordinary £0.01
Shares		         FE    10,025    #    #

SP Finance 2 Limited

    Ordinary £1 Shares         FE    10,750    21    1,417,519

PacifiCorp UK Limited

    A-F Nonvoting
Shares
Voting Share		         FE    1,250,000
1		    260,051
#		    2,370,336
#

ScottishPower Overseas Holdings Limited

    Ordinary £1 Shares         FE    100    #    13,963

PacifiCorp Energy Canada Ltd.

    Class A Voting
Shares		         Gas Storage    17,000    68,327    68,327

SP Finance 4 Limited

    Ordinary £1 Shares         FE    10,000    19    19

SP Finance 5 Limited

    Ordinary £1 Shares         FE    10,000    19    19

ScottishPower Finance V Limited

    Ordinary £1 Shares         FE    10,000    19    19

Scottish Power UK Holdings Limited

    Ordinary Shares £0.5         FUCO    1,183,983,102    1,118,865    1,125,954

 

3

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares

Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

Coldham Windfarm Limited (FN 1)

    Ordinary A Shares £1    80    FRB    80    #    #

ScottishPower (DCL) Limited (FN 2)

    Ordinary Shares £1         FRB    50,870,530    96,146    96,146

Damhead Creek Finance Limited (FN 3)

    Ordinary Shares of $0.10         FE    200    #    #

ScottishPower (DCOL) Limited (FN 4)

    Ordinary Shares of £1         FRB    1    #    #

ScottishPower Energy Management (Agency) Limited

    Ordinary £1 Shares         FRB    4,000,001    7,560    7,560

ScottishPower Energy Management Limited

    Ordinary £1 Shares         FRB    50,000,000    94,500    94,500

Holford Gas Storage Ltd

    Ordinary £1 Shares         Gas
Storage		    1    #    #

Scottish Power Intermediate Ltd (FN 5) *

    Ordinary £1 Shares         FRB    2    #    #

Scottish Power UK plc (SPUK)

    Ordinary Shares £0.5         FUCO    1,183,983,102    1,118,865    1,125,954

Aspen 1 Limited *

    Ordinary £1 Shares         FRB    1    #    #

Caledonian Gas Limited *

    Ordinary £1 Shares         FRB    250,000    473    473

ScottishPower Group Money Purchase Pension Scheme Limited *

    Ordinary £1 Shares         FRB    100    #    #

ScottishPower Inc. *

    Common Stock         FRB    100    #    #

Manweb Limited *

    Ordinary £1 Shares         FRB    1    #    #

 

4

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares
Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

RoboScot (38) Limited

    B Ordinary £1 Shares    50    FRB    7,999,999    15,120    10,206
     C Ordinary £1 Shares         FRB    1    #    #
     Preference Shares £1         FRB    1,270,467    2,401,183    #

SaBRe Water Limited *

    Ordinary £1 Shares         FRB    2    #    #

Scottish Power Trustees Limited *

    Ordinary £1 Shares         FRB    2    #    #

Scottish Utility Services Limited *

   

Ordinary £1 Shares

 

10% red pref shares £1

 

10% convertible pred shrs £1

         FRB

 

FRB

 

FRB

    2

 

151,153

 

34,960

    #

 

285

 

66

    #

 

#

 

#

Camjar plc *

    Ordinary £1 Shares         FRB    284,060    537    9,680

Spotlight Trading Limited *

    Ordinary £1 Shares         FRB    2    #    #

Telephone Information Services plc *

    Ordinary £1 Shares         FRB    350,000    662    #

ScottishPower Energy Retail Limited

    Ordinary £1 Shares         FRB    55,407,000    104,719    104,719

Gemserv Ltd

    Ordinary £1 Shares    13.38    FE    30,803    58    58

Manweb Energy Consultants Limited

    Ordinary £1 Shares         FRB    75,000    142    142

 

5

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares
Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

N.E.S.T.MAKERS Limited

    Ordinary B Shares £1    50    FRB    22,500    43    43

ScottishPower Generation Limited

    Ordinary £1 Shares         FRB    130,700,000    247,023    247,023

Beaufort Energy Limited

    Ordinary £1 Shares         FRB    2    #    #

CRE Energy Limited

    Ordinary £1 Shares         FRB    2    #    #

Wind Resources Limited

    B Ordinary £1 Shares    45    FRB    1,738,419    3,286    3,286

Carland Cross Limited

    Ordinary £1 Shares         FRB
T		    1,433,155    2,708    2,708

Coal Clough Limited

    Ordinary £1 Shares         FRB    2,420,002    4,574    4,574

CeltPower Limited

    B Ordinary £1 Shares    50    FRB    500    2    55

Emerald Power Generation Limited

    Ordinary £1 Shares         FRB    1    #    26

Manweb Generation Holdings Limited

    Ordinary £1 Shares         FRB    2,100,000    3,969    3,969

Manweb Generation (Winnington) Limited *

    Ordinary £1 Shares         FRB    1    #    #

Winnington Combined Heat and Power Ltd * (in liquidation)

    Ordinary £1 Shares    33.33    FRB    1    #    #

Winnington Combined Heat and Power Developments Limited * (in liquidation)

    Ordinary £1 Shares    33.33    FRB    409,805    #    #

 

6

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares
Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

Winnington Combined Heat and Power Operations Limited * (in liquidation)

    Ordinary £1 Shares    33.33    FRB    257,207    #    #

Scotash Limited

    B Ordinary £1 Shares    50    FRB    500    2    5,483

ScottishPower (SOCL) Limited (FN 6)

    A & B Ordinary £1 Shares         FRB    1    #    #

SMW Limited

    Ordinary £1 Shares         FRB    2    #    #

ScottishPower (SCPL) Limited (FN 7)

    A Ordinary £1 Shares         FRB    1,900,001    3,591    3,591
     B Ordinary £1 Shares         FRB    1,900,001    #    3,591

ScottishPower Share Scheme Trustees Limited

    Ordinary £1 Shares         FRB    2    #    #

ScottishPower Sharesave Trustees Limited

    Ordinary £1 Shares         FRB    2    #    #

Selectusonline Limited

    A Ordinary £1 Shares    33    FRB    33    #    #

SP Dataserve Limited

    Ordinary £1 Shares         FRB    17,608,000    33,279    33,279

SP Distribution Limited

    Ordinary £1 Shares         FRB    109,600,000    207,144    207,144

Scottish Electricity Settlements Limited

    Ordinary £1 Shares    50    FRB    1    #    #

 

7

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares
Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

SP Gas Limited

    Ordinary £1 Shares         FRB    2    #    #

SP Power Systems Limited

    Ordinary £1 Shares         FRB
.		    11,247,000    21,257    21,257

Core Utility Solutions Limited

    A Ordinary £1 Shares    50    FRB    1,000,000    1,890    1,890

SP Transmission Limited

    Ordinary £1 Shares         FRB    9,000,000    17,010    17,010

GBSO Limited *

    Ordinary £1 Shares         FRB    1    #    #

Teledata (Holdings) Limited *

    Ordinary £1 Shares         FRB    30,000    57    20,544

Teledata (Outsourcing) Limited *

    Ordinary £1 Shares         FRB    100    #    #

The CallCentre Service Limited *

   

Ordinary £.50 Shares

 

         FRB

 

    4,464,036

 

    4,218

 

    913

 

     Red pref shares £1         FRB    380,987    720    #

Teledata Scotland Limited *

    Ordinary £1 Shares         FRB    2    #    #

The Information Service Limited *

    Ordinary £1 Shares         FRB    4,073,100    7,698    2,912

Clubcall Telephone Services Limited *

    Ordinary £1 Shares         FRB    2,067,702    3,909    3,589

Clubline Services Limited *

    Ordinary £1 Shares         FRB    2    #    #

Telephone International Media Holdings Limited *

    Ordinary £1 Shares         FRB    106,250    200    2,965

 

8

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares
Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

Copperteam Limited *

    Ordinary £1 Shares         FRB    2    #    #

Telephone International Media Limited *

    Ordinary £1 Shares         FRB    650,000    1,229    #

TIM Limited *

    Ordinary £1 Shares         FRB    2    #    #

ScottishPower Investments Limited

    Ordinary £1 Shares         FRB    100,000,000    189,000    189,000

Caledonian Communications Limited *

    Ordinary £1 Shares         FRB    2    #    #

Dornoch International Insurance Limited (FN 8)

    Ordinary £1 Shares         FRB    3,000,000    5,760    5,760

Genscot Limited

    Ordinary £1 Shares         FRB    100,000    189    189

Manweb Holdings Limited *

    Ordinary £1 Shares         FRB    12,500,000    23,625    23,625

Manweb Contracting Services Limited *

    Ordinary £1 Shares         FRB    1,000,000    1,890    1,890

Manweb Gas Limited *

    Ordinary £1 Shares         FRB    150,000    284    284

Manweb Pensions Trustee Limited *

    Ordinary £1 Shares         FRB    2    #    #

Mawlaw 526 Limited *

    Ordinary £1 Shares         FRB    1    #    #

SSEB Limited *

    Ordinary £1 Shares         FRB    2    #    #

Scotsgrid Limited *

    Ordinary £1 Shares         FRB    2    #    #

 

9

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares

Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

ScottishPower Finance Limited *

    Ordinary £1 Shares         FRB    2    #    #

Scotspower Limited *

    Ordinary £1 Shares         FRB    2    #    #

ScottishPower Insurance Limited

    Ordinary £1 Shares         FRB    9,750,000    18,428    27,405

ScottishPower Leasing Limited

    Ordinary £1 Shares         FRB    2    #    #

ScottishPower Securities Limited *

    Ordinary £1 Shares         FRB    2    #    #

ScottishPower Telecommunications

Limited *

    Ordinary £1 Shares         FRB    15,000,000    28,350    28,350

Demon Internet Limited *

    Ordinary £0.10 Shares         FRB    1,533,330    289    127,764

Cityscape Global Media Limited *

    Ordinary £1 Shares         FRB    2    #    #

Cityscape Internet Services Limited *

    Ordinary £1 Shares         FRB    1,000    2    #

Cityscape Limited *

    Ordinary £1 Shares         FRB    2    #    #

Demon Limited *

    Ordinary £1 Shares         FRB    2    #    #

Dispatch Publishing Limited *

    Ordinary £1 Shares         FRB    100    #    166

Locomotive Software Group Limited *

    Ordinary £1 Shares         FRB    200    #    #

Locomotive Software Developments Limited *

    Ordinary £1 Shares         FRB    100    #    #

 

10

Name of Company

        

Percentage of

Voting Power
(100% unless

otherwise noted)

   

Type of Business/

Description of Business

   

Number of

Common Shares

Owned

   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

Turnpike 1996 Limited*

    Ordinary £1 Shares         FRB    100    #    #

Turnpike Limited *

    Ordinary £1 Shares         FRB    100    #    #

The IP Systems Operation Limited *

    Ordinary £1 Shares         FRB    2    #    #

Lancastrian Holdings Limited *

    Ordinary £1 Shares         FRB    220,022    416    11,189

Megafone (UK) Limited *

    Ordinary £1 Shares         FRB    2    #    #

Psychic Companions Limited *

    Ordinary £1 Shares         FRB    2    #    #

SPPT Limited *

    Ordinary £1 Shares         FRB    2    #    #

Watermark Games Limited *

    Ordinary £0.01 Shares         FRB    3,024,249    57    5,840

SP Manweb plc

    Ordinary £0.50 Shares         FUCO    108,458,370    102,493    1,047,060

Manweb Nominees Limited *

    Ordinary £1 Shares         FRB    100    #    #

Manweb Services Limited

    Ordinary £1 Shares         FRB    75,000    142    142

Manweb Share Scheme Trustees Limited *

    Ordinary £1 Shares         FRB    2    #    #

St Clements Services Ltd

    Ordinary £1 Shares    13    FRB    5    #    #

Electralink Ltd

    Ordinary £0.10 Shares    11    FRB    1,336    #    #

 

11

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common
Shares Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

ScottishPower NA 1 Limited

    Ordinary £1 Shares         HC    158,499,452    299,563    494,335

ScottishPower NA 2 Limited

    Ordinary £1 Shares         HC    1,426,495,072    2,696,076    4,449,026

PacifiCorp Holdings, Inc. (PHI)

    Common         HC    5,594    #    4,169,909

Pacific Klamath Energy, Inc.

    Common         SPS    50    #    1,243

PacifiCorp (FN 9)

   

Common, No Par

Secured Debt

AIR 6.6 % No

Arrears

Unsecured Ex. Debt

         Public Utility    312,176,089    312,176    2,894,103
    

AIR 2.0 % No

Arrears

Pref (mult Series)

              1,014,633          

Centralia Mining Co.

    Common, No Par         Coal Mining Business    100    #    #

Energy West Mining Company

    Common, No Par         Coal Mining Business    100    #    #

Glenrock Coal Co.

    Common, No Par         Coal Mining Business    100    #    #

Interwest Mining Co.

    Common, No Par         Coal Mining Business    100    #    61

Pacific Minerals, Inc.

    Common, No Par         Coal Mining Business    500    #    #

Bridger Coal Co. (FN 10 )

    Joint Venture Interest    66.67    Coal Mining Business         #    #

PacifiCorp Environmental Remediation Co. (FN 11)

    Common, No Par    89.90    Rain Forest Carbon    8,900    #    1,944

 

12

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common Shares
Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

PacifiCorp Future Generations, Inc.

    Common         SPS-  Rain Forest Carbon    10    #    #

Canopy Botanicals, Inc. (Delaware) (77.85%) (FN 12)

    Common    77.85    Rain Forest Carbon    25,102    #    #

Canopy Botanicals, S.R.L. (49%) (FN 13)

    Member Interest    49    Rain Forest Carbon    N/A    N/A    N/A

PacifiCorp Investment Management, Inc.

    Common, No Par         Non-utility Holding
Company		    100    #    #

Trapper Mining Inc. (FN 14)

    Common    21.4    Coal Mining Business         N/A    N/A

Scottish Power Finance (US), Inc. * (FN 15)

    Common $0.10         FE    100    N/A    N/A

PacifiCorp Group Holdings Co.

   

Common

Unsecured Debt-

$960,750.72

Int. Rate – 1.9725%

         Non-utility Holding
Company		    100    #    456,992

New Energy Holdings I, Inc. *

    Common, No Par         FRB    100    #    19,837

EnergyWorks Holdings I *

    Common         FRB    2    #    4,427

New IndiaPower Company One *

    Common         FRB    50    N/A    N/A

New IndiaPower Company Two *

    Common         FRB    1    N/A    N/A

PacifiCorp Trans, Inc. *

    Common         Corporate Aircraft
Scheduling		    100    #    1,752

PACE Group, Inc.

    Common, No Par         SPS    100    #    5,745

Pacific Kinston Energy, Inc. * (FN 16)

    Common         Power Management    10    N/A    N/A

PacifiCorp Development Company *

    Common, No Par         SPS    10    #    1,661

PacifiCorp Generation International BV (FN 17)

    1,000 NLG         SPS    40    #    #

 

13

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common
Shares Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

Pacific Bakun Energy BV (FN 18)

    NLG         SPS         #    #

PacifiCorp Energy Services, Inc. (FN 19)

    Common, No Par         SPS    10    #    #

PacifiCorp Energy Ventures, Inc.

    Common, No Par         SPS    10    #    959

Nth Power Management, L.P. (FN 20)

   

Limited Partnership

Interest

    18.8    Energy-related    N/A    N/A    N/A

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common Shares
Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

PacifiCorp Financial Services, Inc.

    Common         SPS Non-utility Holding
Company		    179,005    1,790    58,045

Birmingham Syn Fuel I, Inc. *

    Common         Synthetic Fuel Company    100    #    34,168

Leblon Sales Corporation

    Common, No Par         Leverage Leasing Activity    1,000    #    50,915

CS Holdings, Inc. (FN 21)

    Common         SPS         #    #

Koala FSC, Ltd. (FN 22)

    Common         SPS         #    #

Pacific Development (Property), Inc.

    Common, No Par         SPS    1    #    780

Pacific Harbor Capital, Inc.

    Common         Leverage Leasing Activity    407    #    36,105

PFI International, Inc.*

    Common         Leverage Leasing Activity    1,000    #    #

PHC Properties Corporation

    Common         SPS    100    #    3,109

PCC Holdings, Inc.

   

Common

Preferred

         SPS    10    51    20,331

Hillsborough Leasing Services, Inc. *

    Common         SPS    1    N/A    N/A

 

14

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common Shares
Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

PNF Holdings, Inc. * (FN 23)

    Common, No Par         SPS    100    #    #

VCI Acquisition Co. * (FN 24)

   

Common

Preferred

         SPS    100
0		    N/A    N/A

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common Shares
Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

PacifiCorp International Group Holdings Company

    Common, No Par         FRB    100    #    144,355

PacifiCorp Hazelwood Pty. Ltd. *

    Member Interest         FRB    100    N/A    N/A

Hazelwood Australia, Inc. *

    Common         FRB    100    #    #

Hazelwood Ventures, Inc. *

    Common         FRB    100    #    #

Hazelwood Finance LP (12.55%) (FN 25) *

    Limited Partnership Interest    12.55    FRB    N/A    N/A    N/A

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common Shares
Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

PPM ENERGY, INC.

    Common, No Par         Non-utility Holding
Company		    100    190,995    190,995

Atlantic Renewable Energy Corporation (FN 26 )

    Common         Non-utility Holding
Company		    100    10,837    10,837

Bishop Wind Farm LLC (FN 27 )

    LLC Interest         Wind Development    N/A    #    #

Casselman Windpower LLC (FN 28)

    LLC Interest         Wind Development    N/A    #    #

Chestnut Ridge Windpower LLC (FN 29)

    LLC Interest         Wind Development    N/A    #    #

 

15

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common Shares
Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

West Virginia Windpower LLC (FN 30)

    LLC Interest         Wind Development    N/A    #    #

Atlantic Renewable Projects LLC (FN 31)

    LLC Interest         Wind Development    N/A    33,382    33,382

Flat Rock Windpower II LLC (FN 32)

    LLC Interest    50    Wind Development    N/A    #    #

Flat Rock Windpower LLC (FN 33)

    LLC Interest    50    Wind Development    N/A    66,602    33,301

Eastern Desert Power LLC (FN 34)

    LLC Interest         EWG    N/A    #    #

Elk River Windfarm LLC (FN 35)

    LLC Interest         EWG    N/A    #    #

Klondike Wind Power II LLC (FN 36)

    LLC Interest         EWG    N/A    #    #

Klondike Wind Power III LLC (FN 37)

    LLC Interest         Wind Development    N/A    #    #

Leaning Juniper Wind Power LLC (FN 38)

    LLC Interest         Wind Development    N/A    #    #

Phoenix Wind Power LLC

    LLC Interest         EWG    N/A    494    494

Klamath Energy, LLC

    LLC Interest         EWG    N/A    #    #

Klamath Generation, LLC

    LLC Interest         SPS    N/A    #    #

West Valley Leasing Company LLC

    LLC Interest         SPS    N/A    31,310    31,310

Klondike Wind Power LLC

    LLC Interest         EWG    N/A    837    837

Moraine Wind LLC

    LLC Interest         EWG    N/A    3,078    3,078

Moraine Wind II LLC *

    LLC Interest         Wind Development    N/A    #    #

Heartland Wind LLC *

    LLC Interest         SPS    N/A    #    #

Flying Cloud Power Partners, LLC

    LLC Interest         EWG    N/A    2,455    2,455

Pacific Wind Development LLC

    LLC Interest         Wind Development    N/A    #    #

Mountain View Power Partners III LLC

    LLC Interest         EWG    N/A    1,929    1,929

Trimont Wind I LLC

    LLC Interest         EWG    N/A    #    #

 

16

Name of Company

         Percentage of
Voting Power
(100% unless
otherwise noted)
    Type of Business
    Number of
Common Shares
Owned
   

Issuer

Book Value

$ 000s

   

Owner’s

Book Value

$ 000s

Scenic Vista Wind Power, LLC (FN 39)

    LLC Interest         Wind Development         #    #

PPM Colorado Wind Ventures Inc

    Common         Non-utility holding
company		    100    #    #

Colorado Wind Ventures LLC

    LLC Interest    50    SPS    N/A    79,063    39,532

Colorado Green Holdings LLC

    LLC Interest         EWG    N/A    79,063    79,063

Enstor, Inc.

    Common         Nonutility Holding
Company for Energy-
Related Businesses		    1,000    32,765    32,765

Houston Hub Storage and Transportation LP (FN 40)

    Limited Partnership Interest    99    Gas Storage    N/A    #    #

Katy Storage & Transportation, LP (FN 41)

    Limited Partnership Interest    99    Gas Storage    N/A    34,401    34,057

Waha Storage & Transportation LP (FN 42)

    Limited Partnership Interest    99    Gas Storage    N/A    10    10

City Gate LLC

    LLC Interest         Gas Storage    N/A    #    #

Columbia Gas Storage LLC

    LLC Interest         Gas Storage    N/A    #    #

Delta Gas Storage LLC

    LLC Interest         Gas Storage    N/A    #    #

Enstor Louisiana LLC

    LLC Interest         Gas Storage    N/A    #    #

Brentwood Gas Storage LLC

    LLC Interest         Gas Storage    N/A    #    #

Enstor Operating Co., LLC

    LLC Interest         Gas Storage    N/A    #    #

Katy Storage &

Transportation,

LP

    Limited Partnership Interest    1    Gas Storage    N/A    34,401    34,401

Houston Hub Storage

and Transportation LP

    Limited Partnership Interest    1    Gas Storage    N/A    #    #

Waha Storage &

Transportation LP

    Limited Partnership Interest    1    Gas Storage    N/A    10    #

 

Footnotes

 

17

(FN 1)  Acquired 9/29/04 – Incorporated in England – FRB – Operation of windfarm

 

(FN 2)  Acquired 6/1/04 – Incorporated in England – FRB – Operation of power station

 

(FN 3)  Acquired 6/1/04 – Incorporated in Cayman Islands – FE – Financing Entity

 

(FN 4)  Acquired 6/1/04 – Incorporated in England – FRB – Operational services at power station

 

(FN 5)  Formed 5/28/04 – Incorporated in Scotland – FE – inactive/dormant entity

 

(FN 6)  Acquired 9/28/04 – Incorporated in England – FRB – Operational services at power station

 

(FN 7)  Acquired 9/28/04 – Incorporated in England – FRB – Operation of generating plant

 

(FN 8)  Formed 6/30/04 – Incorporated in Ireland – FRB – Underwriting of insurance risk

 

(FN 9)  Inter company loans – PacifiCorp and certain affiliates currently participate in an intercompany loan agreement (“PacifiCorp Loan Agreement”) allowing PacifiCorp to loan up to $200 million and allowing these affiliates to loan unlimited amounts to PacifiCorp. The PacifiCorp Loan Agreement was approved by the Oregon Public Utility Commission. Loans made under the PacifiCorp Loan Agreement are payable on demand, are evidenced by notes and bear interest at PacifiCorp’s short term borrowing rate whether the loan is to or from PacifiCorp. PacifiCorp Group Holdings Company (“PGHC”) also participates in an intercompany borrowing agreement (“PGHC Loan Agreement,” and collectively, “Loan Agreements”) allowing up to $350 million in loans to be made among PGHC and its subsidiaries, and among PGHC and certain other subsidiaries of PacifiCorp, including PacifiCorp Environmental Remediation Company, PacifiCorp Minerals, Inc. and PacifiCorp Investment Management, Inc. Loans made under the PGHC Loan Agreement are payable on demand and if from PGHC, bear interest at a negotiated rate or at PGHC’s short-term borrowing rate if the borrower is PGHC. Descriptions of the terms and conditions of the Loan Agreements are incorporated by reference to Scottish Power Certificates of Notification under File No. 040- 00485.

 

(FN 10)  Pacific Minerals, Inc. (66.66%); Idaho Power (33.34%) (nonassociate)

 

(FN 11)  PacifiCorp (89.90%); CH2M Hill (10.10%) (nonassociate)

 

(FN 12)  PacifiCorp Future Generations, Inc. (77.85%); BP America, Inc. (22.15%) (nonassociate)

 

(FN 13)  Fundacion Amigos de la Naturaleza (51%) (nonassociate); Canopy Botanicals, Inc. (49%)

 

(FN 14)  Salt River Project Agricultural Improvement and Power District (32.1%) (nonassociate); Tri-state Generation & Transmission Association, Inc. (26.57%); and Platte river Power authority (19.93) (nonassociate)

 

18

(FN 15)  Formed 10/5/04 – Incorporated in Delaware – FE – inactive/dormant

 

(FN 16)  Dissolved 8/25/04 – No longer a required business

 

(FN 17)  Dissolved 3/31/05 – No longer a required business

 

(FN 18)  Dissolved 3/31/05 – No longer a required business

 

(FN 19)  Dissolved 8/27/04 – No longer a required business

 

(FN 20)  Partnership – cash investment

 

(FN 21)  Dissolved 12/8/04 – No longer a required business

 

(FN 22)  Dissolved 10/8/04 – No longer a required business

 

(FN 23)  Dissolved 6/1/04 – No longer a required business

 

(FN 24)  Dissolved 5/11/04 – No longer a required business

 

(FN 25)  Partnership – cash investment – National Power (87.5%) (nonassociate); PacifiCorp Hazelwood Pty Ltd. (12.5%)

 

(FN 26)  Acquired 12/29/04 – Delaware Corporation – Wind Project

 

(FN 27)  Acquired 12/29/04 – Delaware Corporation – Wind Project

 

(FN 28)  Acquired 12/29/04 – Delaware Corporation – Wind Project

 

(FN 29)  Acquired 12/29/04 – Delaware Corporation – Wind Project

 

(FN 30)  Acquired 12/29/04 – Delaware Corporation – Wind Project

 

(FN 31)  Acquired 2/15/05 – Delaware Corporation – Wind Project

 

(FN 32)  Acquired 2/15/05 – Delaware Corporation – Wind Project

 

(FN 33)  Acquired 2/15/05 – Delaware Corporation – Wind Project

 

(FN 34)  Acquired 8/6/04 – Delaware Corporation – Wind Project

 

(FN 35)  Formed 12/10/04 – Kansas Corporation – Wind Project

 

19

(FN 36)  Change of name effective August 18, 2004 from PPM Alta Mesa LLC – Oregon Corporation – Wind Project

 

(FN 37)  Formed 1/27/05 – Oregon Corporation – Wind Project

 

(FN 38)  Formed 1/27/05 – Oregon Corporation – Wind Project

 

(FN 39)  Formed 10/4/04 – Delaware Corporation – Wind Project

 

(FN 40)  Formed 11/30/04 – Texas LP – cash investment – developmental company that will become a Rule 58 entity that will hold gas storage assets – Enstor Inc 99%; Enstor Operating Company 1%.

