Press Release

PUBLIC INTEREST GROUPS SUPPORT PGC AND ENRON MERGER

FOR IMMEDIATE RELEASE: Wednesday, January 8, 1997

PORTLAND -- Portland General Corporation (PGC) and ENRON announced today that 13 environmental, natural resource and public interest groups are urging the Oregon Public Utilities Commission to approve the merger between the two companies. These groups have collectively reached an agreement with PGC and ENRON, called a "Memorandum of Understanding", in which the companies made their commitments to support projects and issues that are vital to these organizations, Portland General Electric (PGE) customers and to Oregon.

ENRON, a Houston-based energy company, and PGC, the parent company of PGE are proposing a merger that must be approved by the Oregon Public Utilities Commission (PUC). In this proceeding, public interest groups have sought assurances that the companies would remain committed to environmental and public interest projects in Oregon. The agreement formalizes the companiesí long-standing commitments and provides the groups with the assurances they sought that the merger, with these proposals, would be beneficial to the public. The agreement affirms that the PUC will determine other financial benefits associated with the merger in a public proceeding.

"We worked closely with these groups over the last few months to reach a common understanding of their issues and concerns. After listening to each othersí concerns, PGC and ENRON are able to offer these groups a package of measures that gives them the assurances they needed to be able to support our merger. The agreement recognizes that environmental stewardship and social responsibility can coexist with competition," said Alvin Alexanderson, PGEís Senior Vice-President.

"This agreement offers these groups our assurance that the merger with PGC will serve the public interest in Oregon," said Geoff Roberts, managing director of ENRON, responsible for merger transition. ENRON has a long-standing commitment to environmental and public interest projects, but we are still relatively unknown in Oregon. We will collaborate with these groups in the years to come on issues that matter to Oregonians. These organizations have strongly-held convictions about Oregonís future. We will look to them for help in advancing PGCís well-established support of quality of life issues."

If the merger is completed, among other things, PGE and ENRON will acquire renewable resources, secure funding for conservation and investigate and propose rate structures for residential customers and low-income consumers. In addition, the companies will fund a variety of habitat restoration projects on the Deschutes, Clackamas and Sandy Rivers, where PGE has hydroelectric generation. "These organizations want environmental enhancement projects that can show measurable improvements to habitat and native species. We share the partiesí interest in projects that will show real results as soon as possible", said PGCís Alexanderson.

The groups that are parties to this agreement, in addition to PGC and ENRON are: Natural Resources Defense Council, Northwest Conservation Act Coalition, The Nature Conservancy of Oregon, Northwest Environmental Advocates, Renewable Northwest Project, Oregon Citizensí Utility Board, Oregon Trout, Trout Unlimited, Native Fish Society, American Rivers, Oregon Energy Coordinatorsí Association and Community Action Directors of Oregon. These groups are now urging that the PUC give prompt approval to the merger. The PUC is expected to make its decision on March 17, 1997.

ENRON, one of the worldís largest integrated natural gas and electricity companies with approximately $15 billion in assets, operates one of the largest natural gas transmission systems in the world; is the largest purchaser and marketer of natural gas and the largest non-regulated marketer of electricity in North America; markets natural gas liquids worldwide; manages the largest portfolio of fixed-price natural gas risk management contracts in the world; is among the leading entities arranging new capital to the energy industry; owns a majority interest in Enron Oil & Gas Company, one of the largest independent (non-integrated) exploration and production companies in the United States; owns a majority interest in 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 is traded under the ticker symbol, "ENE."

Major Points of Portland General/ENRON Agreement with Public Interest Groups

1. A confirmation of PGE's commitment to renewable resources, including the support and filing for a systems benefit charge;
2. A confirmation of ENRON's commitment to file a disaggregation plan for PGE within 60 days of merger completion. This disaggregation plan would separate PGE's distribution and transmission wires business from its generation and power purchase and include a stranded cost resolution plan;
3. PGE will design new products and services targeted to reach at least 5,000 low-income families and reduce annual bills by an estimated $500,000 to $1 million per year;
4. Over the next two to five years, PGE will provide financial and organizational commitments to a number of important river, fish and other environmental efforts represented by the interested parties;
5. PGE also will establish a fund to implement environmental research projects in the Deschutes, Sandy and Clackamas River basins where PGE's hydroelectric projects are located;
6. ENRON and PGC will fund an independent study on marginal cost analysis to address potential concerns that restructuring and open access may inadvertently result in unfair cost allocations to residential customers;
7. As PGE files to relicense its hydroelectric projects over the next decade, the company will provide opportunities for the interested parties to participate in discussions with resource agencies in order to enhance and mitigate fish and wildlife issues involved with PGE projects;
8. The PGC/ENRON Foundation will make a $50,000 grant in 1997 to the organization sponsoring the best proposal to develop increased volunteerism or other sources for funding energy bill-paying assistance.

For additional information please contact:

Gary Foster

(713) 853-4527