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ENRON FILES FOR MERGER APPROVAL WITH OREGON PUBLIC UTILITIES COMMISSION
FOR IMMEDIATE RELEASE: Tuesday, September 3, 1996
HOUSTON -- Enron Corp. announced today that it has filed a request with the Oregon Public Utilities Commission (OPUC) seeking authorization to merge with Portland General Corporation (PGC), the parent company of Portland General Electric (PGE).
Enron and PGC announced on July 22 that each company’s board of directors had approved a merger agreement. The OPUC filing is required by Oregon law so that OPUC can review the application to determine whether the merger serves the public interest.
“This application demonstrates to OPUC that this merger is clearly in the public interest,” said Kenneth L. Lay, chairman and CEO, Enron Corp. “Enron shares PGE’s commitment to reasonably priced, high quality, reliable electric service. In addition, Enron’s breadth of experience in energy markets worldwide, its financial strength, and its experience in competitive markets will be employed for the benefit of PGE customers.
“This is not a typical utility industry merger. The key to this particular merger is about continuity and combining the strengths of two successful companies,” said Ken L. Harrison, chairman and CEO, Portland General. “This merger does not raise many of the concerns that other mergers, both in the utility industry and other industries, have raised, such as job loss, service decline, increased market power, or loss of contact with the local community.”
Under the Enron/PGC merger proposal, the PGC management structure will remain in place and PGC will remain headquartered in Portland. A condition of the merger agreement is that PGC and Enron contribute $10 million each to the PGC philanthropy fund, for a total of $25 million (including $5 million already in the fund), with the fund to be administered by an Oregon-based board.
By law, OPUC has 19 days to act on the application. The application only requests approval of the combination of Enron with PGC and does not ask OPUC to prejudge the industry restructuring issues which are before it. In order to allow an opportunity for interested parties to comment, Enron has waived the 19-day period and substituted December 31, 1996 for final OPUC action.
The merger between Enron and PGC also requires approval from shareholders of both companies and from the Federal Energy Regulatory Commission (FERC).
Enron Corp., one of the world’s largest integrated natural gas companies with approximately $15 billion in assets, operates the largest natural gas transmission system in the Western Hemisphere and the second largest system in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; produces and markets natural gas liquids worldwide; owns 59 percent of Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns 59 percent of Enron Global Power & Pipelines L.L.C., which is owner and manager of operating power plants and natural gas pipelines around the world; and is one of the largest independent developers and producers of electricity in the world. Enron Corp. is traded under the ticker symbol, "ENE."
For additional information please contact:
Gary Foster
713-853-4527
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