PPM Completes Alabama Gas Storage Purchase


PORTLAND, Oregon - December 19, 2007- IBERDROLA RENEWABLES's US energy business, PPM Energy today announced that its subsidiary ENSTOR, Inc., completed the acquisition of the ownership interests in the Freebird Gas Storage facility in Lamar County, Alabama.


The sellers of Freebird are Multifuels LP and Denham Capital, a global energy and commodities focused private equity firm. The transaction is valued at $164 million subject to adjustments. The natural gas storage facility has an existing working gas capacity of 7.6 billion cubic feet (BCF). The facility has the potential to be expanded up to 11.4 BCF of working gas capacity and is expected to be accretive to earnings in the first full year of ownership.


Freebird was developed by Multifuels LP, a Houston-based diversified midstream energy company. Denham provided equity financing and arranged debt financing for Freebird's development. RBC Capital Markets advised on the sale.


PPM's CEO Terry Hudgens said: "The Freebird facility is a proven asset that is located on a major natural gas transportation corridor with excellent market liquidity. The acquisition supports PPM's strategy to grow its gas storage business and to increase the geographic diversity of its owned and operated storage capacity that is held by its Enstor subsidiary."


The Freebird facility is located on the Tennessee 500 line, a major natural gas transportation pipeline from the Gulf Coast supply basins to the Northeastern US markets. The Northwest Alabama Gas District is a co-owner of the facility. The facility will provide gas storage services for natural gas distribution companies, power generators, natural gas marketers and producers.




This announcement is not an offer for sale of securities in the United States, United Kingdom, Canada, Japan or Australia or in any other jurisdiction in which offers or sales would be prohibited by any applicable law. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended and any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the company and management, as well as financial statements. IBERDROLA RENOVABLES, S.A. does not intend to register any portion of the offering of the securities in the United States or to conduct a public offering of the securities in the United States. Copies of this announcement are not being made and may not be distributed or sent into the United States.


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Although IBERDROLA RENOVABLES, S.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of IBERDROLA RENOVABLES, S.A. shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of IBERDROLA

RENOVABLES, S.A., that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements.

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