 

(FN 41)  Partnership – Texas LP – cash investment – developmental company that will become a Rule 58 entity that will hold gas storage assets – Enstor Inc 99%; Enstor Operating Company 1%.

 

(FN 42)  Formed 2/26/04 – Texas LP – cash investment – Rule 58 entity that holds gas storage assets – Enstor Inc 99%; Enstor Operating Company 1%

 

# Less than $2,000.00

 

* Inactive/Dormant – An inactive or dormant company refers to a company that does not engage in trading or conduct or solicit business and has no material revenues or income. Inactive or dormant companies are often held until the resolution of contingent liabilities, to maintain certain rights or as a shell to be used in a future transaction.

 

(HC) holding company

 

(FE) finance entity

 

(FUCO) foreign utility company

 

(EWG) exempt wholesale generator

 

(FRB) fuco-related business

 

(SPS) special purpose subsidiary

 

(AIR) weighted average interest rate

 

20

ITEM 2. ACQUISITION OR SALES OF UTILITY ASSETS.

 

On May 27, 2004, PacifiCorp, as buyer entered into an asset purchase and sales agreement with Summit Vineyard LLC and Lake Side Power LLC as sellers/developers for the development and construction of a natural gas fired combined cycle plant with two Westinghouse W501 gas turbines and a related gas pipeline for $275,000,000. The project is under construction and PacifiCorp anticipates that it will become operational in the summer of 2007.

 

Pursuant to an Asset Purchase Agreement by and between Price City, Utah and PacifiCorp, dated September 1, 2004, PacifiCorp sold certain electrical distribution facilities operating at nominal 34.5 kV or below, including poles, cross arms, overhead conductors, attachments and supports and other miscellaneous equipment. The purchase price for these assets was $474,708.86. The exemption claimed is Rule 44(b).

 

Pursuant to the Skookumchuck Facilities Purchase and Sale Agreement by and among PacifiCorp, Public Utility District No. 1 of Snohomish County, Washington, Puget Sound Energy, Inc., City of Tacoma, Washington, Avista Corporation, City of Seattle, Washington and Public Utility District No. 1 of Grays Harbor County, Washington as Sellers and 2677588 Washington LLC, as Buyer, dated as of November 25, 2003 (closed October 5, 2004), PacifiCorp and other nonassociate companies sold their interests in the Skookumchuck dam, hydroelectric facility, and related assets. PacifiCorp’s share of the purchase price for these assets was 47.5 percent or approximately $3,595,927. The exemption claimed is Rule 44(b).

 

ITEM 3. ISSUE, SALE, PLEDGE, GUARANTEE OR ASSUMPTION OF SYSTEM SECURITIES.

 

Form of Debt Securities Indenture dated March 21, 2005 incorporated by reference from Exhibit 4.1 to the company’s form 6-K furnished to the SEC on March 21, 2005.

 

First Supplemental Indenture dated March 21, 2005 incorporated by reference from Exhibit 4.10 to the company’s form 6-K furnished to the SEC on March 21, 2005.

 

ITEM 4. ACQUISITION, REDEMPTION, OR RETIREMENT OF SYSTEM SECURITIES.

 

Numbers in Thousands

 

Fiscal Year 2005

 

Investment

    Name of
Acquiring/
Redeeming
Company
    No. of
Shares
    Consider.
Principal
Amount
£ or $
    %
voting
    Book Value
£ - $
   

Author./

Exemption

$7.48 Preferred Stock    PacifiCorp    75    $ 7,500    N/A    $ 7,500    Rule 42

 

ITEM 5. INVESTMENTS IN SECURITIES OF NONSYSTEM COMPANIES.

 

Category 1:

 

Name of Owner

    Name of
Issuer
    Description
of
Securities
   

Number of
Shares/

Principal
Amount
Owned

    General
Nature of
Issuers
Business
    Book Value
($000s)
    Percentage
of Voting
Power

None

    None    None    None    None    None    None

 

21

Category 2:

 

Name of Owner

    Name of
Issuer
    Description
of
Securities
   

Number of
Shares/

Principal
Amount

Owned

    General
Nature of
Issuers
Business
    Book Value
($000s)
    Percentage
of Voting
Power

None

    None    None    None    None    None    None

 

None of the affiliates are public utility companies or other nonsystem or system owners.

 

ITEM 6. OFFICERS AND DIRECTORS.

 

PART I.

 

The following abbreviations are used for positions. Principal business addresses are listed.

 

Principal Business Address

    N/A

Position

    Code

Director

    D

President

    P

Chief Executive Officer

    CEO

Chief Financial Officer

    CFO

Chief Accounting Officer

    CAO

Chief Information Officer

    CIO

Chief Production Officer

    CPO

Senior Executive Vice President

    SEVP

Executive Vice President

    EVP

Senior Vice President

    SVP

Financial Vice President

    FVP

Vice President

    VP

Controller/Comptroller

    C

Counsel

    L

Secretary

    S

Assistant Secretary

    AS

Treasurer

    T

Assistant Treasurer

    AT

General Manager

    GM

Managing Director

    MD

Commissioner

    M

Chairman of the Board

    COB

 

22

Name and Principal Address

   

Title

    Code

EXECUTIVE DIRECTORS –

Scottish Power plc

          

IAN RUSSELL

1 Atlantic Quay

Glasgow G2 8SP

    Chief Executive    CEO

CHARLES BERRY

1 Atlantic Quay

Glasgow G2 8SP

    Executive Director - UK    D

DAVID NISH

1 Atlantic Quay

Glasgow G2 8SP

    Finance Director    CFO

JUDI A. JOHANSEN

825 NE Multnomah

Suite 2000, Portland

Oregon 97232

    President & CEO PacifiCorp    D

SIMON LOWTH

1 Atlantic Quay

Glasgow G2 8SP

    Director, Corporate Strategy & Development    D

NON-EXECUTIVE

DIRECTORS – SCOTTISH

POWER PLC

          

CHARLES MILLER SMITH

1 Atlantic Quay

Glasgow G2 8SP

    Chairman    D

EUAN BAIRD

1 Atlantic Quay

Glasgow G2 8SP

    Non-executive Director    D

VICKY BAILEY

1 Atlantic Quay

Glasgow G2 8SP

    Non-executive Director    D

PHILIP CARROLL

1 Atlantic Quay

Glasgow G2 8SP

    Non-executive Director    D

NANCY WILGENBUSCH

1 Atlantic Quay

Glasgow G2 8SP

    Non-executive Director    D

NOLAN KARRAS

1 Atlantic Quay

Glasgow G2 8SP

    Non-executive Director    D

DONALD BRYDON

1 Atlantic Quay

Glasgow G2 8SP

    Non-executive Director    D

 

23

NICK ROSE

1 Atlantic Quay

Glasgow G2 8SP

    Non-executive Director    D
OFFICERS – SCOTTISH POWER PLC          

DOMINIC FRY

1 Atlantic Quay

Glasgow G2 8SP

    Group Director, Corporate Communications    —  

TERRY HUDGENS

1125 NW Couch St, Suite 700, Portland, Oregon, 97209

    Chief Executive Officer – PPM Energy Inc.    —  

RONNIE MERCER

825 NE Multnomah, Suite 2000, Portland, Oregon 97232

    Executive VP, Operations, PacifiCorp    —  

ANDREW MITCHELL

1 Atlantic Quay

Glasgow G2 8SP

    Company Secretary    S

MICHAEL PITTMAN

825 NE Multnomah, Suite 2000, Portland, Oregon 97232

    Group Director, Human Resources    —  

JAMES STANLEY

1 Atlantic Quay

Glasgow G2 8SP

    Legal, Commercial & Compliance Director    L

 

Name and Principal Address

   

Title

    Code
DIRECTORS – PACIFICORP          

Ian Russell

1 Atlantic Quay

Glasgow G2 8SP

    Chairman of the Board    COB

Barry G. Cunningham

201 South Main

Suite 2300

Salt Lake City UT 84111

    Director    D

Andrew P. Haller

825 NE Multnomah

Suite 2000

Portland OR 97232

    Director    D

Judith A. Johansen

825 NE Multnomah

Suite 2000

Portland OR 97232

    Director    D

Nolan E. Karras

4695 South 1900 West

#3 Roy UT 84067

    Director    D

 

24

Andrew N. MacRitchie

825 NE Multnomah

Suite 2000

Portland OR 97232

    Director    D

Richard D. Peach

825 NE Multnomah

Suite 2000

Portland OR 97232

    Director    D

Michael J. Pittman

825 NE Multnomah

Suite 2000

Portland OR 97232

    Director    D

A. Richard Walje

825 NE Multnomah

Suite 2000

Portland OR 97232

    Director    D

Matthew R. Wright

825 NE Multnomah

Suite 2000

Portland OR 97232

    Director    D
OFFICERS – PACIFICORP          

Judith A. Johansen

825 NE Multnomah

Suite 2000

Portland OR 97232

    President and Chief Executive Officer    P
CEO

Andrew N. MacRitchie

825 NE Multnomah

Suite 2000

Portland OR 97232

    Executive Vice President    EVP

Matthew R. Wright

825 NE Multnomah

Suite 2000

Portland OR 97232

    Executive Vice President    EVP

Barry G. Cunningham

201 South Main

Suite 2300

Salt Lake City UT 84111

    Senior Vice President    SVP

Donald N. Furman

825 NE Multnomah

Suite 2000

Portland OR 97232

    Senior Vice President    SVP

Andrew P. Haller

825 NE Multnomah

Suite 2000

Portland OR 97232

    Senior Vice President, General Counsel and Corporate Secretary    SVP
GC
S

Robert A. Klein

1125 NW Couch

Suite 700

Portland OR 97209

    Group Energy Risk Director    —  

Michael J. Pittman

825 NE Multnomah

Suite 2000

Portland OR 97232

    Senior Vice President    SVP

 

25

A. Richard Walje

825 NE Multnomah

Suite 2000

Portland OR 97232

    Executive Vice President    SVP

Stan K. Watters

825 NE Multnomah

Suite 2000

Portland OR 97232

    Senior Vice President    SVP

Richard D. Peach

825 NE Multnomah

Suite 2000

Portland OR 97232

    Chief Financial Officer    CFO

Donald D. Larson

201 South Main

Suite 2300

Salt Lake City UT 84111

    Vice President    VP

Ernest E. Wessman

201 South Main

Suite 2300

Salt Lake City UT 84111

    Vice President    VP

Bruce N. Williams

825 NE Multnomah

Suite 1900

Portland OR 97232

    Treasurer    T

Jeffery B. Erb

825 NE Multnomah

Suite 1800

Portland OR 97232

    Assistant Secretary    AS

Michael G. Jenkins

201 South Main

Suite 2200

Salt Lake City UT 84111

    Assistant Secretary    AS

Larry O. Martin

825 NE Multnomah

Suite 19000

Portland OR 97232

    Assistant Secretary    AS

Tanya S. Sacks

825 NE Multnomah

Suite 1900

Portland OR 97232

    Assistant Treasurer    AT

 

See also Attachment 1.

 

Part II. Financial Connections.

 

Name

   

Name and Location of

Financial Institution

   

Position held in

Financial Institution

    Applicable
Exemption
Rule

Charles Berry

    Securities Trust of Scotland plc UK    Non-executive Director    Rule 70

Donald Brydon

    AXA Investment Managers UK    Non-executive Chairman    Rule 70

Nolan Karras

    Beneficial Life Insurance Company USA    Non-executive Director    Rule 70

Dr Nancy Wilgenbusch

    West Coast Bank USA    Director    Rule 70

 

26

ITEM 6. EXECUTIVE COMPENSATION - PART III.

 

See also Attachment 2.

 

(a) Summary Compensation Tables. The following tables set forth information concerning any Chief Executive Officer and the four most highly compensated executive officers for ScottishPower and PacifiCorp as of March 31, 2005, as defined by the Securities and Exchange Commission.

 

Key terms used in this Item will have the following meanings:-

 

ESP

  

Employee Savings Plan

ESOP

  

Employee Stock Ownership Plan

SBP

  

Supplemental Benefit Plan

ERISA

  

Employee Retirement Income S.A

 

EXECUTIVE COMPENSATION - PACIFICORP

 

The following table sets forth information concerning compensation for services in all capacities to the Company for the years ended March 31, 2005, 2004 and 2003 of those persons who were the Chief Executive Officer of the Company during any portion of the year ended March 31, 2005 and the four other most highly compensated executive officers of the Company who were serving as executive officers at the end of the last completed fiscal year.

 

Summary Compensation Table

 

               Long-Term Compensation
          

Name and Principal Position

    Year
    Annual Compenstion (a)
    All Other
Compensation (d)
    Restricted
Stock
Awards (e)
    Securities
Underlying
Options
Payout
    LTIP
Payout (f)
    ScottishPower
Performance
Shares (g)
      Salary
    Bonus (c)
               

Judith A. Johansen
President and
Chief Executive Officer

    2005
2004
2003		    $
 
 		 743,750
589,394
492,444		    $
 
 		 437,500
337,500
149,767		    $
 
 		 23,311
22,883
21,170		    $
 
 		 —  
—  
—  		    52,228
61,475
61,825		    $
 
 		 —  
—  
—  		    19,916
12,458
9,199

Michael J. Pittman
Senior Vice President

    2005
2004
2003		     
 
 		 323,750
313,125
300,000		     
 
 		 189,000
187,500
47,057		     
 
 		 20,329
20,097
18,860		     
 
 		 —  
—  
—  		    33,948
38,729
50,954		     
 
 		 —  
—  
—  		    6,904
7,849
7,581

Andrew P. Haller
Senior Vice President,
General Counsel and
Corporate Secretary

    2005
2004
2003		     
 
 		 334,480
327,996
310,930		     
 
 		 167,137
190,109
132,020		     
 
 		 20,515
20,165
21,037		     
 
 		 —  
—  
—  		    11,667
13,530
19,165		     
 
 		 —  
—  
23,069		    4,746
5,484
5,069

A. Richard Walje
Senior Vice President

    2005
2004
2003		     
 
 		 317,307
299,544
277,604		     
 
 		 158,108
127,557
95,550		     
 
 		 20,270
83,173
19,278		     
 
 		 —  
—  
—  		    16,613
17,751
24,840		     
 
 		 —  
—  
—  		    6,757
7,195
6,570

Matthew R. Wright (b)
Executive Vice President

    2005
2004
2003		     
 
 		 292,481
253,612
249,997		     
 
 		 141,945
127,527
56,048		     
 
 		 151,425
62,766
67,456		     
 
 		 —  
—  
—  		    15,331
10,502
11,704		     
 
 		 —  
—  
—  		    6,236
6,301
4,681

 

27

(a) May include amounts deferred pursuant to the Compensation Reduction Plan, under which key executives and directors may defer receipt of cash compensation until retirement or a preset future date. Amounts deferred are invested in ScottishPower American Depositary Shares or a cash account on which interest is paid at a rate equal to the Moody’s Intermediate Corporate Bond Yield for AA-rated Public Utility Bonds.

 

(b) Salary includes foreign housing benefits paid to Mr. Wright. These amounts were $39,380 for the year ended March 31, 2004 and $53,961 for the year ended March 31, 2003.

 

(c) Amounts in this column for the year ended March 31, 2003, include a promotion bonus in the amount of $41,556 for Ms. Johansen.

 

(d) Amounts shown for the year ended March 31, 2005, include:

 

  (i) Company contributions to the PacifiCorp Employee Savings and Stock Ownership Plan (the “Savings Plan”) of $12,073 for Ms. Johansen, $10,354 for Mr. Pittman, $10,508 for Mr. Haller, $10,315 for Mr. Walje and $12,197 for Mr. Wright

 

  (ii) Portions of premiums on term life insurance policies that PacifiCorp paid in the amounts of $2,238 for Ms. Johansen, $975 for Mr. Pittman, $1,007 for Mr. Haller, $955 for Mr. Walje and $880 for Mr. Wright. These benefits are available to all employees.

 

  (iii) Annual vehicle allowances paid to Ms. Johansen and Messrs. Pittman, Haller, Walje and Wright in the amounts of $9,000 each. The amount of annual vehicle allowance for Mr. Wright was $10,350 for the year

ended March 31, 2004, and $10,800 for the year ended March 31, 2003.

 

  (iv) Relocation benefits paid to Mr. Walje of $62,849 for the year ended March 31, 2004.

 

  (v) Additional international assignment payments to Mr. Wright of $27,739 for the year ended March 31, 2005, $45,299 for the year ended March 31, 2004, and $56,656 for the year ended March 31, 2003, for cost of living and foreign service premium. Also includes international assignee localization payments to Mr. Wright of $101,609 for the year ended March 31, 2005.

 

28

(e) On March 31, 2005, the aggregate value of all restricted stock holdings, based on the market value of ScottishPower American Depositary Shares at March 31, 2005, without giving effect to the diminution of value attributed to the restrictions on such stock, was $38,220 for Ms. Johansen, $14,352 for Mr. Pittman, $30,420 for Mr. Haller and $14,352 for Mr. Walje. The aggregate number of restricted share holdings was 1,225 for Ms. Johansen, 460 for Mr. Pittman, 975 for Mr. Haller and 460 for Mr. Walje. Regular quarterly dividends are paid on the restricted stock. Participants may defer receipt of restricted stock wards to their stock accounts under the Compensation Reduction Plan.

 

(f) Represents the dollar value of restricted stock shares awarded under the PSIP prior to PacifiCorp’s acquisition by ScottishPower that vested and were distributed to the named officer in the form of ScottishPower American Depositary Shares.

 

(g) Represents the number of ScottishPower American Depositary Shares contingently granted in 2005, 2004 and 2003 that can be earned under the terms of the ScottishPower LTIP.

 

SUMMARY COMPENSATION TABLE – SCOTTISH POWER PLC

 

The following table provides details of the remuneration and pensions interests of the directors of Scottish Power plc and the information is audited.

 

    

Basic Salary

£ 000’s

   

Bonuses

£ 000’s

   

Benefits in Kind

£ 000’s

   

Total

£ 000’s

TOTAL EMOLUMENTS

    2005
    2004
    2005
    2004
    2005
    2004
    2005
    2004

Chairman and executive directors

                                        

Charles Miller Smith (Chairman)

    275.0    275.0    —      —      —      4.7    275.0    279.7

Ian Russell

    705.0    650.0    627.5    414.4    47.6    32.7    1,380.1    1,097.1

Charles Berry

    400.0    315.0    382.0    212.6    37.7    27.4    819.7    555.0

Judi Johansen*

    406.3    206.6    213.3    258.3    11.5    3.2    631.1    468.1

Simon Lowth

    430.0    242.1    354.8    151.3    16.1    6.7    800.9    400.1

David Nish

    430.0    415.0    387.0    269.8    41.8    31.7    858.8    716.5
    
  
  
  
  
  
  
  

Total

    2,646.3    2,103.7    1,964.6    1,306.4    154.7    106.4    4,765.6    3,516.5
    
  
  
  
  
  
  
  

 

    

Fees

£ 000’s

   

Bonuses

£ 000’s

   

Benefits in Kind

£ 000’s

   

Total

£ 000’s

     2005
    2004
    2005
    2004
    2005
    2004
    2005
    2004

Non-executive directors (fees and expenses)

                                        

Euan Baird

    37.0    32.8    —      —      —      2.9    37.0    35.7

Mair Barnes (retired 23 July 2004)

    13.7    38.0    —      —      0.6    3.4    14.3    41.4

Donald Brydon

    53.8    29.6    —      —      13.4    0.1    67.2    29.7

Philip Carroll

    55.0    23.8    —      —      0.6    1.5    55.6    25.3

Sir Peter Gregson (retired 23 July 2004)

    18.7    51.0    —      —      0.7    3.0    19.4    54.0

Nolan Karras**

    64.3    53.9    —      —      —      3.7    64.3    57.6

Nick Rose

    55.1    38.8    —      —      11.8    1.7    66.9    40.5

Vicky Bailey (appointed 1 June 2004)

    34.5    —      —      —      2.2    —      36.7    —  

Nancy Wilgenbusch** (appointed 1 June 2004)

    39.9    —      —      —      —      —      39.9    —  
    
  
  
  
  
  
  
  

Total

    372.0    267.9    —      —      29.3    16.3    401.3    284.2
    
  
  
  
  
  
  
  

 

29

Other emoluments

 

* Conversion rate used for Judi Johasen is £1=$1.846 being the average exchange rate during the year.

 

** Nolan Karras and Nancy Wilgenbusch received emoluments in the US of £8,667 (2004 £9,637) and £2,709 respectively. These amounts relate to services to the Utah and PacifiCorp regional advisory boards and are paid in the form of cash and shares. The amounts are included within “Fees” in the above table.

 

(i) The emoluments of the highest paid director (Ian Russell) excluding pension contributions were £1,380,079 (2004 £1,097,144).

 

Option Grants in Last Fiscal Year PacifiCorp

 

The following table sets forth information regarding options to purchase ScottishPower American Depositary Shares granted during the year ended March 31, 2005, to each named executive officer under the ExSop. All options become exercisable for one-third of the shares covered by the option on each of the first three anniversaries of the grant date

 

     Individual Grants

Name

    Number of
Securities
Underlying
Options
Granted
    % of Total
Options
Granted to
Employees
in Fiscal
Year
   

Exercise
or Base
Price

$/Sh

   

Expiration

Date

    Potential Realizable Value
at Assumed Annual Rates
of Stock Price
Appreciation for Option
Term
               5%
    10%

Judith A. Johansen

    52,228    6.84    $ 28.72    May-26-2014    $ 943,334    $ 2,390,595

Michael J. Pittman

    33,948    4.44      28.72    May-26-2014      613,164      1,553,877

Andrew P. Haller

    11,667    1.53      28.72    May-26-2014      210,728      534,025

A. Richard Walje

    16,613    2.17      28.72    May-26-2014      300,062      760,415

Matthew R. Wright

    15,331    2.01      28.72    May-26-2014      276,906      701,735

 

Aggregated Option Exercises at March 31, 2005 and Year-End Option Values

 

The following table sets forth information regarding the aggregate options exercised during the fiscal year and the option values at the end of the fiscal year ended March 31, 2005, for each of the named executive officers. All options are for ScottishPower American Depositary Shares and include options granted under the PSIP and the ExSOP.

 

    

Shares
Acquired
on
Exercise

   

Value
Realized

   

Number of Securities

Underlying Unexercised

Options at

March 31, 2005

   

Value of Unexercised

In-the-Money Options at

March 31, 2005

Name

          Exercisable
    Unexercisable
    Exercisable
    Unexercisable

Judith A. Johansen

    152,603    $ 711,077    —      124,125    $ —      $ 644,701

Michael J. Pittman

    65,385      286,932    158,088    85,245      8      454,666

Andrew P. Haller

    27,703      95,713    —      31,334      —        171,720

A. Richard Walje

    44,957      207,618    126,069    42,247      —        227,241

Matthew R. Wright (a)

    —        —      3,329    37,536      —        65,636

 

30

  (a) Certain of Mr. Wright’s options are for ScottishPower Ordinary Shares, but are presented as American Depository Shares.

 

Directors’ Interests in the Last Year – Scottish Power plc

 

See Attachment 3

 

Long-Term Incentive Plan Awards in the Last Fiscal Year

 

The following table sets forth information regarding awards made in the year ended March 31, 2005, to each named executive officer under the LTIP. Each LTIP award entitles the executive officer to acquire, at no cost, the number of ScottishPower American Depositary Shares listed in the table, less any withholding for applicable taxes. An award will only vest if the Remuneration Committee is satisfied that certain performance measures related to the sustained underlying financial performance of the ScottishPower group and improvements in customer service standards are achieved over a period of three years commencing with the fiscal year preceding the date an award is made. The number of shares vested depend upon ScottishPower’s comparative Total Shareholder Return performance over the three-year performance period. Total Shareholder Return performance is measured against a peer group of major international energy companies. No shares vest unless ScottishPower’s Total Shareholder Return performance is at least equal to the median performance of the peer group, at which point 40% of the initial award vests. If ScottishPower’s performance is equal to or exceeds the top quartile, 100% of the shares vest. The number of shares that vest for performance between these two points is determined on a straightline basis. Participants may acquire the vested shares at any time after the third anniversary of grant.

 

31

     Number of
Shares, Units
or Other
Rights
    Performance
or Other
Period Until
Maturation
or Payout
    Estimated Future Payouts
Under Non-Stock Priced-Based
Plans
     
               
               

Name

          Exercise or
Threshold
    Target Shares
(a)
    Maximum
Shares

Judith A. Johansen

    19,916    3 years    —      7,966    19,916

Michael J. Pittman

    6,904    3 years    —      2,762    6,904

Andrew P. Haller

    4,746    3 years    —      1,898    4,746

A. Richard Walje

    6,757    3 years    —      2,703    6,757

Matthew R. Wright

    6,236    3 years    —      2,494    6,236

 

(a) Amount to vest if threshold measures and median Total Shareholder Return performance is achieved.

