SANTA CLARA, Calif. – November 29, 2005 – Silicon Valley Power (SVP), the City of Santa Clara’s municipal electric utility, is a step ahead of the game on renewable energy. To bolster its already substantial renewable energy portfolio, SVP, through the Modesto-Santa Clara-Redding Public Power Agency (M-S-R), has purchased wind energy from Portland, Oregon-based PPM Energy’s Big Horn Project. The agreement will help compensate for reductions in SVP’s large contract with the Western Area Power Administration (WAPA) last year and the expiration of its contract with the Bonneville Power Administration this year. Construction of the Big Horn project, located in Klickitat County, Wash., has started, with energy deliveries expected to begin in summer 2006.

PPM Energy, which has a portfolio of more than 1,600 megawatts of wind power currently in operation or under construction in seven states, will deliver wind power at a fixed cost that is competitive with natural gas generation. As a member of M﷓S﷓R, Santa Clara’s SVP will receive up to 105 megawatts for the next 20 years under this new contract. One megawatt of wind power produces enough energy to serve 250 to 300 homes. This renewable energy purchase is expected to offset non-renewable purchases from other California market energy sources.

“Santa Clara’s commitment to renewable energy started three decades ago, and we are really excited about the addition of these wind resources to our current power mix of 24 percent renewable,” says Junona Jones, Santa Clara Electric Utility director. “SVP’s smart investment in renewable energy has really paid off for our customers, who currently realize a savings of 30 to 40 percent over surrounding communities with more than double the amount of renewable energy.”

About Silicon Valley Power

Silicon Valley Power is the trademark adopted for use by the century-old Electric Department of the City of Santa Clara, Calif. Silicon Valley Power provides power for about 50,000 customers, including Intel, Applied Materials and National Semiconductor. It also is an active participant in the wholesale energy markets in the Western United States.