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FOR IMMEDIATE RELEASE: Friday, September 20, 1996
HOUSTON -- Enron Corp. announced today that it has filed an application with the Federal Energy Regulatory Commission (FERC) 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. As was indicated at that time, Enron and PGE intended to submit the filing with FERC as required by Section 203 of the Federal Power Act.
“This first-of-its-kind merger brings together the strength of a diversified energy company with an accomplished record in marketing wholesale natural gas and electricity with one of the most successful, low-cost electric utilities in the country,” said Kenneth L. Lay, chairman and CEO, Enron Corp. “I am confident that the merger of Enron and PGC moves the FERC closer to its goal of a competitive electric utility industry.”
“Our years of experience in meeting the electricity needs of industrial, commercial, and residential customers, combined with the innovation, financial strength and international energy experience of Enron, will enable us to compete in the emerging deregulated market,” said Ken L. Harrison, chairman and CEO, PGC and PGE. “We are optimistic this merger will pass the Commission’s criteria.”
Under the Enron/PGC merger proposal, the PGE management team will remain in place and PGE will remain headquartered in Portland.
“Instead of following the current utility merger trend to combine adjacent service areas or facilities, we will capitalize on the convergence of the natural gas and electric markets,” Lay said. “The new company will be the prototype for the future of the entire electric industry. This transaction will allow us to add transmission and distribution capabilities and diversify our fuel resources to include gas, oil, coal, hydro and renewables. We will be able to offer consumers more choices and better products and services at lower costs.”
“The commissioners at FERC have opened the door to deregulation, which will benefit every user of electricity,” said Harrison. “Competition means lower prices and better service to customers, whether you’re a manager of a factory, a small business owner or a residential user trying to meet every month’s budget. This merger will create a company committed to being the leader in supplying innovative and competitively priced electrical service to everyone.”
The merger between Enron and PGC also requires approval from shareholders of both companies and from the Oregon Public Utility Commission (OPUC). The request for approval from OPUC was filed August 30.
Enron Corp., one of the world’s largest integrated natural gas and electricity 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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