 

Employee Agreements

 

On September 29, 2003, Ms. Johansen and PacifiCorp executed an employment agreement providing for a base salary of $700,000 and a maximum annual incentive award of 75% of base salary. Under the agreement, she is eligible for participation in the LTIP, the ExSOP and the Retirement Plan referred to below, in addition to other benefit plans available for senior-level executives of PacifiCorp. The employment agreement continues until March 31, 2012, unless terminated by either party. Ms Johansen or PacifiCorp may terminate the employment agreement at any time for any reason. However, if Ms. Johansen resigns from PacifiCorp due to a material alteration in compensation or assignment or following a company-initiated relocation, or if PacifiCorp terminates Ms. Johansen without cause, then Ms. Johansen will be entitled to one year’s salary, car allowance and bonus (as modified pursuant to the terms of employment agreement). Additionally, Ms. Johansen agreed to standard confidentiality, non-solicitation terms.

 

On December 9, 2004, Mr. Pittman and PacifiCorp executed an employment agreement providing for a base salary of $325,000 and a maximum annual incentive award of 100% of base salary (unless otherwise modified by the Remuneration Committee). Under the agreement, he is eligible for participation in the LTIP, the ExSOP and the Retirement Plan, in addition to other benefit plans available for senior level executives of PacifiCorp. The employment agreement continues until Mr. Pittman reaches the age of 65, unless terminated by either party. Mr. Pittman or PacifiCorp may terminate the employment agreement at any time for any reason. However, if Mr. Pittman resigns from PacifiCorp due to a material alteration in compensation or assignment or following a company-initiated relocation, or if PacifiCorp terminates Mr. Pittman without case, then Mr. Pittman will be entitled to one year’s base salary, car allowance and bonus (as modified pursuant to the terms of the employment agreement). Additionally, Mr. Pittman agreed to standard confidentiality, non-competition and no-solicitation terms.

 

32

Severance Arrangements

 

The Company’s Executive Severance Plan provides severance benefits to certain executive-level employees who are designated by the Board, including the executive officers named in the Summary Compensation Table (other than Ms. Johansen).

 

Severance benefits are payable for voluntary terminations as a result of a material alteration in position that has a detrimental impact on the executive’s employment or involuntary terminations (including a Company-initiated resignation) for reasons other than cause. Severance payments generally equal one or two times the executive’s annual cash compensation, three months of health insurance benefits and outplacement services.

 

The Executive Severance Plan also provides enhanced severance benefits in the event of certain terminations during the 24-month period following a qualifying change-in-control transaction. Executives designated by the Board are eligible for change-in-control benefits resulting from either a Company-initiated termination without cause or a resignation generally within two months after a material alteration in position or compensation. If qualified for the enhanced severance benefits, an executive would receive severance pay in an amount equal to either two, two and one-half or three times the annual cash compensation of such executive, depending on the level set by the Board. The Company is required to make an additional payment to compensate the executive for the effect of any excise tax. The executive would also receive continuation of subsidized health insurance from six to 24 months depending on length of service and outplacement services.

 

Retirement Plans

 

The Company has adopted non-contributory defined benefit retirement plans for its employees, other than employees subject to collective bargaining agreements that do not provide for coverage. Certain executive officers, including the executive officers named in the Summary Compensation Table, are also eligible to participate in the Company’s nonqualified Supplemental Executive Retirement Plan (the “SERP”). The following description assumes participation in both the Retirement Plan and the SERP. Participants receive benefits at retirement payable for life based on length of service with the Company and average pay in the 60 consecutive months of highest pay out of the last 120 months, and pay for this purpose would include salary and annual incentive plan payments reflected in the Summary Compensation Table above. Benefits are based on 50.0% of final average pay plus 1% of final average pay for each year the the Company meets certain performance goals set for each fiscal year by the Board of Directors. The maximum benefit is 65% of final average pay. Participant may also elect actuarially equivalent alternative forms of benefits. Retirement benefits are reduced to reflect social security benefits as well as certain prior employer retirement benefits. Participants are entitled to receive full benefits upon retirement after age 60 with at least 15 years of services. Participants are also entitled to receive reduced benefits upon early retirement after age 55 or after age 50 with at least 15 years service and five years of participation in the SERP.

 

33

The following table shows the estimated annual retirement benefit payable upon retirement at age 60 as of March 31, 2005. Amounts in the table reflect payments from the retirement plan and the SERP (“the plans”) combined prior to any offset of projected social security benefits and benefits paid from any prior employer plan.

 

Estimated Annual Pension At Retirement (a)

 

     Years of Service (b)

Annual Pay at Retirement Date

    5
    15
    25
    30

$  200,000

    $ 43,333    $ 130,000    $ 130,000    $ 130,000

    400,000

      86,667      260,000      260,000      260,000

    600,000

      130,000      390,000      390,000      390,000

    800,000

      173,333      520,000      520,000      520,000

 1,000,000

      216,667      650,000      650,000      650,000

 

(a) The benefits shown in this table assume that the individual will remain in the employ of the Company until retirement at age 60, that the plans will continue in their present form and that the Company achieves its performance goals under the supplemental plan in all years.

 

(b) The number of credited years of service used to compute benefits under the plans are four for Ms Johansen, four for Mr Haller, twenty five for Mr Pittman, nineteen for Mr Walje and seventeen for Mr Wright.

 

Retention Agreements

 

To retain executives who would otherwise have had the right to resign for any reason between 12 and 14 months following the ScottishPower Merger and qualify for the enhanced change-in-control supplemental retirement benefits, the Company entered into retention agreements with qualifying executives (Messrs, Pittman and Walje). Those retention agreements provided for the same enhanced supplemental retirement benefits if the qualifying executives satisfied the retention criteria. Qualifying executives were required to waive their rights to unilaterally resign and receive the enhanced supplemental retirement benefits, but they are now eligible to receive these same enhancements since they have continued employment through the established retention date of December 1, 2002.

 

These retention agreements also require qualifying executives to waive any rights to executive severance benefits, which they may have otherwise claimed due to material alterations in their positions as of the date of the retention agreement. Unless there is a subsequent “involuntarily termination” or “material alteration” in position as defined in the Severance Plan, this waiver of severance benefits applies to these executives through November 28, 2004. The executives’ waiver of severance benefits was in exchange for the enhanced supplemental retirement benefits described above, retention bonuses determined individually in the Company’s discretion for each executive and special stock option awards that vest over a three-year retention period at 25.0% for each of the first two years and 50.0% in the third year.

 

As noted above, the retention agreement for Messrs, Pittman and Walje expired on November 28, 2004. The executives have satisfied the requirements of, and have received the remuneration and benefits payable under, those agreements.

 

34

ITEM 6. OFFICERS AND DIRECTORS.

 

PART III.

 

(b) Stock Ownership.

 

Beneficial Owner

    Number of shares at
March 31, 2005 (a)(b)

Ian M. Russell

    632,248

Judith A. Johansen

    584,200

Michael J. Pittman

    1,099,942

Andrew P. Haller

    193,183

A. Richard Walje

    775,839

Barry G. Cunningham

    517,056

Nolan E. Karras

    42,446

Andrew N. MacRitchie

    114,417

Richard D. Peach

    89,819

Matthew R. Wright

    88,019

All executive officers and directors as a group (14 persons)

    5,193,421

 

(a) Includes beneficial ownership of (i) shares held by family members even though beneficial ownership of such shares may be disclaimed, (ii) shares held for the account of such persons pursuant to the Company’s Compensation Reduction Plan and the Savings Plan.

 

(b) Includes Ordinary Shares that each person has the right to acquire through options that become exercisable within 60 days after March 31, 2005. Options granted in ScottishPower American Depositary Shares under the PSIP and ExSOP have been converted into options in Ordinary Shares. One American Depositary Share equates to four Ordinary Shares.

 

See also PacifiCorp Form 10-K and Form 20-F – SEC File No. 001-14676 (filed May 27, 2005 and June 29, 2005 respectively)

 

ITEM 7. CONTRIBUTIONS AND PUBLIC RELATIONS.

 

The PacifiCorp Foundation for Learning is a qualified 501(c)(3) non-profit foundation created in 1988 and originally endowed by contributions from PacifiCorp and its subsidiaries. More recently, PacifiCorp made contributions of $3 million in March 2003 and $1 million in May 2004. Administrative expenses incurred by the Foundation, including salaries, travel expenses, supplies, etc., are charged to corporate cost center 11758. Each month the Foundation receives an invoice from PacifiCorp for all charges to CC11758, and payment is made to PacifiCorp from the Foundation’s checking account at Wells Fargo Bank. However, the Foundation is not charged “rent” for use of space and computer equipment. The Foundation is charged for time spent by PacifiCorp personnel in accounting, the tax department and occasional administrative assistance.

 

35

For fiscal year 2005, the Foundation was charged and paid PacifiCorp for the following:

 

Labor

    -         $ 184,024

Legal fees

    -         $ 10,090

Prof. fees

    -         $ 22,231

Depreciation

    -         $ 964

Travel/meetings

    -         $ 7,832

Books/subscrip.

    -         $ 701

Postage/freight

    -         $ 1,441

Computer systems

    -         $ 7,340

Office supplies

    -         $ 933

Membership fees

    -         $ 2,665

Total

              $ 238,221

 

ITEM 8. SERVICE, SALES AND CONSTRUCTION CONTRACTS

 

Excluding (i) transactions included in the annual report on Form U-13-60 of a service company, (ii) the sharing of costs of jointly owned facilities or jointly employed personnel, (iii) contracts for the purchase, sale or interchange of electricity or gas, and (iv) contracts between an exempt wholesale generator or a foreign utility company and a system company, as reported under Item 9, infra, provide the following information:

 

Part I. Furnish the information required by the following table as to contracts for services, including engineering or construction services, or goods supplied or sold by a system company to another system company, and state, in the tabulation or by footnote, the date of the contract and whether it remained in effect at year end.

 

See Attachment 4 Affiliated Services Detail.

 

Part II. Does any system company have a contract to purchase services or goods from any affiliate (other than a system company), or from a company in which any officer or director of the receiving company is a partner or owns 5% or more of any class of equity securities?

 

No

 

If the answer to Part II is yes, and the contract has not already been reported in Item 6, report such contracts in substantially the same detail as specified for Part I, also describing the affiliation.

 

Part III. Does any system company employ any other person for the performance on a continuing basis of management, supervisory or financial advisory services?

 

No

 

If the answer to Part III is yes, state the name of each such person, describe the contract, and the scope of the services and the annual consideration.

 

ITEM 9. WHOLESALE GENERATORS AND FOREIGN UTILITY COMPANIES.

 

ScottishPower UK Holdings Limited, a company organized under the laws of Scotland, whose location and business address is 1 Atlantic Quay Glasgow G2 8SP Scotland UK, is a foreign utility company, which is an intermediate holding company for Scottish Power plc’s U.K. interest in the generation, transmission and distribution business and associated services. Listed below are also the other FUCOs held under ScottishPower UK Holdings Limited, and EWGs in the ScottishPower System.

 

36

In this section a conversion ratio of £1 to $1.89 has been used

 

Part I(a)

 

Name of Company and Location

    Holds Interest in
Company
    Descrip. of Facilities
    Aggregate
Investment
Amount £ - $
   

Retained

Earnings as of
3/31/05

  

Company
Debt/Eq.

Ratio
3/31/05**

ScottishPower UK Holdings Limited (FUCO) – 1

Atlantic Quay

Glasgow G2 8SP Scotland UK

    Scottish Power plc    Holding Company    £596 million
$1,126 million		    £10 million
$19 million*		   0.07*

Scottish Power UK

plc (FUCO) – 1 Atlantic Quay

Glasgow G2 8SP Scotland UK

    Scottish Power UK
Holdings Ltd		    Holding Company    £592 million
$1,119 million		    £521 million
$985 million*		   2.18*

SP Manweb plc

England and Wales (FUCO) –

3 Prenton Way Prenton

United Kingdom CH43 3ET

    Scottish Power
Investments Limited		    Ownership & operation
of distribution network		    £554 million
$1,047 million		    £450 million
$851 million*		   0.36*

Flying Cloud Power Partners, LLC –

Iowa (EWG) – 1125 NW Couch St,

Suite 700, Portland,

Oregon 97209

    PPM Energy, Inc    44 MW wind generation
project – (UC)		    £25.2 million    £1.3 million   95% Debt
5% Equity

Klamath Energy LLC

Oregon (EWG) – 1125 NW Couch St,

Suite 700, Portland,

Oregon 97209

    PPM Energy, Inc    100 MW gas fired
peaking plant		    £28.2 million    £(0.4) million   101% Debt
(1)% Equity

Klondike Wind Power LLC –

Oregon (EWG) – 1125 NW Couch St,

Suite 700, Portland, Oregon 97209

    PPM Energy, Inc    24 MW wind
generation plant		    £8.6 million    £0.4 million   95% Debt
5% Equity

 

37

Klondike Wind Power II LLC – Oregon

(EWG) – 1125 NW Couch St,

Suite 700, Portland, Oregon 97209

    PPM Energy, Inc    75 MW wind
generation plant
in construction		    £11.9
million		    £(0) million    100% Debt

Moraine Wind LLC Minnesota

(EWG) – 1125 NW Couch St, Suite 700,

Portland, Oregon 97209

    PPM Energy, Inc    51 MW wind
generation plant		    £28
million		    £1.6 million    94% Debt
6% Equity

Phoenix Wind Power LLC California

(EWG) – 1125 NW Couch St, Suite 700,

Portland, Oregon 97209

    PPM Energy, Inc    3 MW wind
generation plant		    £1.1
million		    £0.3 million    77% Debt
23% Equity

Mountain View Power Partners III LLC

(EWG) – 1125 NW Couch St, Suite 700,

Portland, Oregon 97209

    PPM Energy Inc    22 MW wind
generation plant		    £17.8
million		    £1 million    94% Debt
6% Equity

Colorado Green Holdings LLC

(EWG) – 1125 NW Couch St, Suite 700,

Portland, Oregon 97209

    Colorado Wind
Ventures LLC		    162 MW wind
generation project		    £41.8
million		    £(1.1) million    60% Debt
40% Equity

Elk River Wind Farm LLC

(EWG) – 1125 NW Couch St, Suite 700,

Portland, Oregon 97209

    PPM Energy Inc    150 MW wind
generation project
in construction		    £(0.1)
million		    N/A    100% Debt

 

38

Trimont Wind I LLC (EWG)

1125 NW couch St, Suite 700, Portland,

Oregon 97209

    PPM Energy Inc    100 MW wind
generation construction		    N/A    N/A    N/A

Eastern Desert Power LLC (EWG)

1125 couch St, Suite 700, Portland, Oregon 97209

    PPM Energy Inc    Wind generation
project in development		    N/A    N/A    N/A

 

* Retained earnings have been calculated under UK GAAP as at the balance sheet date 31 March 2004 (to be updated upon receipt of 2005 UK GAAP data)
** The company debt/equity ratios have been calculated on the basis of excluding any short term bank and other deposits held.

 

Part I (b)

 

As of March 31, 2004, the aggregate capital invested directly or indirectly by ScottishPower plc in SPUK Holdings, SPUK or SP Manweb is set forth below. ScottishPower plc does not have aggregate capital invested in the EWGs.

 

Name of Company

    Common stock
investment
    Loans * £ - $
    Guarantees * £ -$

Scottish Power UK Holdings Limited (FUCO)

    £
$		 596 million
1,126 million		    £
$		 335.47 million
634.04 million		      N/A

Scottish Power UK plc (FUCO) Scotland

    £
$		 592 million
1,119 million		    £
$		 2,141.11 million
4,046.70 million		      N/A

SP Manweb plc England and Wales (FUCO)

    £
$		 554 million
1,047 million		      N/A    £
$		 50 million
94.5 million

 

 * at March 31, 2005

 

As of March 31, 2005, there was no debt or other financial obligations of an affiliate EWG, SPUK Holdings, SPUK or SP Manweb for which there is recourse, directly or indirectly to Scottish Power plc or another system company (other than an EWG or FUCO).

 

During the reporting period there were no transfers of assets from any system company (other that an EWG or FUCO) to an affiliate EWG, SPUK Holdings, SPUK or SP Manweb.

 

39

Part 1(c)

 

The ratio of debt to common equity for the affiliate EWGs, SPUK Holdings, SPUK and SP Manweb is set forth below.

 

Name of Company

    DEBT
   Equity
   Ratio of debt
to equity
   

Retained

Earnings

ScottishPower UK Holdings Limited

    £44 million
$83 million*		   £606 million
$1,145 million*		   0.07    £10 million
$19 million**

Scottish Power UK plc

    £3,309 million
$6,254 million*		   £1,519
million
$2,871 million*		   2.18    £521 million
$985 million**

SP Manweb plc

    £184 million
$348 million*		   £514 million
$971
million*		   0.36    £450
million
$851 million**

Flying Cloud Power Partners, LLC

    £23.9 million   £1.3 million   95% Debt
5% Equity		    £1.3 million

Klamath Energy LLC

    £28.6 million   £(0.4) million   101% Debt
(1)% Equity		    £(0.4) million

Klondike Wind Power LLC

    £8.2 million   £0.4 million   95% Debt
5% Equity		    £0.4 million

Moraine Wind LLC

    £26.5 million   £1.6 million   94% Debt
6% Equity		    £1.6 million

Phoenix Wind Power LLC

    £0.9 million   £0.3 million   77% Debt
23% Equity		    £0.3 million

Klondike Wind Power II LLC

    £11.9 million   £0 million   100% Debt    £0 million

Mountain View Power Partner III LLC

    £16.8 million   £1 million   94% Debt
6% Equity		    £1 million

Colorado Green Holdings LLC

    £64 million   £41.8 million   60% Debt
40% Equity		    £41.8 million

Elk River Wind Farm LLC

    £0.1 million   £0 million   100% Debt    £0 million

Trimont Wind I LLC

    N/A   N/A   N/A    N/A

Eastern Desert Power LLC

    N/A   N/A   N/A    N/A

 

* As at 31 March 2004 under UK GAAP (to be updated upon receipt of 2005 UK GAAP data)

 

** Retained earnings have been calculated under UK GAAP as at the balance sheet date 31 March 2004 (to be updated upon receipt of 2005 UK GAAP data)

 

Key terms: FUCO means Foreign Utility Company - EWG means Exempt Wholesale Generator

 

40

Part I (d) As of the end of the reporting period there was one service contract between Scottish Power UK plc and PacifiCorp.

 

Part II Organization chart showing relationship of each EWG and FUCO to other system companies.

 

FUCOs

 

ScottishPower plc

Scottish Power UK Holdings Limited

Scottish Power UK plc

ScottishPower Investments Limited

SP Manweb plc

 

EWGs

 

ScottishPower plc

ScottishPower NA 1 Ltd

ScottishPower NA 2 Ltd

PacifiCorp Holdings Inc

PPM Energy, Inc.

Eastern Desert Power LLC

Elk River Windfarm LLC

Klondike Wind Power II LLC

Phoenix Wind Power LLC

Klamath Energy LLC

Klondike Wind Power LLC

Moraine Wind LLC

Flying Cloud Power Partners LLC

Mountain View Power Partners III

Trimont Wind I LLC

PPM Colorado Wind Ventures Inc

Colorado Wind Ventures Inc

Colorado Green Holdings LLC

 

Part III State aggregate investment in EWGs and FUCOS, respectively. Also state ratio of aggregate investment to the aggregate capital investment of the Scottish Power plc in PacifiCorp. ScottishPower’s consolidated retained earnings calculated in accordance with US GAAP as of March 31, 2005 were $2,158.6 million.

 

Investment in EWGs USD $267.5 million

Investment in FUCOS USD $2,173.1 million

 

Aggregate Investment in EWGs and FUCOs - USD $2,440.6 million

 

Aggregate Capital Investment in PacifiCorp - USD $3,034.5 million

 

$2,440.6 million

——————

    =    Ratio 80.43%
     
$3,034.5 million      

 

41

ITEM 10 FINANCIAL STATEMENTS AND EXHIBITS

 

Exhibit A

 

Financial Statements incorporated herein by reference are as follows:

 

The financial statements of Scottish Power plc, Scottish Power UK Holdings Ltd, ScottishPower NA 1 Ltd, ScottishPower NA 2 Ltd, PacifiCorp Holdings Inc, PacifiCorp Int’l Group Holdings Company and PPM Energy Inc and their subsidiaries, listed under ITEM 8 of their combined Annual Report on Form 20-F for the year ended March 31, 2005 See also PacifiCorp Form 10-K and Form 20-F – SEC File No. 001-14676 (filed May 27, 2005 and June 29, 2005 respectively)

 

Consolidating financials for PacifiCorp Holdings, Inc. and PPM Energy, Inc. and subsidiaries filed under confidential treatment. Cash flows to be filed by amendment under confidential treatment.

 

Exhibit B

 

Articles of organization and bylaws for each subsidiary filed on Form SE. See also Exhibit B on Form U5S filed August 5, 2004.

 

Exhibit C

 

Incorporated by reference to form 6-K lodged with the SEC on March 21, 2005 file number 001-14676

 

Exhibit D

 

D-1 Tax Allocation Agreement filed on Form SE

D-2 Summary of Indebtedness and Tax Worksheets (to be filed by amendment upon finalization of PHI federal income tax returns)

 

Exhibit E

 

Filed on form SE.

 

Exhibit F

 

Financial Statements – See also Form 10-K and Form 20-F – SEC File No. 001-14676 (filed May 27, 2005 and June 29, 2005)

 

Exhibit G

 

An organization chart as at March 31, 2005

 

Exhibit H

 

Financials for EWGs as at March 31, 2005 filed under confidential treatment.

 

Separate financials for FUCOs to be filed by amendment on Form SE

 

See also Form 20F – SEC File No. 001-14676 dated June 29, 2005.

 

42

SIGNATURE

 

Each undersigned system company has duly caused this annual report to be signed on its behalf by the undersigned thereunto duly authorized pursuant to the requirements of the Public Utility Holding Company Act of 1935. The signature of each undersigned company shall be deemed to relate only to matters having reference to such company or its subsidiaries.

 

ScottishPower plc

By

  

/s/ Keith Cochrane

   

Keith Cochrane

   

Group Director of Finance

 

Attest:

/s/ Donald McPherson

Donald McPherson

Assistant Secretary

 

Verification

 

The undersigned, being duly sworn, deposes and says that he has duly executed the attached annual report dated July 29, 2005, for and on behalf of ScottishPower; that he is the Group Director of Finance of such company; and that all action by stockholders, directors, and other bodies necessary to authorize deponent to execute and file such instrument has been taken. Deponent further says that he is familiar with such instrument and the contents thereof, and that the facts therein set forth are true to the best of his knowledge, information and belief.

 

/s/ Keith Cochrane

Keith Cochrane

 

Subscribed and sworn to before me

this 29th day of July, 2005

 

 

My commission expires:

 

43

Attachment 1

 

PacifiCorp Holdings, Inc. and Subsidiary Companies

— Officers and Directors as of

March 31, 2005

 

Entity

   

Principal Address

   

Directors

   

Officers

PacifiCorp Holdings, Inc.   

825 NE Multnomah

Suite 2000

Portland, Oregon 97232

   

Andrew P. Haller

Ian M. Russell

David T. Nish

James R. Stanley

Robert A. Klein

   

Ian M. Russell (President)

David T. Nish (Chief Financial Officer)

James R. Stanley (General Counsel)

Andrew P. Haller (Assistant General Counsel)

James R. Stanley (Senior Vice President)

Andrew P. Haller (Senior Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Pacific Klamath Energy, Inc.   

825 NE Multnomah

Suite 2000

Portland, Oregon 97232

   

Andrew P. Haller

Terry F. Hudgens

   

Terry F. Hudgens (President)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

 

1

PacifiCorp   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

   

Judith A. Johansen

Andrew N. MacRitchie

Michael J. Pittman

A. Richard Walje

Matthew R. Wright

Barry G. Cunningham

Ian M. Russell

Nolan E. Karras

Richard D. Peach

Andrew P. Haller

   

Judith A. Johansen (President)

Judith A. Johansen (Chief Executive Officer)

Richard D. Peach (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew N. MacRitchie (Executive Vice President)

Matthew R. Wright (Executive Vice President)

Michael J. Pittman (Senior Vice President)

A. Richard Walje (Senior Vice President)

Barry G. Cunningham (Senior Vice President)

Robert A. Klein (Senior Vice President)

Donald N. Furman (Senior Vice President)

Andrew P. Haller (Senior Vice President)

Donald (Doug) D. Larson (Vice President)

Ernest E. Wessman (Vice President)

Stan K. Watters (Senior Vice President)

Andrew P. Haller (Secretary)

Jeffery B. Erb (Assistant Secretary)

Larry O. Martin (Assistant Secretary)

Michael G. Jenkins (Assistant Secretary)

 

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Centralia Mining Company   

201 South Main

Suite 2100

Salt Lake City,

Utah 84111

   

Dee W. Jense

Robert P. King

   

Dee W. Jense (President)

Robert P. King (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Energy West Mining Company   

201 South Main

Suite 2100

Salt Lake City,

Utah 84111

   

Dee W. Jense

Robert P. King

   

Dee W. Jense (President)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Robert P. King (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

 

2

Glenrock Coal Company   

201 South Main

Suite 2100 Salt Lake City,

Utah 84111

   

Dee W. Jense

Robert P. King

   

Dee W. Jense (President)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Robert P. King (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Interwest Mining Company   

201 South Main

Suite 2100 Salt Lake City,

Utah 84111

   

Dee W. Jense

Robert P. King

   

Dee W. Jense (President)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Robert P. King (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Pacific Minerals, Inc.   

