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ENRON FILES FOR MERGER APPROVAL WITH FEDERAL ENERGY REGULATORY
COMMISSION
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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