SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 17, 1997
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Date of Report (Date of earliest event reported)
NORTHWEST NATURAL GAS COMPANY
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(Exact name of registrant as specified in its charter)
Oregon 0-994 93-0256722
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(State of (Commission (IRS Employer
incorporation) File Number) Identification No.)
220 NW Second Avenue, Portland, Oregon 97209
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(Address of principal executive offices)
(503) 226-4211
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Registrant's telephone number, including area code
PART II. OTHER INFORMATION
Item 5. Other Information
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The following press release was issued by Northwest Natual Gas Company on
July 17, 1997:
PORTLAND, ORE.---Northwest Natural Gas (Nasdaq National Market: NWNG) and
PacifiCorp (NYSE: PPW) announced today they are forming an alliance to jointly
market gas and energy services, and, as the market opens, electric commodity to
commercial and industrial customers in Oregon and Washington.
The alliance is aimed at meeting the multiple fuel needs of commercial and
industrial customers. These customers can already choose their gas supplier, and
many are actively working to secure these same options for their electricity
supply.
Through the alliance, PacifiCorp and Northwest Natural will market gas,
electricity and energy services within as well as outside of their franchised
service areas. The companies will offer gas commodity and energy services
immediately throughout Oregon and Washington. In the future, they will also
offer electric commodity in the areas of those two states where utilities offer
pilot programs that will allow commercial and industrial customers to choose
their electricity supplier.
"By joining forces, we can offer customers more energy commodity options,
competitive prices and the ease of dealing with a local representative to meet
the customer's total energy needs," said Fred Buckman, chief executive officer
of PacifiCorp, the parent company of Pacific Power and Utah Power.
Dick Reiten, president and chief executive officer of Northwest Natural
Gas, said the alliance "allows each company to retain its independent status
while pursuing new commodity market opportunities together."
The companies will market natural gas under the Northwest Natural Gas
brand. Using a new PacifiCorp Energy Partners program, Northwest Natural will
also facilitate the sale of electricity and selected energy products and
services, such as power quality, utility management and information services and
green power, an "earth-friendly" alternative resource.
Commercial and industrial customers can already shop for gas on the open
market. Efforts are underway at both the federal and state levels to allow
consumers to choose their electricity supplier as well.
Buckman said the marketing alliance allows the companies to join strengths
without losing autonomy and without the delays of a merger. "With this approach,
we can begin offering customers more choices and benefits at the earliest
possible time," he said.
Those benefits include competitive commodity prices; greater reliability
through a regional asset base with power plants and gas storage facilities in
the Northwest; customized services; and more energy options through various
multiple fuel products and services.
The alliance brings together two strong, well-established and locally-based
companies familiar with the Northwest and the needs of customers in the region.
PacifiCorp offers an ample, low-cost power supply from a diverse resource mix;
strong wholesale relationships to meet additional customer needs; and extensive
transmission assets. Northwest Natural is one of the largest purchasers of gas
in the Northwest and the largest shipper on Northwest Pipeline. It offers
enhanced reliability through gas storage capacity located near market areas, and
has established a strong track record for successfully operating in a
deregulated, open-access environment.
"We are looking forward to teaming with Northwest Natural for many reasons,
including its strong local presence, its solid reputation and its outstanding
customer service," said Buckman.
Reiten said PacifiCorp is an attractive ally for Northwest Natural because
it is a local company with generation, transmission and distribution in the
Northwest and is "a reliable, competitive provider of local service."
Both Buckman and Reiten emphasized that while the alliance signals
cooperation between the two companies in marketing energy commodities and energy
services to commercial and industrial markets, PacifiCorp and Northwest Natural
Gas will continue to compete for customer decisions on which fuel source to use.
In forming the alliance, Northwest Natural becomes the first company to use
PacifiCorp's Energy Partners Program. PacifiCorp plans to use the program
nationwide as a vehicle for teaming up with other companies to provide
energy-related products and services.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NORTHWEST NATURAL GAS COMPANY
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Registrant
By /s/ Bruce R. DeBolt
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Senior Vice President and
Chief Financial Officer
Date: July 17, 1997