201 South Main

Suite 2100 Salt Lake City,

Utah 84111

   

Dee W. Jense

Robert P. King

   

Dee W. Jense (President)

Robert P. King (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Bridger Coal Company   

201 South Main

Suite 2100 Salt Lake City,

Utah 84111

    No Directors    No Officers
PacifiCorp Environmental Remediation Company   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

   

Ernest E. Wessman

Susan Plato (name change)

Ron L. Lowder

Michael Brooks

Erin Leritc (CH2MHill)

   

Susan Plato (President)

Charles P. Allen (Vice President)

Andrew P. Haller (Secretary)

Bruce N. Williams (Treasurer)

PacifiCorp Future Generations, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Kevin Lynch   

Kevin Lynch (President)

Andrew P. Haller (Secretary)

Jeremy D. Weinstein (Assistant Secretary)

William R. Edmonds (Assistant Secretary)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

 

3

Canopy Botanicals, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

   

Arden D. Ahnell

Dale E. Heydlauff

Jeremy D. Weinstein

Mark Meader

   

Arden D. Ahnell (President)

Dale E. Heydlauff (Executive Vice President)

Mark Meader (General Manager)

Jeremy D. Weinstein (Secretary)

Canopy Botanicals, SRL   

La Paz

La Paz, La Paz xxxxx

    No Directors    No Officers
PacifiCorp Investment Management Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Secretary)

William R. Edmonds (Assistant Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Trapper Mining Inc   

PO Box 187

Craig, Colorado 81626

    No Directors    No Officers
Scottish Power Finance (US) Inc   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

   

Richard D. Peach

Andrew P. Haller

   

Richard D. Peach (Chief Financial Officer)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Adrian Coats (Treasurer)

Bruce N. Williams (Assistant Treasurer)

Tanya S. Sacks (Assistant Treasurer)

PacifiCorp Group Holdings Company   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

   

Andrew P. Haller

Bruce N. Williams

   

Bruce N. Williams (President)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

New Energy Holdings I, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    No Directors   

Bruce N. Williams (President)

George C. Schreck (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

 

4

EnergyWorks Holdings I   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Bruce N. Williams (Chief Executive Officer)

Andrew P. Haller (Secretary)

George C. Schreck (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

New IndiaPower Company One   

New Delhi, India

New Delhi, India 49

   

George C. Schreck

Robert W. Dove

Michael C. Bailey

Suzanne H. Gujadhur

Shariff G. Hossen

   

Patricia N. Chiu (Controller)

Robert W. Dove (Vice President)

Peter J. Arnone (Vice President)

Marcia B. Burkey (Vice President)

Craig N. Longfield (Vice President)

George C. Schreck (Vice President)

Mutual Trust Management (Mauritius) (Secretary)

Michael C. Bailey (Assistant Secretary)

Marcia B. Burkey (Treasurer)

Peter J. Arnone (Assistant Treasurer)

New IndiaPower Company Two   

New Delhi, India

New Delhi, India 49

   

George C. Schreck

 

Robert W. Dove

Michael C. Bailey

Suzanne H. Gujadhur

Shariff G. Hossen

   

Patricia N. Chiu (Controller)

Robert W. Dove (Vice President)

Peter J. Arnone (Vice President)

Marcia B. Burkey (Vice President)

Craig N. Longfield (Vice President)

George C. Schreck (Vice President)

Mutual Trust Management (Mauritius) (Secretary)

Michael C. Bailey (Assistant Secretary)

Marcia B. Burkey (Treasurer)

Peter J. Arnone (Assistant Treasurer)

PacifiCorp Trans, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Willaims, President

Jon Michael Luce, Vice President

Andrew P. Haller, Secretary

Larry O. Martin, Assistant Secretary

Bruce N. Williams, Treasurer

Tanya S. Sacks, Assistant Treasurer

 

5

PACE Group, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

   

Jeffery B. Erb

Bruce N. Williams

   

Bruce N. Williams (President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

PacifiCorp Development Company   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb, Assistant Secretary

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

PacifiCorp Energy Ventures, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

George C. Schreck (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Nth Power Management, LP   

818 West Seventh Street

Los Angeles,

California 90017

    No Directors    No Officers
PacifiCorp Financial Services, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Birmingham Syn Fuel I, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Jon Michael Luce (Vice President)

Andrew P. Haller (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

 

6

Leblon Sales Corporation   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

   

Jeffery B. Erb

Bruce N. Williams

Jon Michael Luce

Diane Vucenich

Avril G. Harvey

   

Bruce N. Williams (President)

Jon Michael Luce (Vice President)

Larry O. Martin (Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Pacific Development (Property), Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Pacific Harbor Capital, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Jon Michael Luce (Vice President)

Andrew P. Haller (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

PFI International, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

   

Bruce N. Williams

Jon Michael Luce

Sinforoso M. Tolentino

   

Bruce N. Williams (President)

Jon Michael Luce (Vice President)

Sinforoso M. Tolentino (Secretary)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

PHC Properties Corporation   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

 

7

PCC Holdings, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Jon Michael Luce (Vice President)

Andrew P. Haller (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Hillsborough Leasing Services, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

PacifiCorp International Group

Holdings Company

   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb, Assistant Secretary

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

PacifiCorp Hazelwood Pty Ltd.   

40 Market Street

Melbourne, Victoria 8001

    No Directors    No Officers
Hazelwood Australia, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Hazelwood Ventures, Inc.   

825 NE Multnomah

Suite 2000 Portland,

Oregon 97232

    Bruce N. Williams   

Bruce N. Williams (President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Hazelwood Finance LP   

40 Market Street

Melbourne, Victoria 8001

    No Directors    No Officers

 

8

PPM Energy, Inc.   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

   

Andrew P. Haller

Ian M. Russell

Terry F. Hudgens

David T. Nish

Henry H. Hewitt

   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

I. M. Kerr (Vice President)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Julian Brown (Vice President)

Ralph B. Currey (Vice President)

Peter C. vanAlderwerelt (Vice President)

Matthew Morrow (Vice President)

Donald J. Winslow (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Paul Kaufman (Assistant Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Atlantic Renewable Energy Corporation   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    Terry F. Hudgens   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Paul Kaufman (Assistant Secretary

Benjamin W. Lackey (Assistant Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Bishop Wind Farm LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    Same as above
Cassleman Windpower LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    Same as above
Chestnut Ridge Windpower LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    Same as above
West Virginia Windpower LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    Same as above
Atlantic Renewable Projects LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    Same as above

 

9

Flat Rock Windpower II LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    Same as above
Flat Rock Windpower LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    Same as above
Eastern Desert Power LLC   

1129 NW Couch,

Suite 700 Portland,

OR 97209

    No Directors    Same as above
Elk River Windfarm LLC   

1129 NW Couch,

Suite 700 Portland,

OR 97209

    No Directors    Same as above
Klondike Wind Power II LLC   

1129 NW Couch,

Suite 700 Portland,

OR 97209

    No Directors   

Ian M. Russell (Chairman)

Terry. F Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I.M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Klondike Wind Power III LLC   

1129 NW Couch,

Suite 700 Portland,

OR 97209

    No Directors    Same as above
Leaning Juniper Wind Power LLC   

1129 NW Couch,

Suite 700 Portland,

OR 97209

    No Directors    Same as above
Phoenix Wind Power LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    Peter C. vanAlderwerelt (Vice President)
Klamath Energy LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

Andrew P. Haller (Senior Vice President,

General Counsel and Secretary)

Matthew R. Wright (Senior Vice President)

Matthew Morrow (Vice President)

Peter C. vanAlderwerelt (Vice President)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Klamath Generation LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

Andrew P. Haller (Senior Vice President,

General Counsel and Secretary)

Matthew R. Wright (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

 

10

              

Allan E. Query (Vice President)

Matthew Morrow (Vice President)

Larry O. Martin (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

West Valley Leasing Company, LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

Klondike Wind Power LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Matthew Morrow (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Moraine Wind LLC   

1125 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Matthew Morrow (Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Moraine Wind II LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

 

11

Heartland Wind LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Flying Cloud Power Partners, LLC   

650 NE Holladay,

Suite 700 Portland,

Oregon 97209

    No Directors   

Ian M. Russell (Chairman)

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (Senior Vice President,

General Counsel and Secretary)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer

Pacific Wind Development LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Mountain View Power Partners III LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

 

12

              

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer

Trimont Wind I LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Ian M. Russell (Chairman)

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Paul Kaufman (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Scenic Vista Wind Power, LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Paul Kaufman (Assistant Secretary

Benjamin W. Lackey (Assistant Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer

 

13

PPM Colorado Wind Ventures, Inc.   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Peter C. vanAlderwerelt (Vice President)

Allan E. Query (Vice President)

Andrew P. Haller (Secretary)

Paul Kaufman (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Colorado Wind Ventures, LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Cathy Syme (Vice President)

Allan E. Query (Vice President)

Scott Reinhardt (Vice President, Operations)

I. M. Kerr (Vice President, Finance)

Colorado Green Holdings, LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors     
Enstor, Inc.   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

   

Andrew P. Haller

Terry F. Hudgens

Matthew Morrow

Peter C. vanAlderwerelt

   

Terry F. Hudgens (Chairman)

Matthew Morrow (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Donald J. Winslow (Vice President)

Peter C. vanAlderwerelt (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Houston Hub Storage and Transportation LP   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    No officers
Katy Storage & Transportation LP   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    No officers
Waha Storage & Tranportation LP   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    No officers
City Gate LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    No officers

 

14

Columbia Gas Storage LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    No officers
Delta Gas Storage LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors    No officers
Enstor Louisiana LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Matthew K. Morrow (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer

Brentwood Gas Storage LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Terry F. Hudgens (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Matthew Morrow (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

 

15

Enstor Operating Company, LLC   

1129 NW Couch,

Suite 700 Portland,

Oregon 97209

    No Directors   

Matthew Morrow (President)

Terry F. Hudgens (Chief Executive Officer)

I. M. Kerr (Chief Financial Officer)

Andrew P. Haller (General Counsel)

Andrew P. Haller (Senior Vice President)

Ben Moore (Vice President)

Donald J. Winslow (Vice President)

Andrew P. Haller (Secretary)

Larry O. Martin (Assistant Secretary)

Jeffery B. Erb (Assistant Secretary)

Bruce N. Williams (Treasurer)

Tanya S. Sacks (Assistant Treasurer)

Ben Moore (Director of Business Development)

Patrick DeVille (Director of Marketing)

 

16

ITEM 6 – OFFICERS AND DIRECTORS

 

Entity

   

Principal Address

   

Directors

   

Officers

Scottish Power plc    1 Atlantic Quay, Glasgow G2 8SP   

Vicky Bailey – Non-Executive Director

Euan Baird – Non-Executive Director

Charles A Berry – Executive Director

Donald H Brydon – Non-Executive Director

Philip J Carroll jnr –

Non-Executive Director

Judith A Johansen – Executive Director

Nolan E Karras – Non-Executive Director

Simon J Lowth – Director, Corporate

Strategy & Development

Charles Miller Smith - Chairman

David T Nish – Finance Director

Nicholas C Rose – Non-Executive Director

Ian M Russell – Chief Executive

Nancy Wilgenbusch –

Non-Executive Director

   

Dominic Fry – Group Director,

Corporate Communications

Terry Hudgens – CEO, PPM

Ronnie E Mercer – Executive VP Operations - PacifiCorp

Andrew R Mitchell – Company Secretary

Mike Pittman – Group Director,

Human Resources

R James Stanley – Group Director, Commercial & Legal

ScotPower Limited    1 Atlantic Quay, Glasgow, G2 8SP   

R James Stanley - Director

David T Nish - Director

    Donald J McPherson – Company Secretary

 

17

Entity

   

Principal Address

   

Directors

   

Officers

Scottish Power

Finance (Jersey) Ltd

   

22 Grenville Street, St Helier

Jersey JE4 8PX

   

Adrian J M Coats – Director

David T Nish - Director

   

Mourant & Co Secretaries

Ltd – Company Secretary

SP Finance    1 Atlantic Quay, Glasgow G2 8SP   

Adrian J Coats - Director

David T Nish - Director

Ian M Russell - Director

    Andrew R Mitchell – Company Secretary
SP Finance 2 Limited    1 Atlantic Quay, Glasgow, G2 8SP   

David T Nish - Director

R James Stanley - Director

    Donald J McPherson – Company Secretary
PacifiCorp UK Limited    1 Atlantic Quay, Glasgow, G2 8SP   

David T Nish - Director

R James Stanley - Director

    Donald J McPherson – Company Secretary

ScottishPower Overseas

Holdings Limited

    1 Atlantic Quay, Glasgow, G2 8SP   

David T Nish - Director

R James Stanley - Director

    Donald J McPherson – Company Secretary

PacifiCorp Energy

Canada Limited

   

4300 Bankers Hall West

888 3rd Street SW, Calgary, Alberta T2P 5C5

   

G. Frederick Erickson - Director

Matthew K Morrow - Director

    Andrew P Haller – Company Secretary
SP Finance 4 Limited    1 Atlantic Quay, Glasgow, G2 8SP   

David T Nish - Director

R James Stanley - Director

    Donald J McPherson – Company Secretary
SP Finance 5 Limited    1 Atlantic Quay, Glasgow, G2 8SP   

David T Nish – Director

R James Stanley - Director

    Donald J McPherson – Company Secretary

 

18

Entity

   

Principal Address

   

Directors

   

Officers

ScottishPower Finance

V Limited

    P O Box 309GT, Ugland House, South Church Street, George Town. Grand Cayman, Cayman Islands   

David T Nish - Director

R James Stanley - Director

     
Scottish Power UK Holdings Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

Ian M Russell - Director

R James Stanley - Director

    Andrew R Mitchell – Company Secretary
Coldham Windfarm Ltd    1 Atlantic Quay, Glasgow G2 8SP   

John Heasley - Director

Graham Ramsbottom - Director

Susan M Reilly - Director

Chris M Stevens - Director

    Donald J McPherson – Company Secretary
ScottishPower (DCL) Ltd    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

Alan A Bryce - Director

John A Campbell - Director

David N Morrison - Director

    Donald J McPherson – Company Secretary
Damhead Creek Finance Ltd    P O Box 309GT, Ugland House, South Church Street, George Town, Grand Cayman Cayman Islands    R James Stanley - Director     
ScottishPower (DCOL) Ltd    1 Atlantic Quay, Glasgow G2 8SP   

Charles A Berry - Director

Alan A Bryce - Director

John A Campbell - Director

David N Morrison - Director

    Donald J McPherson – Company Secretary

 

19

Entity

   

Principal Address

   

Directors

   

Officers

ScottishPower Energy Management (Agency) Limited    1 Atlantic Quay, Glasgow, G2 8SP   

John A Campbell - Director

Susan M Reilly - Director

Heather Chalmers White - Director

   

Donald J McPherson –

Company Secretary

ScottishPower Energy Management Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

John A Campbell - Director

Susan M Reilly - Director

   

Donald J McPherson –

Company Secretary

Holford Gas Storage Limited    1 Atlantic Quay, Glasgow G2 8SP   

Charles A Berry - Director

John A Campbell - Director

Susan M Reilly - Director

   

Donald J McPherson –

Company Secretary

Scottish Power Intermediate Limited    1 Atlantic Quay, Glasgow G2 8SP   

Susan M Reilly - Director

R James Stanley - Director

   

Donald J McPherson –

Company Secretary

Scottish Power UK plc    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

Ian M Russell - Director

R James Stanley - Director

   

Andrew R Mitchell –

Company Secretary

Aspen 1 Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

   

Donald J McPherson –

Company Secretary

Caledonian Gas Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

   

Donald McPherson –

Company Secretary

 

20

Entity

   

Principal Address

   

Directors

   

Officers

ScottishPower Group Money Purchase Pension Scheme Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Stephen W Dunn - Director

Andrew R Mitchell - Director

   

Paul Mulhern –

Company Secretary

ScottishPower Inc    1 Atlantic Quay, Glasgow, G2 8SP    Ian M Russell - Director     
Manweb Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

   

Donald J McPherson –

Company Secretary

Roboscot (38) Limited    42 St. Andrew Square, Edinburgh EH2 2YE   

Christopher Morson - Director

R James Stanley - Director

Finlay F Williamson - Director

   

Shirley M MacGillivray –

Company Secretary

SaBRe Water Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Scottish Power Trustees Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

J Stewart Wood - Director

    Andrew R Mitchell – Company Secretary
Scottish Utility Services Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Camjar plc    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Spotlight Trading Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary

 

21

Entity

   

Principal Address

   

Directors

   

Officers

Telephone Information Services plc    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
ScottishPower Energy Retail Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

D William MacDiarmid - Director

David L Wark - Director

    Donald J McPherson – Company Secretary
Gemserv Limited   

7th Floor Centurion House, 24

Monument Street, London EC3R 6AJ

   

Paul B P Tonkinson - Director

Nigel G Bromley - Director

Geoff Huckerby - Director

John N Sykes - Director

   

Anzo G Frances –

Company Secretary

Manweb Energy Consultants Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

D William MacDiarmid - Director

    Donald J McPherson – Company Secretary
N.E.S.T.MAKERS Limited    1 Atlantic Quay, Glasgow, G2 8SP   

John W Clough - Director

Jack Harrison Director

Raymond Jack - Director

Joseph A Johnson - Director

Donald W MacDiarmid - Director

David L Wark - Director

   

David G Linton –

Company Secretary

ScottishPower Generation Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

Alan A Bryce - Director

David N Morrison - Director

    Donald J McPherson – Company Secretary
Beaufort Energy Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Alan A Bryce - Director

Susan M Reilly - Director

    Donald J McPherson – Company Secretary

 

22

Entity

   

Principal Address

   

Directors

   

Officers

CRE Energy Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Alan A Bryce - Director

Susan M Reilly - Director

    Donald J McPherson – Company Secretary
Wind Resources Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Samuel R Anderson - Director

David N Morrison - Director

    Sally A Jones – Company Secretary
Carland Cross Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Samuel R Anderson – Director

Stephen J T Balint – Director

Dominic Keating – Director

Tariq Masood - Director

David N Morrison - Director

    Sally A Jones – Company Secretary
Coal Clough Limited    Avonbank, Feeder Road, Bristol BS2 OTB   

Samuel R J Anderson – Director

Stephen J T Balint – Director

Dominic P Keating – Director

Tariq Masood – Director

David N Morrison - Director

     
Celtpower Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Alan A Bryce - Director

Simon Christian - Director

John Heasley - Director

John A Matthew - Director

Minuro Saito - Director

Motoyasu Sakamoto - Director

    David Rhodes – Company Secretary
Emerald Power Generation Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Alan A Bryce - Director

David N Morrison - Director

    Donald J McPherson – Company Secretary

 

23

Entity

   

Principal Address

   

Directors

   

Officers

Manweb Generation Holdings Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Dylan Hughes - Director

Susan M Reilly - Director

    Donald J McPherson – Company Secretary
Manweb Generation (Winnington) Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Winnington Combined Heat & Power Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Stephen G Bentley - Director

Donald J McPherson - Director

Valerie L Kohler - Director

    Donald J McPherson – Company Secretary
Winnington Combined Heat & Power Developments Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Stephen G Bentley - Director

Donald J McPherson - Director

Valerie L Kohler - Director

    Donald J McPherson – Company Secretary
Winnington Combined Heat & Power Operations Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Stephen G Bentley – Director

Donald J McPherson - Director

Valerie L Kohler - Director

    Donald J McPherson – Company Secretary
Scotash Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles Law - Director

Nigel L Cooke - Director

Ronald G Hunter - Director

    LaFarge Secretaries (UK) Limited – Company Secretary
ScottishPower (SOCL) Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Alan A Bryce - Director

Hugh O Finlay - Director

David N Morrison - Director

    Charles D MacKendrick – Company Secretary
SMW Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Alan A Bryce - Director

David N Morrison - Director

R James Stanley - Director

    Donald J McPherson – Company Secretary
ScottishPower (SCPL) Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Alan A Bryce

John A Campbell - Director

David N Morrison - Director

    Charles D MacKendrick – Company Secretary

 

24

Entity

   

Principal Address

   

Directors

   

Officers

ScottishPower Share Scheme Trustees Ltd    1 Atlantic Quay, Glasgow G2 8SP   

Alan A Bryce - Director

Sheelagh J Duffield - Director

Norman McNeil - Director

David Simpson - Director

Norman McNeil - Director

    Alan W McCulloch – Company Secretary
ScottishPower Sharesave Trustees Ltd    1 Atlantic Quay, Glasgow G 2 8SP   

Andrew J Blain - Director

Adrian J M Coats - Director

Charles S MacDonald - Director

Alan W McCulloch - Director

Norman McNeil - Director

David Simpson - Director

    Alan W McCulloch – Company Secretary
Selectusonline Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Douglas Bridson - Director

Kieran Brocklebank - Director

Keith Budinger - Director

Phillip E Connor - Director

Ian J McLeod - Director

Padraig McManus - Director

Carol A Morgan - Director

Marie Sinott - Director

    UU (C.S.) Limited – Company Secretary
SP Dataserve Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

D William MacDiarmid - Director

David L Wark - Director

    Donald J McPherson – Company Secretary

 

25

Entity

   

Principal Address

   

Directors

   

Officers

SP Distribution Limited    1 Atlantic Quay, Glasgow, G2 8SP   

David T Nish – Director

James Sutherland - Director

James F Wilson – Director

    Alan McCulloch – Company Secretary
Scottish Electricity Settlements Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

Alan A Bryce - Director

David Sigsworth - Director

    Ian M Manson – Company Secretary
SP Gas Limited    1 Atlantic Quay, Glasgow, G2 8SP   

David T Nish - Director

David Rutherford - Director

Stephen A Wood - Director

    Alan McCulloch – Company Secretary
SP Power Systems Limited    1 Atlantic Quay, Glasgow, G2 8SP   

David J Hill - Director

David T Nish - Director

David Rutherford - Director

    Alan W McCulloch – Company Secretary
Core Utility Solutions Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Neil D Cocker - Director

William G McClymont - Director

Dr. Eric J Murray - Director

Phillip Price - Director

Alan R Thompson - Director

Stephen A Wood - Director

    Alan W McCulloch – Company Secretary
SP Transmission Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Robert F MacLaren - Director

Ronnie E Mercer - Director

James F Wilson - Director

    Andrew R Mitchell – Company Secretary

 

26

Entity

   

Principal Address

   

Directors

   

Officers

GBSO Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Leslie H Burns - Director

Robert F MacLaren - Director

William D Wright - Director

    Alan W McCulloch – Company Secretary
Teledata (Holdings) Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Teledata (Outsourcing) Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
The CallCentre Service Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Teledata Scotland Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
The Information Service Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Clubcall Telephone Services Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry- Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Clubline Services Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Telephone International Media Holdings Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary

 

27

Entity

   

Principal Address

   

Directors

   

Officers

Copperteam Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

   

Donald J McPherson –

Company Secretary

Telephone International Media Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

   

Donald J McPherson –

Company Secretary

TIM Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

   

Donald J McPherson –

Company Secretary

ScottishPower Investments Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

Ian M Russell - Director

   

Andrew R Mitchell –

Company Secretary

Caledonian Communications Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

   

Donald J McPherson –

Company Secretary

Dornoch International Insurance Limited    38/39 Fitzwilliam Square, Dublin 2 Ireland   

Adrian J Coats – Director

Anne Finn – Director

Robert Klein – Director

Maurice Tempany – Director

Eamon Walsh - Director

   

A & L Goodbody –

Company Secretary

Genscot Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

Ian M Russell - Director

   

Andrew R Mitchell –

Company Secretary

 

28

Entity

   

Principal Address

   

Directors

   

Officers

Manweb Holdings Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

Ian M Russell - Director

    Andrew R Mitchell – Company Secretary

Manweb Contracting

Services Limited

    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Manweb Gas Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary

Manweb Pensions

Trustee Limited

    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Paul Mulhern – Company Secretary
Mawlaw 526 Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
SSEB Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Scotsgrid Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
ScottishPower Finance Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Scotspower Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary

 

29

Entity

   

Principal Address

   

Directors

   

Officers

ScottishPower Insurance Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Claire M Christian - Director

Adrian J Coats - Director

John D Evans - Director

Michael Sheehan – Director

Gareth Walker - Director

    Management Services Isle of Man Limited – Company Secretary
ScottishPower Leasing Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Adrian J Coats – Director

Ian M Russell – Director

    Donald J McPherson – Director
ScottishPower Securities Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
ScottishPower Telecommunications Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Demon Internet Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Cityscape Global Media Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Cityscape Internet Services Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Cityscape Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary

 

30

Entity

   

Principal Address

   

Directors

   

Officers

Demon Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Dispatch Publishing Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Locomotive Software Group Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Locomotive Software Developments Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Turnpike 1996 Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Turnpike Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
The IP Systems Operation Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Lancastrian Holdings Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Megafone (UK) Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary

 

31

Entity

   

Principal Address

   

Directors

   

Officers

Psychic Companions Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
SPPT Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Watermark Games Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Charles A Berry - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
SP Manweb plc    1 Atlantic Quay, Glasgow, G2 8SP   

David T Nish - Director

James Sutherland - Director

James F Wilson - Director

    Alan McCulloch – Company Secretary
Manweb Nominees Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Manweb Services Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Donald J McPherson – Company Secretary
Manweb Share Scheme Trustees Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

    Alan W McCulloch – Company Secretary

 

32

Entity

   

Principal Address

   

Directors

   

Officers

St.Clements Services Ltd    4-6 Church Walk, Daventry, Northamptonshire NN11 4BL   

Robin D Edmunds - Director

James Anderson - Director

Katherine M Bergin - Director

Peter R Brown - Director

John Gilbert - Director

Harish Mistry - Director

Graham R Ovenden - Director

John M Squire - Director

    Robin D Edmunds – Company Secretary
Electralink Ltd   

40 Grosvenor Place

Victoria

London

SW1X 7EN

   

Michael J Boxall - Director

Robert I Higson - Director

Kevin D Lee - Director

John Winkle - Director

Anthony Clive Woods - Director

Susan E Burrows - Director

Gareth D Pearson - Director

    Robert I Higson – Company Secretary
ScottishPower NA1 Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

Ian M Russell - Director

R James Stanley - Director

    Andrew R Mitchell – Company Secretary
ScottishPower NA2 Limited    1 Atlantic Quay, Glasgow, G2 8SP   

Andrew R Mitchell - Director

David T Nish - Director

Ian M Russell - Director

R James Stanley - Director

    Andrew R Mitchell – Company Secretary

 

33

Attachment 2

 

ITEM 11. EXECUTIVE COMPENSATION

 

PACIFICORP BOARD OF DIRECTORS REPORT ON EXECUTIVE COMPENSATION

 

Introduction

 

The PacifiCorp Board of Directors submits this report on executive compensation, which outlines the compensation provided to PacifiCorp’s executive officers. The Remuneration Committee of the ScottishPower Board of Directors, assisted by its outside advisors, has the responsibility to approve compensation levels and executive compensation plans for the PacifiCorp Chief Executive Officer and the ScottishPower Human Resources Director, who also serves as a PacifiCorp executive officer, and to review compensation for other executive officers and senior management of PacifiCorp. The Remuneration Committee is composed entirely of independent, non-executive directors. With the exception of any compensation requiring review by the Remuneration Committee, the Compensation Committee of the PacifiCorp Board of Directors, consisting of the ScottishPower Chief Executive Officer, the PacifiCorp Chief Executive Officer and the ScottishPower Human Resources Director, has responsibility for approving compensation levels and executive compensation plans for executive officers of PacifiCorp. The Remuneration Committee must approve any stock-based compensation to PacifiCorp executive officers, all of which is in the form of ScottishPower equity. The following describes the components of PacifiCorp’s executive compensation program and the basis upon which recommendations and determinations were made for the year ended March 31, 2005.

