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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
Date of Report (Date of earliest event reported) March 29, 1996
Registrant; State of Incorporation; IRS Employer
Commission File Number Address; and Telephone Number Identification
No.
1-5532 PORTLAND GENERAL CORPORATION 93-0909442
(an Oregon Corporation)
121 SW Salmon Street
Portland, Oregon 97204
(503) 464-8820
1-5532-99 PORTLAND GENERAL ELECTRIC COMPANY 93-0256820
(an Oregon Corporation)
121 SW Salmon Street
Portland, Oregon 97204
(503) 464-8000
121 S.W. Salmon Street, Portland, Oregon 97204
(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code 503-464-8820<PAGE>
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Item 5. Other Events
Settlement Reached - On March 29, 1996 Portland General Electric Company (PGE)
and Southern California Edison (SCE) reached a settlement in a complaint filed
by SCE regarding a long-term power sale and exchange agreement. The complaint
filed in August 1994 claimed that PGE's closure of the Trojan Nuclear Plant
allowed SCE to terminate the contract. In August 1995, the Oregon State Circuit
Court ruled that the plant's closure did not provide a basis for termination of
the agreement. Rather than proceed with an appeal process, the utilities
entered into mediation which resulted in a settlement (Termination Agreement) to
amend and ultimately terminate the long-term contract. If approved by the
Federal Regulatory Energy Commission (FERC) and the California Public Utility
Commission (CPUC), the Termination Agreement will release all previous claims
asserted in the legal dispute.
PGE and SCE entered into the 25-year power sale and exchange agreement in July
1986 (Power Agreement). In exchange for payments by SCE, PGE makes firm
capacity and associated energy from its system available to SCE, provides
preferential access to economy energy and engages in a seasonal capacity and
energy exchange with SCE. Under the Termination Agreement both companies have
agreed to amend the Power Agreement to continue the preferential access to
economy energy and capacity portion of the contract, but suspend the seasonal
exchange. Once FERC approval is obtained, the amended Power Agreement will
terminate at the end of the calendar year in which the CPUC approves the
settlement in exchange for the termination payments discussed below. Upon
termination PGE would no longer provide service of any kind under either the
Power Agreement or the Termination Agreement. The regulatory approval process
is not expected to extend beyond 1997.
Until the amended Power Agreement is terminated, SCE will continue to make
annual payments of $16.9 million to PGE as set forth under the terms of the
Power Agreement. Upon termination, the SCE annual payments under the
Termination Agreement will be $15 million through 1999 and $32 million from 2000
through 2002. The Power Agreement was scheduled to expire at year-end 2010.
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on their behalf by the
undersigned hereunto duly authorized.
Portland General Corporation
Portland General Electric Company
April 3, 1996 By /s/ Joseph E. Feltz
Joseph E. Feltz
Assistant Controller
Assistant Treasurer
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