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) January 16, 1997
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
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ITEM 5. OTHER EVENTS
PRELIMINARY MERGER RECOMMENDATION - On January 16, 1997 Portland General
Corporation (PGC) and Enron Corp. (ENRON) received the preliminary
recommendation from the Staff of the Public Utility Commission of Oregon
(OPUC) to approve, subject to certain conditions, the companies' application
to merge. The OPUC Staff recommends an annual rate reduction for Portland
General Electric's (PGE) customers of $47.4 million, a result of several
conditions proposed by the Staff. The proposed rate reduction includes a
provision to true-up reduction amounts if certain future revenues exceed
expectations.
Staff proposed reductions consist of the following items: $11.7 million
related to PGE trading floor margins, $24.5 million related to estimated non-
franchise retail sales margins, $10 million related to administrative cost
savings and $1.2 million associated with lower natural gas fuel costs. These
reductions would remain in rates for approximately four years.
Other conditions include minimum service quality standards, cost shifting
protections, and competitive protections, most of which are similar to
conditions already in place between PGE and PGC.
PGC and ENRON are pleased the Staff has recommended approval of the merger,
however, certain of the proposed conditions raise legal, policy and monetary
issues that must be addressed. Settlement conferences are scheduled for
January 22 through 24, 1997.
For further background information regarding the proposed merger see the PGE
and PGC quarterly reports on Form 10-Q for the quarter ended September 30,
1996, and report on Form 8-K dated November 12, 1996.
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
January 17, 1997 By /S/ JOSEPH E. FELTZ
Joseph E. Feltz
Assistant Controller
Assistant Treasurer
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