 

Compensation Philosophy

 

PacifiCorp’s philosophy is that executive compensation, including that of its Chief Executive Officer, should be linked closely to corporate and operational performance, customer service and increases in shareholder value. PacifiCorp’s executive compensation program has the following objectives:

 

  (i) provide competitive total compensation that enables PacifiCorp to attract and retain key executives;

 

  (ii) provide variable compensation opportunities that are linked to PacifiCorp, operational area, and individual performance; and

 

  (iii) establish an appropriate balance between incentives focused on short-term objectives and those encouraging sustained performance improvements and increases in shareholder value.

 

Qualifying compensation for deductibility under Internal Revenue Code Section 162(m) is one of the factors the PacifiCorp Compensation Committee considers in designing PacifiCorp’s incentive compensation arrangements for executive officers. Internal Revenue Code Section 162(m) limits to $1.0 million the annual deduction by a publicly held corporation of compensation paid to any executive officer, except with respect to certain forms of incentive compensation that qualify for exclusion. Although it is the intent to design and administer compensation programs that maximize deductibility, the Remuneration Committee and the Compensation Committee view the objectives outlined above as more important than compliance with the technical requirements necessary to exclude compensation from the deductibility limit of Internal Revenue Code Section 162(m). Nevertheless, the Remuneration Committee and the Compensation Committee believe that nearly all compensation paid to the executive officers for services rendered in the year ended March 31, 2005, is fully deductible.

 

Compensation Program Components

 

During the year ended March 31, 2005, the compensation programs were focused on market-based comparisons on the relevant industry for each executive officer. The electric utility industry was utilized as the exclusive basis for market comparison for positions with a principal focus on electric operations. For positions with a corporate-wide focus, the general industry and electric utility industry were used for market comparison. In all cases, compensation is targeted at market median levels, with an assumption that total compensation greater than market median, in any specific time period, anticipates that PacifiCorp and industry performance exceeds the median performance of peer companies.

 

1

PacifiCorp’s executive compensation programs have three principal elements: base salaries, annual incentive compensation and long-term incentive compensation, as described below.

 

Base Salaries

 

Base salaries and target incentive amounts are reviewed for adjustment at least annually based upon competitive pay levels, individual performance and potential, and changes in duties and responsibilities. Base salary and the incentive target are set at a level such that total annual compensation for satisfactory performance would approximate the midpoint of pay levels in the comparison group used to develop competitive data. In the year ended March 31, 2005, the base salary of each executive officer was increased, based on market analysis, to reflect competitive market changes, individual performance and changes in the responsibilities of some officers.

 

Annual Incentive Compensation

 

All PacifiCorp executive officers, including those listed in the Summary Compensation Table, participated in PacifiCorp’s Annual Incentive Plan (the “AIP”). Performance goals were based on PacifiCorp performance, operational performance and individual performance, and may include ScottishPower performance based on the level, influence and impact of the officer.

 

Long-Term Incentive Compensation

 

Historically, the PacifiCorp Board of Directors annually reviewed and approved grants of restricted stock and stock options under the PSIP until the PSIP was assumed by ScottishPower in connection with its acquisition of PacifiCorp in 1999. On November 29, 2001, the PSIP expired. Restricted stock and stock option awards made under the PSIP on or before April 24, 2001, relate to ScottishPower American Depository Shares or Ordinary Shares (“Ordinary Shares”) and will continue to remain outstanding until such time as they vest, are exercised or expire.

 

Restricted stock awards under the PSIP are subject to terms, conditions and restrictions consistent with the PSIP and the best interests of the shareholders. In general, restricted stock awards vest over a four-year period from the date of grant, subject to compliance with the stock ownership and other terms of the grant. The restrictions include stock transfer restrictions and forfeiture provisions designed to facilitate the participants’ achievement of specified stock ownership goals. Participants are also required to invest their own personal resources in ScottishPower American Depository Shares or Ordinary Shares in order to meet the vesting requirements associated with these grants.

 

In April 2004, the Remuneration Committee approved grants of stock options and performance share awards under ScottishPower’s Executive Share Option Plan 2001 (the “ExSOP”) and the Long-Term Incentive Plan (the “LTIP”), respectively, for a select group of executive officers and other senior managers. ExSOP and performance share grants were awarded to PacifiCorp senior managers in May 2004. See below for the LTIP awards. The May 2004 grants were the last stock options awarded under the ExSOP. Stock options granted under the ExSOP on or before May 27, 2004, will continue to remain outstanding until such time as they are exercised or expire.

 

All stock options awarded to executive officers and senior management of PacifiCorp in the years ended March 31, 2005, 2004 and 2003 are non-statutory, non-discounted options with a three-year vesting requirement and a 10-year term from the date of the grant. The stock options awarded during the year ended March 31, 2003, included two separate grants. The first was a standard grant of options, each of which has a three-year vesting schedule starting on the first anniversary of the grant date, and the second was a onetime enhanced grant of options, each of which vests three years after the grant date based on performance.

 

In May 2004, the Remuneration Committee approved a new program to replace the ExSOP, called the Deferred Share Program, which is part of the AIP for executive officers and senior management. Eligible employees will receive an increase to their AIP maximum target incentive payment, with the increase paid in ScottishPower American Depository Shares. The Deferred Share Program is effective beginning with the year ended March 31, 2006.

 

2

The LTIP provides for awards of performance shares that link the rewards closely between management and shareholders and focus on long-term corporate performance. The awards will vest only if the Remuneration Committee is satisfied that certain threshold customer service and financial performance measures are achieved. The number of shares that actually vest depends upon ScottishPower’s comparative Total Shareholder Return performance over a three-year performance period. Vested shares are released to participants only after the conclusion of the performance period.

 

The PacifiCorp Board of Directors report on executive compensation detailed above has been submitted by all the members of the PacifiCorp Board of Directors, as listed below:

 

•   Ian M. Russell, Chairman

 

•   Judith A. Johansen

 

•   Barry G. Cunningham

 

•   Nolan E. Karras

 

•   Andrew N. MacRitchie

 

•   Michael J. Pittman

 

•   A. Richard Walje

 

•   Matthew R. Wright

 

•   Richard D. Peach

 

•   Andrew P. Haller

 

Executive Compensation

 

The following table sets forth information concerning compensation for services in all capacities to PacifiCorp for the years ended March 31, 2005, 2004, and 2003 of the Chief Executive Officer of PacifiCorp and the next four other most highly compensated executive officers of PacifiCorp who were serving as executive officers at the end of the last completed fiscal year.

 

Summary Compensation Table

 

    

Year

        

All Other

Compensation

(d)

    Long-Term Compensation
      Annual Compensation (a)
      

Restricted

Stock

Awards (e)

   

Securities

Underlying

Options

   

LTIP

Payout

(f)

   

ScottishPower

Performance

Shares (g)

Name and Principal Position

       Salary
    Bonus (c)
               

Judith A. Johansen

President and Chief

Executive Officer

    2005
2004
2003		    $
 
 		 743,750
589,394
492,444		    $
 
 		 437,500
337,500
149,767		    $
 
 		 23,311
22,883
21,170		    $
 
 		 —  
—  
—  		    52,228
61,475
61,825		    $
 
 		 —  
—  
—  		    19,916
12,458
9,199

Michael J. Pittman

Senior Vice President

    2005
2004
2003		     
 
 		 323,750
313,125
300,000		     
 
 		 189,000
187,500
47,057		     
 
 		 20,329
20,097
18,860		     
 
 		 —  
—  
—  		    33,948
38,729
50,954		     
 
 		 —  
—  
—  		    6,904
7,849
7,581

Andrew P. Haller

Senior Vice President,

General Counsel and

Corporate Secretary

    2005
2004
2003		     
 
 		 334,480
327,996
310,930		     
 
 		 167,137
190,109
132,020		     
 
 		 20,515
20,165
21,037		     
 
 		 —  
—  
—  		    11,667
13,530
19,165		     
 
 		 —  
—  
23,069		    4,746
5,484
5,069

A. Richard Walje

Executive Vice President

    2005
2004
2003		     
 
 		 317,307
299,544
277,604		     
 
 		 158,108
127,557
95,550		     
 
 		 20,270
83,173
19,278		     
 
 		 —  
—  
—  		    16,613
17,751
24,840		     
 
 		 —  
—  
—  		    6,757
7,195
6,570

Matthew R. Wright (b)

Executive Vice President

    2005
2004
2003		     
 
 		 292,481
253,612
249,997		     
 
 		 141,945
127,527
56,048		     
 
 		 151,425
62,766
67,456		     
 
 		 —  
—  
—  		    15,331
10,502
11,704		     
 
 		 —  
—  
—  		    6,236
6,301
4,681

 

3

(a) May include amounts deferred pursuant to the Compensation Reduction Plan, under which key executives and directors may defer receipt of cash compensation until retirement or a preset future date. Amounts deferred are invested in ScottishPower American Depository Shares or a cash account on which interest is paid at a rate equal to the Moody’s Intermediate Corporate Bond Yield for AA-rated Public Utility Bonds.

 

(b) Salary includes foreign housing benefits paid to Mr. Wright. These amounts were $39,380 for the year ended March 31, 2004, and $53,961 for the year ended March 31, 2003.

 

(c) Amounts in this column for the year ended March 31, 2003, include a promotion bonus in the amount of $41,556 for Ms. Johansen.

 

(d) Amounts shown for the year ended March 31, 2005, include:

 

  (i) Company contributions to the PacifiCorp Employee Savings and Stock Ownership Plan (the “Savings Plan”) of $12,073 for Ms. Johansen, $10,354 for Mr. Pittman, $10,508 for Mr. Haller, $10,315 for Mr. Walje and $12,197 for Mr. Wright.

 

  (ii) Portions of premiums on term life insurance policies that PacifiCorp paid in the amounts of $2,238 for Ms. Johansen, $975 for Mr. Pittman, $1,007 for Mr. Haller, $955 for Mr. Walje and $880 for Mr. Wright. These benefits are available to all employees.

 

  (iii) Annual vehicle allowances paid to Ms. Johansen and Messrs. Pittman, Haller, Walje and Wright in the amounts of $9,000 each. The amount of annual vehicle allowance for Mr. Wright was $10,350 for the year ended March 31, 2004, and $10,800 for the year ended March 31, 2003.

 

  (iv) Relocation benefits paid to Mr. Walje of $62,849 for the year ended March 31, 2004.

 

  (v) Additional international assignment payments to Mr. Wright of $27,739 for the year ended March 31, 2005, $45,299 for the year ended March 31, 2004, and $56,656 for the year ended March 31, 2003, for cost of living and foreign service premium. Also includes international assignee localization payments to Mr. Wright of $101,609 for the year ended March 31, 2005.

 

(e) On March 31, 2005, the aggregate value of all restricted stock holdings, based on the market value of ScottishPower American Depository Shares at March 31, 2005, without giving effect to the diminution of value attributed to the restrictions on such stock, was $38,220 for Ms. Johansen, $14,352 for Mr. Pittman, $30,420 for Mr. Haller and $14,352 for Mr. Walje. The aggregate number of restricted share holdings was 1,225 for Ms. Johansen, 460 for Mr. Pittman, 975 for Mr. Haller and 460 for Mr. Walje. Regular quarterly dividends are paid on the restricted stock. Participants may defer receipt of restricted stock awards to their stock accounts under the Compensation Reduction Plan.

 

(f) Represents the dollar value of restricted stock shares awarded under the PSIP prior to PacifiCorp’s acquisition by ScottishPower that vested and were distributed to the named officer in the form of ScottishPower American Depository Shares.

 

(g) Represents the number of ScottishPower American Depository Shares contingently granted in 2005, 2004 and 2003 that can be earned under the terms of the LTIP.

 

4

Option Grants in Last Fiscal Year

 

The following table sets forth information regarding options to purchase ScottishPower American Depository Shares granted during the year ended March 31, 2005, to each named executive officer under the ExSOP. All options become exercisable for one-third of the shares covered by the option on each of the first three anniversaries of the grant date.

 

     Individual Grants

Name

   

Number of

Securities

Underlying

Options

Granted

   

% of Total

Options

Granted to

Employees

in Fiscal

Year

    

Exercise

or Base

Price

($/Sh)

   

Expiration

Date

    Potential Realizable Value
at Assumed Annual Rates
of Stock Price
Appreciation for Option
Term
              5%
    10%

Judith A. Johansen

    52,228    6.84 %   $ 28.72    5/26/2014    $ 943,334    $ 2,390,595

Michael J. Pittman

    33,948    4.44       28.72    5/26/2014      613,164      1,553,877

Andrew P. Haller

    11,667    1.53       28.72    5/26/2014      210,728      534,025

A. Richard Walje

    16,613    2.17       28.72    5/26/2014      300,062      760,415

Matthew R. Wright

    15,331    2.01       28.72    5/26/2014      276,906      701,735

 

Aggregated Option Exercises at March 31, 2005, and Year-End Option Values

 

The following table sets forth information regarding the aggregate options exercised during the past fiscal year and the option values at the end of the fiscal year ended March 31, 2005, for each of the named executive officers. All options are for ScottishPower American Depository Shares and include options granted under the PSIP and the ExSOP.

 

Name

   

Shares

Acquired
on

Exercise

   

Value

Realized

   

Number of Securities

Underlying Unexercised
Options at

March 31, 2005

   

Value of Unexercised

In-the-Money Options at
March 31, 2005

         Exercisable
    Unexercisable
    Exercisable
    Unexercisable

Judith A. Johansen

    152,603    $ 711,077    —      124,125    $ —      $ 644,701

Michael J. Pittman

    65,385      286,932    158,088    85,245      8      454,666

Andrew P Haller

    27,703      95,713    —      31,334      —        171,720

A. Richard Walje

    44,957      207,618    126,069    42,247      —        227,241

Matthew R. Wright (a)

    —        —      3,329    37,536      —        65,636

 

(a) Certain of Mr. Wright’s options are for ScottishPower Ordinary Shares, but are presented as American Depository Shares.

 

Long-Term Incentive Plan Awards in the Last Fiscal Year

 

The following table sets forth information regarding awards made in the year ended March 31, 2005, to each named executive officer under the LTIP. Each LTIP award entitles the executive officer to acquire, at no cost, the number of ScottishPower American Depository Shares listed in the table, less any withholding for applicable taxes. An award will only vest if the Remuneration Committee is satisfied that certain performance measures related to the sustained underlying financial performance of the ScottishPower group and improvements in customer service standards are achieved over a period of three years commencing with the fiscal year preceding the date an award is made. The number of shares that vest depend upon ScottishPower’s comparative Total Shareholder Return performance over the three-year performance period. Total Shareholder Return performance is measured against a peer group of major international energy companies. No shares vest unless ScottishPower’s Total Shareholder Return performance is at

 

5

least equal to the median performance of the peer group, at which point 40% of the initial award vests. If ScottishPower’s performance is equal to or exceeds the top quartile, 100% of the shares vest. The number of shares that vest for performance between these two points is determined on a straightline basis. Participants may acquire the vested shares at any time after the third anniversary of grant.

 

    

Number of

Shares, Units

or Other

Rights

   

Performance

or Other

Period Until

Maturation

or Payout

   

Estimated Future Payouts

Under Non-Stock Price-Based Plans

Name

         

Exercise or

Threshold

Shares

   

Target

Shares (a)

   

Maximum

Shares

Judith A. Johansen

    19,916    3 years    —      7,966    19,916

Michael J. Pittman

    6,904    3 years    —      2,762    6,904

Andrew P. Haller

    4,746    3 years    —      1,898    4,746

A. Richard Walje

    6,757    3 years    —      2,703    6,757

Matthew R. Wright

    6,236    3 years    —      2,494    6,236

 

(a) Amount to vest if threshold measures and median Total Shareholder Return performance are achieved.

 

Employment Agreements

 

On September 29, 2003, Ms. Johansen and PacifiCorp executed an employment agreement providing for a base salary of $700,000 and a maximum annual incentive award of 75.0% of base salary. Under the agreement, she is eligible for participation in the LTIP, the ExSOP and the Retirement Plan referred to below, in addition to other benefit plans available for senior-level executives of PacifiCorp. The employment agreement continues until March 31, 2021, unless terminated by either party. Ms. Johansen or PacifiCorp may terminate the employment agreement at any time for any reason. However, if Ms. Johansen resigns from PacifiCorp due to a material alteration in compensation or assignment or following a company-initiated relocation, or if PacifiCorp terminates Ms. Johansen without cause, then Ms. Johansen will be entitled to one year’s base salary, car allowance and bonus (as modified pursuant to the terms of the employment agreement). Additionally, Ms. Johansen agreed to standard confidentiality, non-competition and non-solicitation terms.

 

On December 9, 2004, Mr. Pittman and PacifiCorp executed an employment agreement providing for a base salary of $325,000 and a maximum annual incentive award of 100.0% of base salary (unless otherwise modified by the Remuneration Committee). Under the agreement, he is eligible for participation in the LTIP, the ExSOP and the Retirement Plan, in addition to other benefit plans available for senior level executives of PacifiCorp. The employment agreement continues until Mr. Pittman reaches the age of 65, unless terminated by either party. Mr. Pittman or PacifiCorp may terminate the employment agreement at any time for any reason. However, if Mr. Pittman resigns from PacifiCorp due to a material alteration in compensation or assignment or following a company-initiated relocation, or if PacifiCorp terminates Mr. Pittman without cause, then Mr. Pittman will be entitled to one year’s base salary, car allowance and bonus (as modified pursuant to the terms of the employment agreement). Additionally, Mr. Pittman agreed to standard confidentiality, non-competition and non-solicitation terms.

 

Severance Arrangements

 

PacifiCorp’s Executive Severance Plan provides severance benefits to certain executive-level employees who are designated by the PacifiCorp Board of Directors, including the executive officers named in the Summary Compensation Table (other than Ms. Johansen).

 

Severance benefits are payable by PacifiCorp for voluntary terminations as a result of a certain material alterations in position or compensation that have a detrimental impact on the executive’s employment or involuntary terminations (including a PacifiCorp-initiated resignation) for reasons other than cause. Severance payments generally equal one or two times the executive’s annual cash compensation, three months of health insurance benefits and outplacement services.

 

6

The Executive Severance Plan also provides enhanced severance benefits in the event of certain terminations during the 24-month period following a qualifying change-in-control transaction. Executives designated by the PacifiCorp Board of Directors are eligible for change-in-control benefits resulting from either a PacifiCorp-initiated termination without cause or a resignation generally within two months after certain material alterations in position or compensation. If qualified for the enhanced severance benefits, an executive would receive severance pay in an amount equal to either two, two and one-half or three times the annual cash compensation of the executive, depending on the level set by the PacifiCorp Board of Directors. PacifiCorp is required to make an additional payment to compensate the executive for the effect of any excise tax. The executive would also receive continuation of subsidized health insurance from six to 24 months, depending on length of service, and outplacement services.

 

Retirement Plans

 

PacifiCorp has adopted non-contributory defined benefit retirement plans for its employees, other than employees subject to collective bargaining agreements that do not provide for coverage. Certain executive officers, including the executive officers named in the Summary Compensation Table, are also eligible to participate in PacifiCorp’s non-qualified Supplemental Executive Retirement Plan (the “SERP”). The following description assumes participation in both the Retirement Plan and the SERP. Participants receive benefits at retirement payable for life based on length of service with PacifiCorp and average pay in the 60 consecutive months of highest pay out of the last 120 months, and pay for this purpose would include salary and AIP payments reflected in the Summary Compensation Table above. Benefits are based on 50.0% of final average pay plus 1.0% of final average pay for each year that PacifiCorp meets certain performance goals set for each fiscal year by the PacifiCorp Board of Directors. The maximum benefit is 65.0% of final average pay. Participants may also elect actuarially equivalent alternative forms of benefits. Retirement benefits are reduced to reflect social security benefits as well as certain prior employer retirement benefits. Participants are entitled to receive full benefits upon retirement after age 60 with at least 15 years of service. Participants are also entitled to receive reduced benefits upon early retirement after age 55 or after age 50 with at least 15 years of service and five years of participation in the SERP.

 

The following table shows the estimated annual retirement benefit payable upon retirement at age 60 as of March 31, 2005. Amounts in the table reflect payments from the Retirement Plan and the SERP combined, prior to any offset of projected social security benefits and benefits paid from any prior employer plan.

 

Estimated Annual Pension at Retirement (a)

 

     Years of Service (b)

Final Average Pay at Retirement Date

    5
    15
    25
    30

$200,000

    $ 43,333    $ 130,000    $ 130,000    $ 130,000

  400,000

      86,667      260,000      260,000      260,000

  600,000

      130,000      390,000      390,000      390,000

  800,000

      173,333      520,000      520,000      520,000

  1,000,000

      216,667      650,000      650,000      650,000

 

(a) The benefits shown in this table assume that the individual will remain in the employ of PacifiCorp until retirement at age 60, that the Retirement Plan and the SERP will continue in their present form and that PacifiCorp achieves its performance goals under the SERP in all years.

 

(b) The number of credited years of service used to compute aggregate benefits under the Retirement Plan and the SERP are four for Ms. Johansen, four for Mr. Haller, 25 for Mr. Pittman, 19 for Mr. Walje and 17 for Mr. Wright.

 

7

Retention Agreements

 

To retain executives who would otherwise have had the right to resign for any reason between 12 and 14 months following the merger with ScottishPower and qualify for the enhanced change-in-control supplemental retirement benefits, PacifiCorp entered into retention agreements with qualifying executives (Messrs. Pittman and Walje). Those retention agreements provided for the same enhanced supplemental retirement benefits if the qualifying executives satisfied the retention criteria. Qualifying executives were required to waive their rights to unilaterally resign and receive the enhanced supplemental retirement benefits, but they are now eligible to receive these same enhancements since they have continued employment through the established retention date of December 1, 2002.

 

These retention agreements also required qualifying executives to waive any rights to executive severance benefits, which they may have otherwise claimed due to material alterations in their positions as of the date of the retention agreement. Unless there was a subsequent “involuntarily termination” or “material alteration” in position as defined in the Severance Plan, this waiver of severance benefits applied to these executives through November 28, 2004. The executives’ waiver of severance benefits was in exchange for the enhanced supplemental retirement benefits described above, retention bonuses determined individually in PacifiCorp’s discretion for each executive and special stock option awards that vested over a three-year retention period at 25.0% for each of the first two years and 50.0% in the third year.

 

As noted above, the retention agreements for Messrs. Pittman and Walje expired on November 28, 2004. The executives have satisfied the requirements of, and have received the remuneration and benefits payable under, those agreements.

 

8

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

All common shares of PacifiCorp are indirectly owned by Scottish Power plc, 1 Atlantic Quay, Glasgow, G2 8SP, Scotland. PacifiCorp has no compensation plans under which equity securities of PacifiCorp are authorized to be issued.

 

The following table sets forth certain information as of March 31, 2005, regarding the beneficial ownership of Ordinary Shares by (1) each of the executive officers named in the Summary Compensation Table under Item 11. Executive Compensation above, (2) each director of PacifiCorp as detailed under “Item 10. Directors and Executive Officers of the Registrant,” and (3) all executive officers and directors of PacifiCorp as a group. As of March 31, 2005, each of the directors and executive officers identified above and all directors and executive officers of PacifiCorp as a group owned less than 1% of the outstanding Ordinary Shares.

