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Region's Largest Renewable Biomass Energy Project Announced

Click Here for a PDF version of this press release.

April 24, 2008

Tacoma, WA - Simpson Tacoma Kraft Company, LLC announced today a new project to produce renewable biomass energy at its pulp and paper mill in Tacoma, WA. Simpson will sell the project output to Portland, Ore., based PPM Energy. Simpson is investing approximately $100 million to build the project of which $20 million will be in new jobs for construction of the facility. The project will employ cogeneration technology to produce two forms of energy (electricity and steam) from one source of renewable fuel.

"We are excited about our new venture in renewable energy. We have a long track record of investing in our business and the environment and see this project as a continuation of this commitment to our community," said Ray Tennison, President of Simpson.

The project will generate up to 55 megawatts of renewable biomass energy, with commercial operation scheduled for August 2009. The power output from the energy facility is equivalent to that needed to power 40,000 homes. According to the USA Biomass Power Producers Alliance, the facility will be the largest single cogeneration renewable energy project built in the U.S. in the last decade.

Tacoma Power partnered with Simpson to define the infrastructure and power needs to support the cogeneration facility. The utility, which provides power to Simpson's operations in Tacoma, will provide transmission service to PPM Energy for the renewable power purchased from Simpson.

PPM Energy plans to integrate the output of Simpson's project with its growing portfolio of clean and renewable resources. PPM will offer the energy produced to utility customers throughout the West Coast.

"We are excited about this opportunity to bring Simpson's extensive experience in wood products and biomass fuel together with PPM's preeminent position in wholesale energy markets and Tacoma Power's quality infrastructure to deliver renewable energy at a time when it is needed most," said Peter van Alderwerelt, Senior Vice President at PPM Energy.

About Simpson

Simpson, Headquartered in Tacoma, Washington, is a forest products company in operation since 1890. Simpson operates 5 wood product manufacturing plants, one pulp and paper facility, and two door manufacturing plants in Washington State, along with 2 wood product manufacturing plants in South Carolina and one in Georgia.

About PPM Energy

PPM Energy, headquartered in Portland, Oregon, is one of North America's leading wind power providers with more than 2,000 MW of wind power in operation, plus over 800 MW of clean gas-fired generation and over 50 BCF of gas storage. PPM is part of Iberdrola Renewables, the leading wind energy provider in the world, with more than 7,700 MW of wind power online worldwide and with a pipeline of more than 42,000 MW of wind power. For more information, visit www.ppmenergy.com.

About Tacoma Power

Tacoma Power provides electric service to approximately 160,000 customers in Tacoma and Pierce County. It owns and operates seven hydroelectric projects, 2,300 miles of electric transmission and distribution lines, and the Click! fiber-optic broadband network.

CONTACTS:

    For Simpson Tacoma Kraft Company LLC: Dave McEntee, 253-779-6405
    For PPM Energy: Art Sasse, Director, Communications & Brand, Iberdrola Renewables, 503-796-7740
    For PPM Energy: Paul Copleman, Media Relations, Iberdrola Renewables, 207-641-2805
    For Tacoma Power: Chris Gleason, 253-502-8222

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