Santa Clara, Calif. – June 3, 2005 – Silicon Valley Power is a step ahead of the game on renewable energy. With reductions in its large contract with the Western Area Power Administration (WAPA) last year and the expiration of its arrangement with the Bonneville Power Administration in September 2005, SVP will purchase wind energy from Portland, Oregon-based PPM Energy to bolster its already substantial renewable energy portfolio. Deliveries under the contract are expected to begin January 1, 2006.

PPM Energy, which has a portfolio of more than 830 megawatts of wind power currently in operation in seven states, will deliver wind power at a fixed cost that is competitive with natural gas resources. As a member of the Modesto-Santa Clara-Redding Public Power Agency (M-S-R), Santa Clara's SVP will receive up to 75 megawatts for the next 20 years under this new contract. One megawatt is enough to serve 750 to 1,000 homes.

“Santa Claras 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 Jonas, 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.”

This renewable power purchase is expected to offset non-renewable purchases from other California market energy sources.