 

     Amount and Nature of Beneficial Ownership

Beneficial Owner

   

    Direct and    

Indirect (a)

        Options (b)    
    Total

Ian M. Russell

    133,570    498,678    632,248

Judith A. Johansen

    103,332    480,868    584,200

Michael J. Pittman

    115,238    984,704    1,099,942

Andrew P. Haller

    64,887    128,296    193,183

A. Richard Walje

    102,719    673,120    775,839

Barry G. Cunningham

    45,020    472,036    517,056

Nolan E. Karras

    42,446    —      42,446

Andrew N. MacRitchie

    14,949    99,468    114,417

Richard D. Peach

    14,582    75,237    89,819

Matthew R. Wright

    7,445    80,574    88,019

All executive officers and directors as a group (14 persons)

    748,656    4,444,765    5,193,421

 

(a) Includes beneficial ownership of (i) shares held by family members even though beneficial ownership of such shares may be disclaimed and (ii) shares held for the account of such persons pursuant to PacifiCorp’s Compensation Reduction Plan and the Savings Plan.

 

(b) Includes Ordinary Shares that each person has the right to acquire through options that become exercisable within 60 days after March 31, 2005. Options granted in ScottishPower American Depository Shares under the PSIP and ExSOP have been converted into options in Ordinary Shares. One American Depository Share equates to four Ordinary Shares.

 

9

Remuneration Report of the Directors

 

1    Ø    Consideration of Remuneration

              Matters by the Directors
2    Ø    Statement of Remuneration Policy
3    Ø    Elements of the Remuneration
              Package 2004/05

 

1    Consideration of Remuneration Matters by the Directors

 

The ScottishPower Board is responsible for determining the remuneration policy for the ScottishPower group. The Remuneration Committee, with delegated authority from the Board, determines the detail of remuneration arrangements for the Executive Team, including the executive directors, and reviews proposals in respect of other senior executives. The relationship between the Board and the Committee is based on formal Terms of Reference, which are available on the company’s website, and are regularly reviewed to ensure that they reflect best practice.

 

The Remuneration Committee consists solely of independent non-executive directors. Its members are Nolan Karras (Chairman), Euan Baird, Donald Brydon, Philip Carroll, Nick Rose and Nancy Wilgenbusch (the latter two directors were both appointed to the Committee on 1 June 2004). Sir Peter Gregson was Chairman of the Committee, and Mair Barnes was a member, until their retirement from the Board at the AGM on 23 July 2004. These members have no personal financial interest, other than as shareholders, in the matters considered by the Committee. Details of the payments made to all non-executive directors are set out in Table 48 (page 101).

 

The Chairman of the company, Charles Miller Smith, and the Chief Executive, Ian Russell, are invited to attend meetings and may provide guidance on the impact of remuneration policy and advise, as appropriate, on the performance of senior executives. They are not present during any discussion of their own remuneration. The Terms of Reference contain conflict of interest provisions to ensure that no directors are involved in any decision relating to their own remuneration.

 

The Committee is able to draw on advice from independent remuneration consultants and internal expertise. Towers, Perrin, Forster & Crosby, Inc., (“Towers Perrin”) act as remuneration consultant and independent advisor to the Committee. Towers Perrin’s appointment by the Committee followed a competitive tendering exercise. Towers Perrin also provides remuneration and other human resources consultancy services directly to some ScottishPower companies within parameters established by the Committee. The Terms of Reference of the independent remuneration advisors are available on the company’s website. Company executives whom the Committee may consult include the Group Company Secretary, (who acts as Secretary to the Committee), the Group Director, Human Resources, the Director Group Talent Management and Reward, and the Head of Group Reward. The Terms of Reference of the Remuneration Committee empower it to avail itself of external legal and professional advice at the expense of the company.

 

The Committee met on two occasions during the year ended 31 March 2005.

 

During the year, the Board accepted all of the recommendations from the Committee without significant amendment.

 

10

Remuneration Report of the Directors

 

2    Statement of Remuneration Policy

 

Philosophy and Policy

 

ScottishPower seeks to ensure that remuneration and incentive schemes are in line with best practice, provide a strong link to individual and company performance and promote a community of interest between employees and shareholders.

 

Rewards for executives and directors are designed to attract and retain individuals of high quality, who have the requisite skills and are incentivised to achieve levels of performance which exceed that of competitor companies. As such, remuneration packages must be market-competitive and capable of rewarding exceptional performance. All senior management remuneration packages are set according to a mid-market position, with packages above the mid-market level provided only where supported by demonstrably superior personal performance. Remuneration packages are developed to reflect the prevailing market practice in each business environment.

 

Annual bonus arrangements have been structured so that stretching targets are based on corporate, business unit and individual performance.

 

The company operates a Personal Shareholding Policy (“PSP”), requiring executives and key senior managers to build-up and retain a shareholding in the company in proportion to their annual salaries. These proportions are three times base salary for the Chief Executive and two times base salary for other executive directors. The Committee expects PSP participants to have accumulated their respective shareholding targets within eight years of the introduction of the Policy, that is by the end of May 2008, or eight years after the first award under any discretionary share plan for external appointees to the Board. The Committee reviews this policy regularly to ensure that it is in line with evolving best practice and in the interests of shareholders.

 

In setting remuneration levels, the Committee commissions an independent evaluation of the roles of the Executive Team. The Committee takes independent advice from Towers Perrin on market-level remuneration, based on comparisons with other companies of similar size and complexity, including the major utility companies, with which the company competes for executive talent.

 

The Committee recognises the importance of linking rewards to business and personal performance and believes that the arrangements detailed below provide an appropriate focus on performance and balance between short- and long-term incentives. The annual bonus plan and long-term incentive arrangements are expected to provide 51% of total reward for the achievement of stretching target objectives. Higher proportions of performance-based reward are available for the delivery of exceptional personal and business performance resulting in enhanced shareholder value.

 

The Committee constantly monitors market practice in order to remain competitive, to ensure that reward policy supports company strategy and to reflect good corporate governance practice. The Long Term Incentive Plan will expire at the 2006 AGM having reached the end of its ten-year lifespan. The Committee will, therefore, design an appropriate new long-term incentive plan for shareholder approval at the 2006 AGM. Prior to this the Committee will consult with major shareholders. At this time, no other substantial changes to the company’s policies with regard to directors’ remuneration are envisaged over the next year and in subsequent years. However, the Committee may develop policy and, should it determine any changes to be appropriate, will report such changes to shareholders through established channels of consultation and reporting.

 

3    Elements of the Remuneration Package 2004/05

 

Base Salaries

 

The Committee sets base salaries for the Executive Team by reference to individual performance through a formal appraisal system applied to all management employees, and to external market data, reflecting similar roles in comparable companies. Account is also taken of salary increases and employment conditions across the company.

 

Annual Performance-Related Bonus

 

Executive directors and senior management participate in the company’s performance-related annual incentive plans. Any payments to UK executives under the plans are non-pensionable and are determined by the Committee following assessment against stretching pre-determined targets. In line with US market practice, a proportion of bonus paid to US senior executives, including Judi Johansen the CEO of PacifiCorp, is pensionable.

 

The maximum annual incentive payment available to executive directors is 100% of base salary. 75% of any award is paid immediately in cash and 25% is deferred into company shares that are released to the individual after 3 years.

 

The 2004/05 annual incentive plan for the Chief Executive was based 45% on the achievement of key company financial targets, including Earnings per Share (“EPS”), interest cover, cash flow and return on capital. A further 45% was based on the achievement of key strategic objectives (including appropriate pre-determined targets in relation to customer service and health and safety, amongst others) and 10% was based on cultural and leadership behaviours.

 

For the other four executive directors, 25% of bonus was based on the achievement of key company financial targets, 25% was based on the achievement of key strategic objectives, 40% on the achievement of the appropriate function/division balanced scorecard targets (with financial metrics and performance targets relating to the function/division, including, where appropriate, customer service and health and safety metrics) and 10% was based on cultural and leadership behaviours.

 

11

Objectives are set annually by the Committee and performance against these is reviewed by the Committee at the half year and year end. In determining annual incentive payments for 2004/05, the Remuneration Committee gave detailed consideration to outturn against target in relation to company, divisional/functional and personal performance.

 

Payments made to executive directors were within the range of 53% to 96% of the maximum available opportunity.

 

Executive Share Plans

 

The company currently operates a performance share plan, known as the Long Term Incentive Plan (“LTIP”) for executive directors and other senior managers. In May 2004, the company made the final award under the Executive Share Option Plan 2001 (“ExSOP”).

 

Under the LTIP, awards to acquire shares in ScottishPower at nil or nominal cost are made to the participants up to a maximum value, at the time of grant, equal to 75% of base salary. The award will vest only if the Committee is satisfied that there has been sustained underlying performance of the company and, to this end, certain gateway performance targets are measured and the Committee reviews performance against these measures when determining if awards vest. The measures relate to the key financial performance indicators of the company and customer service standards. These measures provide a mechanism to safeguard stakeholder interests and provide an overview of the financial and operational success of the business.

 

The number of shares which actually vest is dependent upon the company’s comparative Total Shareholder Return (“TSR”) performance, over a three-year performance period. TSR measures ScottishPower’s comparative performance against key competitors and only provides rewards if ScottishPower is at least equal to the median performance of appropriate comparators. The Committee chose TSR as the performance measure for the LTIP as it believes that it provides a clear link to the creation of shareholder value.

 

LTIP awards were granted to 54 directors and senior executives during the year (Award 9). TSR performance is measured against an international comparator group of 37 major energy companies, as identified below.

 

AES Corp; American Electric Power Inc; Calpine Corp; Centrepoint Energy Inc; Centrica; Chubu Electric Power Co Inc; CLP Holdings Limited; Constellation Energy Group Inc; Dominion Resources Inc; Duke Energy Corp; Dynegy Inc; Edison International; El Paso Corp; Electrabel SA; Electricidade de Portugal SA; Endesa SA; Ente Nazionale per l’Energia Elettrica SpA (Enel); Entergy Corp; Exelon; FirstEnergy Corp; FPL Group Inc; Gas Natural SDG SA; Iberdrola SA; Kansai Electric Power Co Inc; National Grid Transco plc; PPL Corp; Progress Energy Inc; Public Service Enterprise Group Inc; RWE AG; Scottish and Southern Energy plc; Southern Company Inc; Tenaga Nasional Bhd; Tokyo Electric Power Co Inc; TXU Corp; Union Fenosa; Williams Companies Inc; and Xcel Energy Inc.

 

No shares vest unless the company’s TSR performance is at least equal to the median performance of the comparator group, at which point 40% of the initial award vests. 100% of the shares vest if the company’s performance is equal to or exceeds the top quartile. The number of shares that vest for performance between these two points is determined on a straight-line basis.

 

For LTIP Award 6, which had the potential to vest during the year, TSR performance was measured against a similar composition of international energy companies over the three-year period to 31 March 2004. After careful consideration, the Committee determined that the gateway measures relating to the financial and customer service performance of the company had been achieved. As the company was ranked at the median TSR performance level against the comparator group, 40% of the initial award vested. This meant that at the maximum level of participation whereby awards were made over shares with an initial value of 75% of base salary at May 2001, an award equal to 30% of base salary at May 2001, became available for exercise by participants in May 2004.

 

The Committee has approved the operation of the LTIP for 2005/06 and will continue to focus on performance and potential in determining LTIP participation. As an additional incentive and retention tool, the Committee will include selected key high potential/high performance individuals in the LTIP as identified by the talent management process (if not already at a level that qualifies for participation). The Committee has also agreed that participants who would normally receive an LTIP award as a result of their level in the company will only do so if they achieve a certain pre-determined level of performance as determined by the company’s performance management system. No significant changes to the operation of the LTIP have been implemented for 2005/06 and this will be the final grant under this plan as it will reach the end of its 10-year lifespan.

 

ExSOP awards were granted at market value to 300 senior executives including the Executive Directors in May 2004. Executive directors in post at May 2004 received an award of options with a value equivalent to 200% of base salary. Options granted to UK executives under the ExSOP are subject to the performance criterion that the average annual percentage increase in the company’s EPS be at least 3% (adjusted for any increase in the Retail Price Index). The Committee believes that EPS is an appropriate measure for the purposes of testing the ExSOP because it is based on the underlying financial performance of the company. This criterion is assessed at the end of the third financial year, the first year being the financial year starting immediately before the date of grant. If not satisfied on the third anniversary, the criterion may be retested, from the same base, on the fourth and fifth anniversaries of grant. Unvested options lapse at the fifth anniversary. The Company will make no further awards under the ExSOP.

 

Performance Graph

 

The Directors’ Remuneration Report Regulations require that a graph be presented showing the company’s TSR performance against the TSR performance of a broad equity market index over a five-year period. The FTSE 100 has been chosen because

 

12

 

Remuneration Report of the Directors

 

it is the principal index in which the company’s shares are quoted. The graph below presents the comparative TSR performance of the company during the period 1 April 2000 – 31 March 2005. The graph shows that ScottishPower has outperformed the index over this period.

 

LOGO

This graph looks at the value (net of withholding tax), at 31 March 2005, of £100 invested in ScottishPower on 31 March 2000 compared with that of £100 invested in the FTSE 100 Index. The other points plotted are the values at intervening financial year ends.

 

All-Employee Share Plans

 

To facilitate high levels of share ownership by employees, the company operates three savings-related share ownership plans. These are all-employee Inland Revenue or Internal Revenue Service approved plans and are not subject to performance conditions. Participation is available to executive directors on the same basis as to all other eligible employees.

 

Sharesave

 

Employees domiciled in the UK are eligible to participate in the ScottishPower all-employee Sharesave plan. Under this plan, options are granted over ScottishPower shares at a discount of 20% from the prevailing market price at the time of grant to eligible employees who commit to save up to £250 per month over a period of three or five years.

 

Employee Share Ownership Plan (“ESOP”)

 

The company operates an ESOP (also known as a Share Incentive Plan) for all UK domiciled employees. The ESOP enables employees to purchase shares in the company from pre-tax income up to the limits specified in the legislation. The value of these shares is at risk as they are not normally released until the legislation allows. The company matches these shares at no cost to the employee on a one-for-one ratio.

 

Defined Contribution Savings Plan (“401(k)”)

 

Employees domiciled in the US are eligible to participate in a tax-beneficial savings plan (known as a 401(k) plan) provided for all US employees. The Plan provides for employee contributions up to statutory limits, which are matched by the company at 50% of the employee contribution up to the first 6% of pay (i.e. a 3% match). The company also makes an additional contribution of 2% of eligible pay for all participants. All contributions to the Plan are invested in a range of investment funds, including ScottishPower American Depositary Shares (“ADS”), at the discretion of the participant.

 

Pension

 

The UK domiciled executive directors, and other UK senior managers of the company, are provided with pension benefits through the company’s main pension scheme, and through an executive top-up pension plan which provides a maximum pension of two-thirds of final salary on retirement at age 63, reduced where service to age 63 is less than 20 years. Pensionable salary is normally base salary in the 12 months prior to leaving the company although there are prescribed mechanisms for calculating pensionable salary by averaging base salary over a period of up to three out of the last 10 years’ service. The employee contributes 5% of salary to the scheme. Life assurance provision of four times pensionable salary and a widow’s pension of half the executive’s pension on death are provided.

 

UK domiciled individuals who joined the company on or after 1 June 1989 are subject to the Inland Revenue ‘earnings cap’, introduced by the Finance Act 1989. Entitlement to pension benefits above the cap cannot be provided through the company’s approved pension scheme, and therefore arrangements on an unapproved basis have been made to provide total benefits for executives affected by the legislation as though there was no cap. The total liability calculated on an FRS 17 basis in respect of executives and senior employees arising in relation to unapproved benefits accrued for service for the year to 31 March 2005 was £1,520,900. The Trustee body of the Executive Top Up Plan is chaired by the Company Secretary.

 

The Committee has considered, at length, the company’s response to the government’s simplification of the pensions taxation regime to take effect on 6 April 2006 (‘A-day’). In determining future executive pensions policy, the Committee ensured that no additional benefit would accrue to executive directors as a result of the taxation reform. The Committee has decided that the unapproved promise will remain the sole vehicle for providing executive pensions above the new Life Time Allowance.

 

The US domiciled executive director and other US senior managers of the company participate in a qualified defined benefit pension plan and a Supplemental Executive Retirement Plan. The defined benefit plan is a non-contributory retirement plan. Benefits vest after five years of service and are determined

 

13

by each employee’s years of service with the company, final average pay (the highest 60 consecutive months of eligible pay over the last 120 months of employment) and age at retirement. Pay includes base pay plus annual incentive plan payments up to 10% of annual base pay. The amount of pay considered under the plan is further limited by statute. Benefits under the plan, plus benefits payable from the US Social Security system, at age 65 (normal retirement) are targeted to replace 60%-70% of final average pay after a full career (defined as 30 years) with the company.

 

As a US domiciled executive director, Judi Johansen participates in the PacifiCorp Supplemental Executive Retirement Plan (“SERP”) which provides additional retirement benefits to a select group of management or highly compensated employees as a means to attract and retain highly effective individuals. Participants receive benefits at retirement based on length of service with the company and average pay in the 60 consecutive months of highest pay out of the last 120 months, and pay for this purpose would include salary and annual incentive plan payments. Benefits are based on 50% of final average pay plus 1% of final average pay for each year that the Company meets certain performance goals set for each fiscal year by the Company. The maximum benefit is 65% of final average pay. Retirement benefits are reduced to reflect Social Security benefits as well as certain prior employer retirement benefits and other retirement benefits from the company’s qualified retirement plan. Participants are entitled to receive full benefits upon retirement after age 60 with at least 15 years of service. Participants are also entitled to receive reduced benefits upon early retirement after age 55 or after age 50 with at least 15 years of service and 5 years of participation in the supplemental plan.

 

The Committee has reported the pension expense in accordance with the requirements of the UK Listing Authority and Directors’ Remuneration Report Regulations. Pension costs detailed in the Accounts are calculated as the cost of providing benefits accrued in the 2004/05 year, in accordance with appropriate accounting standards.

 

Benefits

 

Executive directors are eligible for a range of benefits on which they are assessed for tax. These include the provision of a company car or a cash allowance in lieu of a car, fuel, private medical provision and permanent health insurance. The provision and level of benefits is reviewed regularly to ensure that practice is in line with the market.

 

The US domiciled executive director participates in post-retirement healthcare plans, subject to the eligibility criteria at termination from the company. Currently, those criteria are termination after age 55 with five or more years of service.

 

Service Contracts

 

Ian Russell, Charles Berry and David Nish entered into revised service contracts with the company dated 3 June 2003. On appointment to the Board, Simon Lowth and Judi Johansen entered into new service contracts with the company on 1 September 2003 and 1 October 2003 respectively.

 

These are rolling contracts terminable by either party on no more than 12 months’ notice. They contain a payment in lieu of notice provision that allows the company to terminate the contract immediately and a liquidated damages provision which provides for a payment to the director if the company terminates the contract unlawfully. The payment in lieu of notice and liquidated damages provisions are calculated by reference to 12 months’ basic salary and contractual benefits (except bonus, pension and share-related incentives as set out below). With the exception of the US director, Judi Johansen, the company has the discretion to pay these amounts in full on termination of employment or, in line with emerging best practice, in instalments. If instalments are paid, an initial payment will be made in respect of six months’ loss only. Further instalments may be paid if the director has not started alternative employment within six months of the termination date. The director will only receive payment in respect of 12 months’ loss should he or she fail to start alternative employment within nine months of termination. If the director starts alternative employment within nine months of termination, the instalments will be reduced by the basic salary received by the director in his alternative employment. In line with US market practice any payments to be paid to the US director on unlawful termination of the contract shall be paid on regular Company pay dates or as otherwise agreed by both parties. If the director commences other employment within six months following termination of employment, severance pay and benefits will not be offset by any salary received from an alternative employer. If other employment commences after six months following termination of employment, any remaining severance pay due will be reduced by any salary or bonus received from alternative employment for the remainder of the severance pay period.

 

The director’s entitlement under any performance related pay scheme for the period prior to termination will be unaffected as will any entitlement under any executive share scheme. In addition, the company will pay to the director an amount representing a proportion of his or her maximum annual bonus for the notice period based on the company’s performance against its pre-determined financial objectives. This will be paid at the same time as annual bonuses are paid to other employees providing the director has complied with confidentiality obligations and any restrictive covenants and may be reduced if the director obtains alternative employment.

 

The service contract does not provide for any additional benefits where termination of a director is as a result of a change in control of the company.

 

If not otherwise terminated, the service contracts terminate automatically at Normal Retirement Age.

 

The company’s policy is that all new directors will be offered service contracts on the terms outlined above.

 

14

Remuneration Report of the Directors

 

The Committee’s policy on early termination is to emphasise the duty to mitigate to the fullest extent practicable. Senior managers within the company have notice periods ranging from six months to one year.

 

The Chairman, Charles Miller Smith, does not have a service contract with the company.

 

The Remuneration Committee, in light of the expected timetable for obtaining regulatory approvals for PacifiCorp’s sale to MidAmerican, approved a cash retention award for PacifiCorp’s Chief Executive Officer, Judi Johansen, equal to one times base salary, which is contingent on the closing of PacifiCorp’s sale to MidAmerican and also on her continued employment and her satisfactory performance of duties in the period through the sale’s closing. She will receive 80% of the retention award upon the closing of the sale and the remaining 20% of the award 365 days from the date of the closing, provided there have been no breach of warranty claims against ScottishPower or PacifiCorp Holdings, Inc. under the Stock Purchase Agreement with MidAmerican.

 

External Non-Executive Appointments

 

The company encourages its Executive Directors to become non-executive directors of other companies, provided that these appointments are not with competing companies, are not likely to lead to any conflicts of interest, and do not require extensive commitments of time which would prejudice their roles within the company. This serves to add to their personal and professional experience and knowledge, to the benefit of the company. Any fees derived from such appointments may be retained by the executives.

 

In this respect, during 2004/05 Charles Berry received a fee of £1,135 from the Securities Trust of Scotland in his position as non-executive director. No other Executive Director receives remuneration from their respective external non-executive roles.

 

Remuneration Policy for Non-Executive Directors

 

The remuneration of non-executive directors is determined by the Chairman and the executive directors of the Board and consists of a base fee of £31,000 p.a., a committee membership fee of £5,000 p.a. (not paid to a committee chairman), a fee of £15,000 p.a. for chairing the Audit Committee and the Remuneration Committee, and an international travel fee of £1,000 for attending a tranche of meetings that involve a Transatlantic journey.

 

With effect from 1 April 2004, the Board introduced a fee of £10,000 p.a. for chairing the Group Finance Committee of the Board and £3,000 p.a. to be a member. Such fees are only paid to the independent non-executive directors who serve on the Group Finance Committee.

 

Effective from 1 August 2004, the Board introduced a fee of £10,000 p.a. for the role of Senior Independent Director.

 

In line with best practice, the independent non-executive directors do not have service contracts, but are appointed under standard letters of appointment. They are not members of the company’s pension schemes and do not participate in any bonus, share option or other profit or long-term incentive plan. Full details of the remuneration of the non-executive directors are contained in Table 48.

 

Compensation of Directors and Officers

 

For US reporting purposes, it is necessary to provide information on compensation and interests for directors and officers. The aggregate amount of compensation paid by the group to all directors and officers of the company, as a group, was £7,488,467.

 

During 2004/05 the cost to the group to provide pension, retirement or similar benefits for directors and officers of the company pursuant to any existing plan provided or contributed to by the group was £4,720,784 (calculated in accordance with Statement of Standard Accounting Practice 24 ‘Accounting for pension costs’).

 

Interest of Management in Certain Transactions

 

There have been no material transactions during the group’s three most recent financial years, nor are there presently proposed to be any material transactions to which the company or any of its subsidiaries was or is a party and in which any director or officer, or 10% shareholder, or any relative or spouse thereof or any relative of such a spouse, who had the same home as such person or who is a director or officer of any subsidiary of the company has or is to have a direct or indirect material interest.

 

During the group’s three most recent financial years there has been no, and at present there is no, outstanding indebtedness to the company or any of its subsidiaries owed or owing by any director or officer of the group or any associate thereof.

 

Directors’ Interests

 

Other than as disclosed, none of the directors had a material interest in any contract of significance with the company and its subsidiaries during or at the end of the financial year. The directors’ interests, all beneficial, in the ordinary shares of the company, including interests in options under the company’s ExSOP and Sharesave Scheme and awards under the LTIP, are shown on pages 102 to 105.

 

Directors’ Emoluments

 

Table 48 provides a breakdown of the total emoluments of the Chairman and all the directors in office during the year ended 31 March 2005.

 

Directors’ Pension Benefits

 

Details of pension benefits earned by the executive directors during the year are shown in Table 49.

 

The following tables provide details of the remuneration, pensions and share interests of the directors and the information is audited.

 

15

Table 48

 

  Ø Directors’ Emoluments 2004/05

 

    

Basic Salary

£ 000’s

   

Bonuses

£ 000’s

   

Benefits in Kind

£ 000’s

   

Total

£ 000’s

Total Emoluments

    2005
    2004
    2005
    2004
    2005
    2004
    2005
    2004

Chairman and executive directors

                                        

Charles Miller Smith (Non-Executive Chairman)

    275.0    275.0    —      —      —      4.7    275.0    279.7

Ian Russell

    705.0    650.0    627.5    414.4    47.6    32.7    1,380.1    1,097.1

Charles Berry

    400.0    315.0    382.0    212.6    37.7    27.4    819.7    555.0

Judi Johansen*

    406.3    206.6    213.3    258.3    11.5    3.2    631.1    468.1

Simon Lowth

    430.0    242.1    354.8    151.3    16.1    6.7    800.9    400.1

David Nish

    430.0    415.0    387.0    269.8    41.8    31.7    858.8    716.5
    
  
  
  
  
  
  
  

Total

    2,646.3    2,103.7    1,964.6    1,306.4    154.7    106.4    4,765.6    3,516.5
    
  
  
  
  
  
  
  
    

Fees

£ 000’s

   

Bonuses

£ 000’s

    Benefits in Kind
£ 000’s		   

Total

£ 000’s

     2005
    2004
    2005
    2004
    2005
    2004
    2005
    2004

Non-executive directors (fees and expenses)

                                        

Euan Baird

    37.0    32.8    —      —      —      2.9    37.0    35.7

Mair Barnes (retired 23 July 2004)

    13.7    38.0    —      —      0.6    3.4    14.3    41.4

Donald Brydon

    53.8    29.6    —      —      13.4    0.1    67.2    29.7

Philip J Carroll

    55.0    23.8    —      —      0.6    1.5    55.6    25.3

Sir Peter Gregson (retired 23 July 2004)

    18.7    51.0    —      —      0.7    3.0    19.4    54.0

Nolan Karras**

    64.3    53.9    —      —      —      3.7    64.3    57.6

Nick Rose

    55.1    38.8    —      —      11.8    1.7    66.9    40.5

Vicky Bailey (appointed 1 June 2004)

    34.5    —      —      —      2.2    —      36.7    —  

Nancy Wilgenbusch** (appointed 1 June 2004)

    39.9    —      —      —      —      —      39.9    —  
    
  
  
  
  
  
  
  

Total

    372.0    267.9    —      —      29.3    16.3    401.3    284.2
    
  
  
  
  
  
  
  

 

Other emoluments

 

*       Conversion rate used for Judi Johansen is £1 = $1.846, being the average exchange rate during the year.

 

**     Nolan Karras and Nancy Wilgenbusch received emoluments in the US of £8,667 (2004 £9,637) and £2,709 respectively. These amounts relate to services to the Utah and Pacific regional advisory boards and are paid in the form of cash and shares. The amounts are included within ‘Fees’ in the above table.

 

(i)     The emoluments of the highest paid director (Ian Russell) excluding pension contributions were £1,380,079 (2004 £1,097,144). Details of share related incentives are contained in Tables 50 and 51.

 

(ii)    Ian Russell has an entitlement under the unapproved pension benefits described further in Table 49.

 

16

Remuneration Report of the Directors

 

Table 49

 

Ø Defined Benefits Pension Plans 2004/05

 

Year

   

Transferred

- in benefits
£ p.a.

    Additional
pension
earned in year
(net of inflation)
£ p.a.
   

Accrued
pension at

end of year
£ p.a.

   

(A)

Transfer value
of increases
after inflation
(net of director’s
contribution)

£

   

Value of
accrued
pension at
start of year

£

   

Value of
accrued
pension at

end of year

£

   

(B)

Total change

in value
during the year
(net of director’s
contributions)

£

Ian Russell

    19,347    31,017    246,803    430,932    2,637,029    3,385,630    743,500

Charles Berry

    —      37,397    152,287    525,393    1,416,165    2,125,091    703,827

Judi Johansen*

    —      20,401    59,547    78,327    146,921    252,611    105,689

Simon Lowth

    34,577    12,005    53,529    116,115    347,141    530,246    178,005

David Nish

    45,867    9,472    116,958    102,078    1,020,190    1,297,583    272,293

 

  * Part of Judi Johansen’s benefits are provided in defined contribution form, through a company 401(k) plan. The figures in the table do not include any 401(k) element. The company contribution payable to the 401(k) plan in respect of Judi Johansen for the period 1 April 2004 to 31 March 2005 was £6,540. See also note (xi) regarding her potential entitlement to post-retirement healthcare benefits. The conversion rate used is £1=$1.846 being the average exchange rate during the year.

 

  (i) The accrued entitlement of the highest paid director (Ian Russell) was £246,803 (2004 £208,489). During the year, retirement benefits were accrued under the defined benefits pension scheme in respect of five directors (2004 five directors).

 

  (ii) The transfer value of the increases after inflation (A) represents the current capital sum which would be required, using demographic and financial assumptions, to produce an equivalent increase in accrued pension and ancillary benefits, excluding the statutory inflationary increase, and after deduction of members’ contributions. Although the transfer value represents a liability to the Pension Scheme in respect of approved benefits and to the company in respect of any unapproved benefits, it is not a single sum paid or due to be paid to the individual director and cannot therefore meaningfully be added to the annual remuneration. Instead, this value would not be payable until the director’s retirement date, and thereafter would be spread over the remainder of his/her lifetime (and also covering the cost of dependants’ benefits after his/her death).

 

  (iii) The total change in value (B) in the last column of the table above reflects the following elements:

 

  1. changes to the economic and demographic assumptions underlying the transfer value basis over the year

 

  2. any increases in pensionable salary received during the year

 

  3. the completion of another year of pensionable service during the year

 

  4. the directors are a year closer to drawing their pensions, which increases their pension value (all other things being equal).

 

The change in the amount of the transfer values over the year includes the effect of fluctuations in factors that are beyond the control of the company and its directors, such as stockmarket movements and long-term interest rates.

 

  (iv) The accrued pension shown is that which would be paid annually on retirement based upon service to the end of the year. Members of the company’s schemes have the option of paying additional voluntary contributions; neither the contributions nor the resulting benefits are included in the above table.

 

  (v) Directors who joined the UK pension scheme on or after 1 June 1989 are subject to the earnings cap, introduced in the Finance Act 1989. Pension entitlements which cannot be provided through the company’s approved schemes, due to the earnings cap, are provided through unapproved pension arrangements, details of which are included in the Remuneration Report. The pension benefits disclosed above include approved and unapproved pension arrangements.

 

  (vi) The increase in UK accrued pension during the year excludes the increase due to RPI inflation as measured at December 2004 (3.5%).

 

  (vii) The value of directors’ UK entitlements has been calculated on the basis of actuarial advice in accordance with Actuarial Guidance note GN11, in two parts: the approved element being based upon the normal cash equivalent transfer value assumptions; the unapproved element being calculated in line with FRS 17 assumptions. The value of the US director’s entitlement has been calculated in line with FRS 17 assumptions.

 

  (viii) Transferred-in plan benefits represent pension rights accrued in respect of previous employments. The accrued pension shown at the end of the year includes transferred-in benefits.

 

  (ix) The total liabilities, calculated on a FRS17 basis, arising in relation to UK unapproved benefits for all executives and senior employees for service in the year to 31 March 2005 was £1,520,900 (2004 £934,100). This figure relates only to the cost of benefits accruing over the year but does not include any finance items. It therefore differs from the full FRS17 charge for unapproved benefits over the same period.

 

  (x) All benefits above are provided on a defined benefit basis.

 

  (xi) Judi Johansen may also be eligible to participate in the company’s post-retirement healthcare plans, providing that she meets the eligibility criteria at the time she terminates or retires from the company. Currently that criteria is termination after age 55 with five of more years of service.

 

Table 50

 

Ø Directors’ Interests in ScottishPower Shares

 

     Ordinary shares
    Share options (Executive1)
    Share options (Sharesave)
    Long Term Incentive Plan
     31.3.05
   

1.4.04

(or date of
appointment
if later)

    31.3.05
   

1.4.04

(or date of
appointment
if later)

    31.3.05
   

1.4.04

(or date of
appointment
if later)

    31.3.05
   

1.4.04 (or date

of appointment if later)

                     **Vested
    *Potential
    **Vested
    *Potential

Charles Miller Smith

    11,000    11,000    —      —      —      —      —      —      —      —  

Vicky Bailey (appointed 1 June 2004)

    —      —      —      —      —      —      —      —      —      —  

Euan Baird

    114,363    114,363    —      —      —      —      —      —      —      —  

Donald Brydon

    3,000    3,000    —      —      —      —      —      —      —      —  

Philip Carroll

    4,000    4,000    —      —      —      —      —      —      —      —  

Nolan Karras

    42,446    39,297    —      —      —      —      —      —      —      —  

Nick Rose

    5,395    5,128    —      —      —      —      —      —      —      —  

Nancy Wilgenbusch (appointed 1 June 2004)

    508    —      —      —      —      —      —      —      —      —  

Ian Russell

    •128,280    127,376    1,206,427    844,192    5,290    5,290    58,047    367,006    21,217    323,243

Charles Berry

    •41,712    23,506    628,407    422,884    2,941    2,941    —      195,279    11,968    161,734

Judi Johansen

    103,331    88,960    496,500    898,000    —      —      —      166,289    —      86,627

Simon Lowth

    17,710    —      220,937    —      —      —      —      82,851    —      —  

David Nish

    •36,415    13,964    738,171    517,234    —      2,509    —      230,230    10,880    197,602

 

 

17

None of the directors has an interest in ordinary shares which is greater than 1% of the issued share capital of the company.

 

1 Includes options granted under the Executive Share Option Plan 2001 and, where applicable, the PacifiCorp Stock Incentive Plan.

 

* These shares represent, in each case, the maximum number of shares which the directors may receive, dependent on the satisfaction of performance criteria as approved by shareholders in connection with the Long Term Incentive Plan.

 

** These shares represent the number of shares the directors are entitled to receive when the LTIP award becomes exercisable calculated according to the performance criteria measured over the three-year performance period.

 

• These shares include the number of shares which the directors hold in the Employee Share Ownership Plan, shown below.

 

     Free shares
    Partnership
shares
    Matching shares
    Dividend shares
    Total
     31.3.05
    1.4.04
    31.3.05
    1.4.04
    31.3.05
    1.4.04
    31.3.05
    1.4.04
    31.3.05
    1.4.04

Ian Russell

    50    50    1,580    1,210    1,580    1,210    430    266    3,640    2,736

Charles Berry

    50    50    1,580    1,210    1,580    1,210    430    266    3,640    2,736

David Nish

    50    50    1,580    1,210    1,580    1,210    430    266    3,640    2,736

 

Between 31 March 2005 and 19 May 2005, Ian Russell, Charles Berry and David Nish each acquired 60 Partnership shares and 60 Matching shares as part of the regular monthly transactions of the Employee Share Ownership Plan; and Judi Johansen, Nolan Karras and Nancy Wilgenbusch acquired 394.0877, 30.8167 and 30.8167 ScottishPower ADSs (1,577, 123 and 123 Ordinary shares) respectively as part of the PacifiCorp Compensation Reduction Plan. Additionally, 1,225 ADSs (4,900 ordinary shares) held by Judi Johansen in the form of Unvested Restricted Stock in the PacifiCorp Stock Incentive Plan, vested and became non-forfeitable on 24 April 2005 and, in accordance with the deferral election executed by Judi Johansen, were all immediately transferred into the PacifiCorp Compensation Reduction Plan. Otherwise, there have been no changes to the directors’ interests between 31 March 2005 and 19 May 2005.

 

Table 51

 

Ø Directors’ Interests in Performance and Other Share Plans at 31 March 2005

 

     1 April 2004
(or date of
appointment
if later)
    Granted
    Exercised
    Lapsed#
    31 March
2005
    Option
exercise price
(pence)
    Date
exercised
    Market price
at date of
exercise
(pence)
    Date from
which
exercisable
    Expiry date

Long Term Incentive Plan

                                                  

Ian Russell

    21,217    —      —      —      21,217    nil              05 May 04    04 May 07
     92,075    —      —      55,245    36,830    nil              04 May 04    03 May 08
     101,600    —      —      —      101,600    nil              02 May 05    01 May 09
     129,568    —      —      —      129,568    nil              10 May 06    09 May 10
     —      135,838    —      —      135,838    nil              27 May 07    26 May 11
    
  
  
  
  
  
  
  
  
  
     344,460    135,838    —      55,245    425,053                         
    
  
  
  
  
  
  
  
  
  

Charles Berry

    11,968    —      11,968    —      —      nil    09 Jun 04    392.5    05 May 04    04 May 07
     43,526    —      17,410    26,116    —      nil    09 Jun 04    392.5    04 May 04    03 May 08
     55,418    —      —      —      55,418    nil              02 May 05    01 May 09
     62,790    —      —      —      62,790    nil              10 May 06    09 May 10
     —      77,071    —      —      77,071    nil              27 May 07    26 May 11
    
  
  
  
  
  
  
  
  
  
     173,702    77,071    29,378    26,116    195,279                         
    
  
  
  
  
  
  
  
  
  

Judi Johansen

    36,794    —      —      —      36,794    nil              02 May 05    01 May 09
     49,833    —      —      —      49,833    nil              10 May 06    09 May 10
     —      79,662    —      —      79,662    nil              27 May 07    26 May 11
    
  
  
  
  
  
  
  
  
  
     86,627    79,662    —      —      166,289                         
    
  
  
  
  
  
  
  
  
  

Simon Lowth

    —      82,851    –    —      82,851    nil              27 May 07    26 May 11
    
  
  
  
  
  
  
  
  
  
     —      82,851    —      —      82,851                         
    
  
  
  
  
  
  
  
  
  

David Nish

    10,880    —      10,880    —      —      nil    25 Nov 04    394.3    05 May 04    04 May 07
     50,223    —      20,089    30,134    —      nil    25 Nov 04    394.3    04 May 04    03 May 08
     64,655    —      —      —      64,655    nil              02 May 05    01 May 09
     82,724    —      —      —      82,724    nil              10 May 06    09 May 10
     —      82,851    —      —      82,851    nil              27 May 07    26 May 11
    
  
  
  
  
  
  
  
  
  
     208,482    82,851    30,969    30,134    230,230                         
    
  
  
  
  
  
  
  
  
  

 

# During the year, the performance period for the awards granted under the Long Term Incentive Plan on 4 May 2001 ended and, on the basis of the company’s total shareholder return, 40% of shares under awards vested. These awards became exercisable either immediately or at any other time until the seventh anniversary of grant. The market price of ScottishPower ordinary shares at the date of grant of these awards was 432.35 pence and on 27 May 2004, being the date of vesting, was 396.75 pence. Long Term Incentive Plan awards granted before 2001 became exercisable on the fourth anniversary of grant. Awards granted in 2001 and subsequently became exercisable on the third anniversary of grant, as approved by shareholders.

 

     Awards granted during the year were granted for no consideration. The market value of a ScottishPower shares at the date of grant was 396.75 pence.

 

18

Remuneration Report of the Directors

 

Table 51

 

Ø Directors’ Interests in Performance and Other Share Plans at 31 March 2005 continued

 

     1 April 2004
(or date of
appointment
if later)
    Granted
    Exercised
    Lapsed
    31 March
2005
    Option
exercise
price
(pence)
     Date
exercised
    Market price
at date of
exercise
(pence)
     Date from
which
exercisable
    Expiry date

Executive Share Option Plan 2001

                                                    

Ian Russell

    227,743    —      —      —      227,743    483.0                21 Aug 04    21 Aug 11
     270,935    —      —      —      270,935    406.0                02 May 05    02 May 12
     345,514    —      —      —      345,514    376.3                10 May 06    10 May 13
     —      362,235    —      —      362,235    389.3                27 May 07    27 May 14
    
  
  
  
  
  
 
  
 
  
     844,192    362,235    —      —      1,206,427                           
    
  
  
  
  
  
 
  
 
  

Charles Berry

    107,660    —      —      —      107,660    483.0                21 Aug 04    21 Aug 11
     147,783    —      —      —      147,783    406.0                02 May 05    02 May 12
     167,441    —      —      —      167,441    376.3                10 May 06    10 May 13
     —      205,523    —      —      205,523    389.3                27 May 07    27 May 14
    
  
  
  
  
  
 
  
 
  
     422,884    205,523    —      —      628,407                           
    
  
  
  
  
  
 
  
 
  

Judi Johansen

    61,824    —      —      —      61,824    311.5                02 May 05    02 May 12
     61,824    —      61,824    —      —      311.5     01 Jun 04    398.8 **   02 May 03    02 May 12
     61,824    —      61,824    —      —      311.5     01 Jun 04    398.8 **   02 May 04    02 May 12
     61,828    —      —      —      61,828    311.5                02 May 05    02 May 12
     81,968    —      81,964    —      4    322.8     01 Jun 04    398.8 **   10 May 04    10 May 13
     81,964    —      —      —      81,964    322.8                10 May 05    10 May 13
     81,968    —      —      —      81,968    322.8                10 May 06    10 May 13
     —      208,912    —      —      208,912    379.9                27 May 07    27 May 14
    
  
  
  
  
  
 
  
 
  
     493,200    208,912    205,612    —      496,500                           
    
  
  
  
  
  
 
  
 
  

Simon Lowth

    —      220,937    —      —      220,937    389.3                27 May 07    27 May 14
    
  
  
  
  
  
 
  
 
  
     —      220,937    —      —      220,937                           
    
  
  
  
  
  
 
  
 
  

David Nish

    124,223    —      —      —      124,223    483.0                21 Aug 04    21 Aug 11
     172,413    —      —      —      172,413    406.0                02 May 05    02 May 12
     220,598    —      —      —      220,598    376.3                10 May 06    10 May 13
     —      220,937    —      —      220,937    389.3                27 May 07    27 May 14
    
  
  
  
  
  
 
  
 
  
     517,234    220,937    —      —      738,171                           
    
  
  
  
  
  
 
  
 
  

PacifiCorp Stock Incentive Plan

                                                    

Judi Johansen

    76,464    —      76,464    —      —      331.5     01 Jun 04    398.8 **   25 Jan 02    25 Jan 11
     76,468    —      76,468    —      —      331.5     01 Jun 04    398.8 **   25 Jan 03    25 Jan 11
     76,468    —      76,468    —      —      331.5     01 Jun 04    398.8 **   25 Jan 04    25 Jan 11
     22,464    —      22,464    —      —      339.9     01 Jun 04    398.8 **   24 Apr 02    24 Apr 11
     76,468    —      76,468    —      —      339.9     01 Jun 04    398.8 **   24 Apr 03    24 Apr 11
     76,468    —      76,468    —      —      339.9     01 Jun 04    398.8 **   24 Apr 04    24 Apr 11
    
  
  
  
  
  
 
  
 
  
     404,800    —      404,800    —      —                             
    
  
  
  
  
  
 
  
 
  

Sharesave Scheme

                                                    

Ian Russell

    5,290    —      —      —      5,290    301.0                01 Sep 08    28 Feb 09
    
  
  
  
  
  
 
  
 
  
     5,290    —      —      —      5,290                           
    
  
  
  
  
  
 
  
 
  

Charles Berry

    2,941    —      —      —      2,941    323.0 *              01 Sep 05    28 Feb 06
    
  
  
  
  
  
 
  
 
  
     2,941    —      —      —      2,941                           
    
  
  
  
  
  
 
  
 
  

David Nish

    2,509    —      2,509    —      —      386.0 *   17 Jan 05    412.5     01 Sep 04    28 Feb 05
    
  
  
  
  
  
 
  
 
  
     2,509    —      2,509    —      —                             
    
  
  
  
  
  
 
  
 
  

 

*       Denotes options granted under a three—year scheme.

 

**     The exercise of Executive Share Option Plan 2001 options by Judi Johansen on 1 June 2004 was over 30,912 ADSs at US$23.55 per ADS and 20,491 ADSs at US$24.40 per ADS. The exercise of PacifiCorp Stock Incentive Plan options by Judi Johansen on 1 June 2004 was over 57,350 ADSs at US$25.06 per ADS and 43,850 ADSs at US$25.70 per ADS. On 1 June 2004 the market value of a ScottishPower ADS was US$29.51.

 

(i)     The market price of the shares at 31 March 2005 was 409.0 pence and the range during 2004/05 was 377.5 pence to 446.75 pence.

 

(ii)    The Long Term Incentive Plan makes annual awards to acquire shares in ScottishPower at nil or nominal cost to the plan participants up to a maximum value equal to 75% of base salary. The award will vest only if the Remuneration Committee is satisfied that certain performance measures related to the sustained underlying financial performance of the company and sustained underlying performance in certain Customer Service Standards are achieved over a period of three financial years commencing with the financial year preceding the date an award is made. Assuming that such targets have been achieved, the number of shares that can be acquired under awards granted before May 2001 was dependent upon how the company ranked in terms of its total shareholder return performance over a three—year period, in comparison to the constituent companies of the FTSE 100 index and the Electricity and Water sectors. A percentage of each half of the award would vest depending upon the company’s ranking within each of the comparator groups. For awards granted in May 2001 and subsequently, the company’s total shareholder return performance is compared over a three—year period against an international comparator group of major energy companies. A percentage of the award vests dependent upon the company’s ranking within the comparator group. The plan participant may acquire the shares in respect of the percentage of the award which has vested at any time after the third year (or fourth year for awards granted before 2001) up to the seventh year after the grant of the award. No dividends accrue to participants prior to vesting.

 

19

(iii) The company has granted options annually for the last four years under the Executive Share Option Plan 2001 to relevant executives and senior managers at nil or nominal cost. The exercise of options granted to UK executives and senior managers, and of those granted to Judi Johansen since her appointment to the board of ScottishPower, is subject to the performance criterion that the percentage increase in the company’s annualised earnings per share be at least 3% (adjusted for any increase in the RPI). This criterion is assessed at the end of the third financial year, the first year being the financial year starting immediately before the date of grant. If the criterion is not satisfied over this period, it is tested again at the end of the fourth financial year. If the criterion is not satisfied over this period, it is tested again at the end of the fifth financial year. If the criterion is not satisfied over this period, then the options lapse. The exercise of options granted to US participants is not normally subject to the satisfaction of performance criteria, and they normally become exercisable as follows: one-third of the options from the first anniversary of the date of grant, a further one-third from the second anniversary and the final one-third from the third anniversary of the date of grant. In 2002, an additional, conditional share option award was made to some senior managers, including Judi Johansen, under the Executive Share Option Plan 2001. The exercise of these additional, conditional options is subject to the same exercise period and performance criterion as options granted to UK participants.

 

(iv) On 21 August 2004, options granted on 21 August 2001 to Ian Russell, Charles Berry and David Nish under the Executive Share Option Plan 2001 vested following testing against the performance criterion and became exercisable immediately. The market price of ScottishPower ordinary shares on 21 August 2001 and 20 August 2004 (being the last trading date before 21 August 2004) was 475.99 pence and 390.25 pence respectively.

 

(v) Options granted to Judi Johansen under the PacifiCorp Stock Incentive Plan and the Executive Share Option Plan 2001 are granted over ScottishPower ADSs. For the purposes of the above table, these options, in the case of Judi Johansen, have been converted to ordinary shares as follows: one ScottishPower ADS equals four ScottishPower ordinary shares. The US$ ADS option prices were converted so that they may be represented in terms of ScottishPower ordinary shares. The prices were further converted at the closing exchange rate on 31 March 2005 of £1 = $1.890 so as to be quoted in pence in the above table.

 

   61,824 options granted to Judi Johansen on 2 May 2002 and a further 81,968 options granted on 10 May 2003 under the Executive Share Option Plan 2001 became exercisable on 2 May 2004 and 10 May 2004 respectively. The market price of ScottishPower ordinary shares on 2 May 2002, 9 May 2003 (being the last trading date before 10 May 2003), 30 April 2004 (being the last trading date before 2 May 2004) and 10 May 2004 was 411.5 pence, 376.25 pence, 383.25 pence and 378.00 pence respectively. 76,468 options granted on 24 April 2001 to Judi Johansen under the PacifiCorp Stock Incentive Plan became exercisable on 24 April 2004. The market price of ScottishPower ordinary shares on 24 April 2001 and 23 April 2004 (being the last trading date before 24 April 2004) was 477.00 pence and 391.75 pence respectively.

 

(vi) The option price for Sharesave options is calculated by reference to the middle-market quotation on the day immediately preceding the date of invitation and discounted by 20% in accordance with the Inland Revenue rules for such schemes.

 

   The number of options granted to a director under the Sharesave Scheme is calculated by reference to the total amount which the director agrees to save for a period of either three or five years under an Inland Revenue approved savings contract, subject to a current maximum.

 

(vii) Total gains made on exercise of directors’ share options and awards during the year were £623,361 (2004 £60,442). The conversion rate for gains made by Judi Johansen is £1 = $1.846, being the average exchange rate during the year.

 

Approved by the Board and signed on its behalf by

 

LOGO

 

Nolan Karras  Chairman of the Remuneration Committee

 

24 May 2005

 

20

Attachment 3

 

Directors’ interests in ScottishPower shares

 

     Ordinary shares
    Share options
(Executive¹)
    Share options (Sharesave)
    Long Term Incentive Plan
     31.3.05
   

1.4.04

(or date of
appointment,
if later)

    31.3.05
   

1.4.04

(or date of
appointment,
if later)

    31.3.05
   

1.4.04

(or date of
appointment,
if later)

    31.3.05
   

1.4.04 (or date of

appointment, if

later)

                       **Vested
    *Potential
    **Vested
    *Potential

Charles Miller Smith

    11,000    11,000    —      —      —      —      —      —      —      —  

Vicky Bailey (appointed 1 June 2004)

    —      —      —      —      —      —      —      —      —      —  

Euan Baird

    114,363    114,363    —      —      —      —      —      —      —      —  

Donald Brydon

    3,000    3,000    —      —      —      —      —      —      —      —  

Philip Carroll

    4,000    4,000    —      —      —      —      —      —      —      —  

Nolan Karras

    42,446    39,297    —      —      —      —      —      —      —      —  

Nick Rose

    5,395    5,128    —      —      —      —      —      —      —      —  

Nancy Wilgenbusch (appointed 1 June 2004)

    508    —      —      —      —      —      —      —      —      —  

Ian Russell

    •128,280    127,376    1,206,427    844,192    5,290    5,290    58,047    367,006    21,217    323,243

Charles Berry

    •41,712    23,506    628,407    422,884    2,941    2,941    0    195,279    11,968    161,734

Judi Johansen

    103,331    88,960    496,600    898,000    —      —      0    166,289    —      86,627

Simon Lowth

    17,710    —      220,937    —      —      —      0    82,851    —      —  

David Nish

    •36,415    13,964    738,171    517,234    —      2,509    0    230,230    10,880    197,602

 

None of the directors has an interest in ordinary shares which is greater than 1% of the issued share capital of the company.

 

¹ Includes options granted under the Executive Share Option Plan 2001 and, where applicable, the PacifiCorp Stock Incentive Plan.

 

* These shares represent, in each case, the maximum number of shares which the directors may receive, dependent on the satisfaction of performance criteria as approved by shareholders in connection with the Long Term Incentive Plan.

 

** These shares represent the number of shares the directors are entitled to receive when the LTIP award becomes exercisable calculated according to the performance criteria measured over the three-year performance period.

 

• These shares include the number of shares which the directors hold in the Employee Share Ownership Plan, shown below.

 

     Free shares
    Partnership shares
    Matching shares
    Dividend shares
    Total
    

31.3.05

    1.4.04
        31.3.05    
        1.4.04    
    31.3.05
    1.4.04
    31.3.05
    1.4.04
    31.3.05
    1.4.04

Ian Russell

    50    50    1,580    1,210    1,580    1,210    430    266    3,640    2,736

Charles Berry

    50    50    1,580    1,210    1,580    1,210    430    266    3,640    2,736

David Nish

    50    50    1,580    1,210    1,580    1,210    430    266    3,640    2,736

 

Between 31 March 2005 and 19 May 2005, Ian Russell, Charles Berry and David Nish each acquired 60 Partnership shares and 60 Matching shares as part of the regular monthly transactions of the Employee Share Ownership Plan; and Judi Johansen, Nolan Karras and Nancy Wilgenbusch acquired 394.0877, 30.8167 and 30.8167 ScottishPower ADSs (1,577, 123 and 123 Ordinary shares) respectively as part of the PacifiCorp Compensation Reduction Plan. Additionally, 1,225 ADSs (4,900 ordinary shares) held by Judi Johansen in the form of Unvested Restricted Stock in the PacifiCorp Stock Incentive Plan, vested and became non-forfeitable on 24 April 2005 and, in accordance with the deferral election executed by Judi Johansen, were all immediately transferred into the PacifiCorp Compensation Reduction Plan. Otherwise, there have been no changes to the directors’ interests between 31 March 2005 and 19 May 2005.

 

1

Attachment 4

 

Affiliated Services Detail

For the Fiscal Year 2004

                 
                
PacifiCorp Environmental Remediation   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
1040         

Components

         

Labor

    699000    100.00    215,310.85  

Semi Tractor

    620025    0.00    0.00  

Worker’s Comp & Occ Injuries

    690001    0.00    (294.47 )

Current Pension

    690002    0.00    29,377.08  

AD&D

    690004    0.00    125.82  

Admin Costs for 401K Program

    690009    0.00    1,543.47  

Pension Admin

    690010    0.00    912.81  

Current FAS 106

    690011    0.00    27,907.47  

Non-Current FAS106

    690012    0.00    0.00  

FAS 112

    690013    0.00    2,386.91  

Unused Leave

    690016    0.00    5,486.46  

Other Salary Overhead Assessment

    690019    0.00    2,256.13  

LTD Assessments

    690021    0.00    2,390.00  

Management Fee

    690005    0.00    36,261.70  

Facilities Services

    690006    0.00    83,064.74  

IT Services Allocations

    690007    0.00    166,399.31  

IT Services Allocations

    690025    0.00    76,014.00  

Shared Services Chargebacks

    690026    0.00    84,181.80  

PC Supporting Services

    690031    0.00    17,778.60  

CBS Accounting Services

    690032    0.00    17,555.04  

PERCO Service Revenue

    364000    1,295,142.88    0.00  
         
  

Sub-total

         1,295,242.88    768,657.72  

Interwest Mining

2010

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
        
        

Labor

    699000    235,544.40    87,060.86  

Worker’s Comp & Occ Injuries

    690001    0.00    (993.87 )

Current Pension

    690002    0.00    99,147.75  

AD&D

    690004    0.00    424.78  

Admin Costs for 401K Program

    690009    0.00    5,209.33  

Pension Admin

    690010    0.00    3,080.69  

Current FAS 106

    690011    0.00    94,187.61  

Non-Current FAS106

    690012    0.00    0.00  

FAS 112

    690013    0.00    8,055.93  

Unused Leave

    690016    0.00    18,516.79  

Other Salary Overhead Assessment

    690019    0.00    7,614.39  

SERP Assessments

    690020    0.00    72,743.44  

LTD Assessments

    690021    0.00    8,066.31  

Facilities Services

    690006    0.00    53,721.90  

IT Allocations

    690007    0.00    159,016.40  

Incentive Assessments

    690022    0.00    0.00  

IT Services Allocations

    690025    0.00    285,317.20  

Shared Services Chargebacks

    690026    0.00    28,390.20  

PC Supporting Services

    690031    0.00    32,594.10  

CBS Accounting Services

    690032    0.00    9,224.26  

Procurement

    690034    0.00    0.00  
         
  

Sub-total

         235,544.40    971,378.07  

Glenrock Coal

2030

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
        
        

Labor

    699000    0.00    0.00  

IT Allocations

    690007    0.00    0.00  

Fuel Purchased/Sold

    1201XX    0.00    0.00  
         
  

Sub-total

         0.00    0.00  

Centralia Mining

2040

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
        
        

Labor

    699000    0.00    0.00  

IT Allocations

    690007    0.00    0.00  

Fuel Purchased/Sold

    1201XX    0.00    0.00  
         
  

Sub-total

         0.00    0.00  

Energy West Mining

2050

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
        
        

Labor

    699000    0.00    624.60  

IT Allocations

    690007    0.00    0.00  

PC Supporting Services

    690031    0.00    0.00  

Fuel Purchased/Sold

    1201XX    120,589,283.35    0.00  
         
  

Sub-total

         120,589,283.35    624.60  

 

Affi Int Detail FY 2004

 

1

Affiliated Services Detail

For the Fiscal Year 2004

                 
                
PacifiCorp Group Holdings   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
3000, 4350, 4900         

Components

         

Labor

    699000    0.00    215,685.65  

Facilities Services

    690006    0.00    10,803.25  

IT Allocations

    690007    0.00    16,611.95  

SERP Assessments

    690020    0.00    0.00  

LTD Assessments

    690021    0.00    0.00  

IT Services Allocations

    690025    0.00    12,710.52  

Shared Services Chargebacks

    690026    0.00    23,305.39  

CBS Accounting Services

    690032    0.00    4,349.72  
         
  

Sub-total

         0.00    283,466.48  

PacifiCorp Financial Services

3500, 3510, 3520

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
        
        

Labor

    699000    0.00    77,532.56  

Management Fee

    690005    0.00    177,796.70  

Facilities Services

    690006    0.00    23,482.50  

IT Allocations

    690007    0.00    13,573.65  

LTD Assessments

    690021    0.00    0.00  

Incentive Assessment

    690022    4,500.00    0.00  

PC Supporting Services

    690031    0.00    2,963.10  

IT Services Allocations

    690025    0.00    2,848.80  

Shared Services Chargebacks

    690026    0.00    636.45  

CBS Accounting Services

    690032    0.00    19.38  
         
  

Sub-total

         4,500.00    298,853.14  

PacifiCorp Power Marketing

4000

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
        
        

Labor

    699000    83.22    3,957,984.24  

Management Fee

    690005    0.00    585,876.20  

Facilities Services

    690006    0.00    0.00  

IT Allocations

    690007    0.00    820,700.09  

SERP Assessments

    690020    0.00    0.00  

LTD Assessments

    690021    0.00    0.00  

IT Services Allocations

    690025    0.00    1,436,083.46  

PC Supporting Services

    690031    0.00    66,064.50  

CBS Accounting Services

    690032    0.00    8,774.78  

Shared Services Chargebacks

    690026    0.00    145,634.93  

T-PPM Long-term Wheeling

    498803    0.00    3,297,384.90  

T-PPM Imbalance Settlements

    498805    0.00    (94,364.73 )

Interco Transmission Line Loss Revenue

    302701    0.00    169,881.88  

Interco Transmission Firm Wheeling Revenue

    302801    0.00    749,250.00  

Interco Transmission Non-Firm Wheeling Revenue

    302802    0.00    23,243.20  

Interco Purchased Power Imbalance

    505901    0.00    254,583.31  

Corporate Legal

    500850    0.00    0.00  

Rent Expense

    547851    0.00    0.00  
         
  

Sub-total

         83.22    11,421,096.76  

Klamath Energy

4003

Components

    SAP Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    BY UTILITY
TO AFFILIATE
-SERVICES
  

Labor

    699000    0.00    0.00  

Management Fee

    690005    0.00    0.00  

Facilities Services

    690006    0.00    0.00  

CBS Accounting Services

    690032    0.00    0.00  
         
  

Sub-total

         0.00    0.00  

Klamath Generation

4004

Components

    SAP Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    BY UTILITY
TO AFFILIATE
-SERVICES
  

Labor

    699000    0.00    0.00  

Management Fee

    690005    0.00    0.00  

Facilities Services

    690006    0.00    0.00  

CBS Accounting Services

    690032    0.00    0.00  
         
  

Sub-total

         0.00    0.00  

West Valley Leasing

4005

Components

    SAP Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    BY UTILITY
TO AFFILIATE
-SERVICES
  

Rent Expense

    547851    17,005,015.52    0.00  
         
  

Sub-total

         17,005,015.52    0.00  

West Valley Generation

4006

Components

    SAP Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    BY UTILITY
TO AFFILIATE
-SERVICES
  

Labor

    699000    0.00    0.00  

Management Fee

    690005    0.00    0.00  

Facilities Services

    690006    0.00    0.00  

CBS Accounting Services

    690032    0.00    0.00  
         
  

Sub-total

         0.00    0.00  

 

Affi Int Detail FY 2004

 

2

Affiliated Services Detail

For the Fiscal Year 2004

               

Enstor, Inc.

4008

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    0.00

Management Fee

    690005    0.00    0.00

Facilities Services

    690006    0.00    0.00

CBS Accounting Services

    690032    0.00    0.00
         
  

Sub-total

         0.00    0.00
                

Enstor Operating Co. LLC

4017

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    2,271.41

Management Fee

    690005    0.00    0.00

Facilities Services

    690006    0.00    0.00

IT Allocations

    690007    0.00    14,034.90

IT Services Allocations

    690025    0.00    39,953.10

Shared Services Chargebacks

    690026    0.00    16,811.30

CBS Accounting Services

    690032    0.00    663.30
         
  

Sub-total

         0.00    73,734.01

Pacific Wind Dev., LLC

4020

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    2,145.00

Management Fee

    690005    0.00    0.00

Facilities Services

    690006    0.00    0.00

CBS Accounting Services

    690032    0.00    0.00
         
  

Sub-total

         0.00    2,145.00

PPM Colorado Wind Ventures

4028

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    577.15
         
  

Sub-total

         0.00    577.15

PacifiCorp Trans

4100

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    20,104.66

Management Fee

    690005    0.00    3,282.28

IT Allocations

    690007    0.00    362.15

Vehicle Lease Assessment

    690024    0.00    0.00

IT Services Allocations

    690025    0.00    2,018.80

Shared Services Chargebacks

    690026    0.00    345.05

CBS Accounting Services

    690032    0.00    19.38
         
  

Sub-total

         0.00    26,132.32

PacifiCorp Dev Crp Gen-TR

4760

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    0.00
         
  
          0.00    0.00

Pacificorp Energy Ventures, Inc.

4800

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    0.00
         
  
          0.00    0.00

PacifiCorp Holdings Inc

5000

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    32,082.87
         
  

Sub-total

         0.00    32,082.87

Pacific Klamath Energy

5320

Components

   

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

        
        

Labor

    699000    0.00    1,369.93

Management Fee

    690005    0.00    42,044.65

IT Allocations

    690007    0.00    32,061.30

LTD Assessments

    690021    0.00    0.00

IT Services Allocations

    690025    0.00    131,455.97

PC Supporting Services

    690031    0.00    1,869.75

CBS Accounting Services

    690032    0.00    1,443.45

ROW/Property Mgt Allocation

    690029    0.00    0.00

Shared Services Chargebacks

    690026    0.00    21,997.85
         
  

Sub-total

         0.00    232,242.90

 

Affi Int Detail FY 2004

 

3

Affiliated Services Detail

For the Fiscal Year 2004

                     

Pacific Minerals Inc. / Bridger Coal

N/A

Components

        SAP Acct
   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  

Fuel Purchased/Sold

        1201XX    65,665,615.10    0.00  

Benefits, Mgmt Fee, & Misc. Billings

        116010    0.00    14,833,277.95  

Royalty Billings

        116011    0.00    0.00  
             
  

Sub-total

             65,665,615.10    14,833,277.95  

Trapper Mining

N/A

Components

       

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
          
          

Fuel Purchased/Sold

        1201XX    8,132,289.64    0.00  
             
  

Sub-total

             8,132,289.64    0.00  

PacifiCorp Foundation

N/A

Components

       

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
          
          

Labor

        116020    0.00    179,093.60  

Benefits

        116020    0.00    17,553.01  

Misc. Other Expenses

        116020    0.00    97,640.07  
             
  

Sub-total

             0.00    294,286.68  

ScottishPower - N/A

N/A

Components

       

SAP Acct

   

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
          
          

Labor

        116120    0.00    720,085.81  

Labor

        210720    7,817,615.30    0.00  

Misc. Other Expenses

        116120    0.00    0.00  
             
  

Sub-total

             7,817,615.30    720,085.81  

Grand Summary

            

BY AFFILIATE

TO UTILITY

-SERVICES

   

BY UTILITY

TO AFFILIATE

-SERVICES

  
          
          

Labor

        699000    235,727.62    4,612,749.78  

Vehicle/Equipment

   b    699010    0.00    0.00  

Worker’s Comp & Occ Injuries

   b    690001    0.00    (1,288.34 )

Current Pension

   b    690002    0.00    128,524.83  

AD&D

   b    690004    0.00    550.60  

Admin Costs for 401K Program

   b    690009    0.00    6,752.80  

Pension Admin

   b    690010    0.00    3,993.50  

Current FAS 106

   b    690011    0.00    122,095.08  

Non-Current FAS106

   b    690012    0.00    0.00  

FAS 112

   b    690013    0.00    10,442.84  

Unused Leave

   b    690016    0.00    24,003.25  

Other Salary Overhead Assessment

   c    690019    0.00    9,870.52  

LTD Assessments

   b    690021    0.00    10,456.31  

Management Fee

   c    690005    0.00    845,261.53  

Facilities Services

   c    690006    0.00    171,072.39  

IT Network & Phone Services

   c    690007    0.00    1,222,759.75  

SERP Assessments

   b    690020    0.00    72,743.44  

Incentive Assessments

   c    690022    4,500.00    0.00  

Vehicle Lease Assessments

   c    690024    0.00    0.00  

IT Services Allocations

   c    690025    0.00    1,986,401.85  

Shared Services Chargebacks

   c    690026    0.00    321,302.97  

ROW/Property Mgt Allocation

   c    690029    0.00    0.00  

PC Supporting Services

   c    690031    0.00    121,270.05  

CBS Accounting Services

   c    690032    0.00    42,049.31  

Procurement

   c    690034    0.00    0.00  

T-PPM Long-term Wheeling

        498803    0.00    3,297,384.90  

T-PPM Imbalance Settlements

        499805    0.00    (94,364.73 )

Interco Transmission Line Loss Revenue

        302701    0.00    169,881.88  

Interco Transmission Firm Wheeling Revenue

        302801    0.00    749,250.00  

Interco Transmission Non-Firm Wheeling Revenue

        302802    0.00    23,243.20  

Interco Purchased Power Imbalance

        505901    0.00    254,583.31  

Corporate Legal

        500850    0.00    0.00  

Rent Expense

        547581    17,005,015.52    0.00  

Fuel Purchased/Sold

        1201XX    194,387,188.09    0.00  

Benefits, Mgmt Fee, & Misc. Billings

        116010    0.00    14,833,277.95  

Royalty Billings

        116011    0.00    0.00  

Pacificorp Foundation

        116020    0.00    294,286.68  

Scottish Power - A/R

        116120    0.00    720,085.81  

Scottish Power - A/P

        210720    7,817,615.30    0.00  

PERCO Service Revenue

        364000    1,295,142.88    0.00  
             
  

Total

             220,745,189.41    29,958,641.46  

Total of affiliates

             220,745,189.41    29,958,641.46  
              0.00    0.00  

 

Affi Int Detail FY 2004

 

4

Affiliated Services Detail

For the Fiscal Year 2005

                    

PacifiCorp Environmental Remediation

1040

Components

    SAP Acct
    FERC Acct *
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    9220000    1,035.00    231,300.70

Worker’s Comp & Occ Injuries

    690001    9200000         1,884.75

Current Pension

    690002    9200000         57,132.26

Management Fee

    690005    9290000         29,484.59

Facilities Services

    690006    9290000         36,260.00

IT Services Allocations

    690007    9290000         53,825.00

Admin Costs for 401K Program

    690009    9200000         1,443.97

Pension Admin

    690010    9200000         553.59

Current FAS 106

    690011    9200000         27,399.39

FAS 112

    690013    9200000         9,457.98

Unused Leave

    690016    9200000         2,690.75

Other Salary Overhead Assessment

    690019    9200000         964.71

LTD Assessments

    690021    9200000         2,661.28

IT Services Allocations

    690025    9290000         24,845.00

Shared Services Chargebacks

    690026    9290000         40,945.00

PC Supporting Services

    690031    9290000         15,105.00

Intercompany Environmental Serv Expense

    547050    5800000    1,278,867.83    0.00
              
  

Sub-total

              1,279,902.83    535,953.97

Interwest Mining

2010

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    5570000    26,807.20    73,566.22

Worker’s Comp & Occ Injuries

    690001    5570000         1,037.24

Current Pension

    690002    5570000         192,821.47

Admin Costs for 401K Program

    690009    5570000         4,512.42

Pension Admin

    690010    5570000         1,729.94

Current FAS 106

    690011    5570000         85,623.18

FAS 112

    690013    5570000         29,556.05

Unused Leave

    690016    5570000         9,081.30

Other Salary Overhead Assessment

    690019    5570000         3,014.73

LTD Assessments

    690021    5570000         8,316.50
              
  

Sub-total

              26,807.20    409,259.05

Energy West Mining

2050

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    9220000    0.00    0.00

IT Allocations

    690007    9290000         0.00

PC Supporting Services

    690031    9290000         0.00

Fuel Purchased/Sold

    1201XX    1510000    135,668,796.88    0.00
              
  

Sub-total

              135,668,796.88    0.00

 

5

PacifiCorp Group Holdings

3000, 4350

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
   

BY UTILITY

TO AFFILIATE
-SERVICES

  

Labor

    699000    9220000    0.00    71,665.90  

Facilities Services

    690006    9290000         0.00  

IT Allocations

    690007    9290000         0.00  

IT Services Allocations

    690025    9290000         10,416.00  

Shared Services Chargebacks

    690026    9290000         17,569.00  
              
  

Sub-total

              0.00    99,650.90  

PacifiCorp Development Co

3100

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
   

BY UTILITY

TO AFFILIATE
-SERVICES

  

Labor

    699000    9220000         0.00  

Facilities Services

    690006    9290000         0.00  

Shared Services Chargebacks

    690026    9290000         90.00  

PC Supporting Services

    690031    9290000         0.00  
              
  

Sub-total

              0.00    90.00  

PacifiCorp Financial Services

3500

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
   

BY UTILITY

TO AFFILIATE
-SERVICES

  

Labor

    699000    9220000    0.00    101,588.22  

Management Fee

    690005    9290000         129,956.47  

Facilities Services

    690006    9290000         35,050.00  

IT Allocations

    690007    9290000         8,360.00  

IT Services Allocations

    690025    9290000         (216.00 )

Shared Services Chargebacks

    690026    9290000         877.00  

PC Supporting Services

    690031    9290000         1,600.00  
              
  

Sub-total

              0.00    277,215.69  

PacifiCorp Power Marketing

4000

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES
  

Labor

    699000    9220000    10,221.85    4,280,716.86  

Management Fee

    690005    9290000         1,104,960.59  

Facilities Services

    690006    9290000         0.00  

IT Allocations

    690007    9290000         1,194,198.00  

IT Services Allocations

    690025    9290000         1,254,472.00  

Shared Services Chargebacks

    690026    9290000         271,625.00  

PC Supporting Services

    690031    9290000         81,567.00  

T-PPM Long-term Wheeling

    498803    4569000    0.00    0.00  

T-PPM Imbalance Settlements

    498805    4569000    0.00    0.00  

Interco Transmission Line Loss Revenue

    302701    4471300    0.00    888,427.79  

Interco Transmission Firm Wheeling Revenue

    302801    4561600    0.00    3,462,022.93  

Interco Transmission Non-Firm Wheeling Revenue

    302802    4566500    0.00    768,691.36  

Interco Purchased Power Imbalance

    505901    5556700    0.00    706,609.70  

PPW-PPM InterCo Recruiting Fees

    547820    9210000    0.00    97,836.80  

PPM Sub Lease Payments (Liberty Center)

    547850    9310000    269,761.98    0.00  
              
  

Sub-total

              279,983.83    14,111,128.03  

 

6

West Valley Leasing

4005

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Rent Expense

    547851    5500000    17,045,103.76    0.00
              
  

Sub-total

              17,045,103.76    0.00

West Valley Generation

4006

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    9220000    0.00    1,365.00

Management Fee

    690005    9290000         0.00
              
  

Sub-total

              0.00    1,365.00

Enstor Operating Co. LLC

4017

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    9220000    0.00    0.00

IT Allocations

    690007    9290000         135,720.00

IT Services Allocations

    690025    9290000         20,322.00

Shared Services Chargebacks

    690026    9290000         27,688.00

PC Supporting Services

    690031    9290000         9,234.00
              
  

Sub-total

              0.00    192,964.00

PPM Colorado Wind Venture

4028

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    9220000    0.00    3,069.76
              
  

Sub-total

              0.00    3,069.76

PacifiCorp Trans

4100

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    9220000    0.00    0.00

Management Fee

    690005    9290000    0.00    2,151.18

IT Allocations

    690007    9290000    0.00    870.00

IT Services Allocations

    690025    9290000    0.00    0.00

Shared Services Chargebacks

    690026    9290000    0.00    877.00
              
  

Sub-total

              0.00    3,898.18

PacifiCorp Holdings Inc

5000

Components

    SAP Acct
    FERC Acct
    BY AFFILIATE
TO UTILITY
-SERVICES
    BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    9220000    0.00    317,111.77
              
  

Sub-total

              0.00    317,111.77

 

7

Pacific Klamath Energy

5320

Components

    SAP Acct
    FERC Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    

BY UTILITY

TO AFFILIATE

-SERVICES

Labor

    699000    9220000    0.00     400.00

Management Fee

    690005    9290000          37,582.37

IT Allocations

    690007    9290000          26,838.00

IT Services Allocations

    690025    9290000          117,326.00

Shared Services Chargebacks

    690026    9290000          32,313.00

PC Supporting Services

    690031    9290000          1,539.00
              
 

Sub-total

              0.00     215,998.37

Pacific Minerals Inc. / Bridger Coal

N/A

Components

    SAP Acct
    FERC Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    

BY UTILITY

TO AFFILIATE
-SERVICES

Fuel Purchased/Sold

    1201XX    1510000    64,032,894.35     0.00

Benefits, Mgmt Fee, & Misc. Billings

    116010    1460000    0.00     15,485,770.18

Royalty Billings

    116011    1460000    0.00     0.00
              
 

Sub-total

              64,032,894.35     15,485,770.18

Trapper Mining

N/A

Components

    SAP Acct
    FERC Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    

BY UTILITY

TO AFFILIATE

-SERVICES

Fuel Purchased/Sold

    1201XX    1510000    8,319,376.72     0.00
              
 

Sub-total

              8,319,376.72     0.00

PacifiCorp Foundation

N/A

Components

    SAP Acct
    FERC Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    

BY UTILITY

TO AFFILIATE

-SERVICES

Labor

    500102    4265000          143,051.40

Benefits

    116020    4265000          11,185.38

Misc. Other Expenses

    116020    4265000          83,832.70
              
 

Sub-total

              0.00     238,069.48

ScottishPower UK PLC (SPUK)

N/A

Components

    SAP Acct
    FERC Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

    

BY UTILITY

TO AFFILIATE
-SERVICES

Labor

    116120    1460000    0.00     902,577.80

Group Corporate Recharge

    116120    1460000    0.00     1,995,272.54

Labor

    210720    9200000    4,160,364.39     0.00

Taxes

    210720    9200000    (736,410.73 )   0.00

Group Corporate Recharge

    210720    9302000    13,012,476.28     0.00

Group Corporate Recharge

    210720    4265000    1,866,984.48     0.00
              
 

Sub-total

              18,303,414.42     2,897,850.34

PacifiCorp Energy Canada Ltd. (PECL)

4022

Components

    SAP Acct
    FERC Acct
   

BY AFFILIATE
TO UTILITY

-SERVICES

     BY UTILITY
TO AFFILIATE
-SERVICES

Labor

    699000    9220000    0.00     83,847.80
              
 

Sub-total

              0.00     83,847.80

Total of Affiliates - FY 2005

              244,956,279.99     34,873,242.52

 

* FERC account listed represents the majority of costs. In some cases minor dollars are posted to other FERC accounts.

 

8