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Company Reaches Agreement with Oregon Electric to Terminate Sale Agreement April 06, 2005 HOUSTON -- Enron Corp. announced today that it has reached an agreement with Oregon Electric Utility Company, LLC, a company backed by Texas Pacific Group, to terminate the sale agreement for Portland General Electric Company (PGE) following the Oregon Public Utility Commission’s denial of Oregon Electric’s application to buy the utility. Enron intends to move forward with plans to issue PGE common stock to creditors in accordance with Enron’s approved bankruptcy plan. As part of this process, current PGE common stock would be cancelled and new common stock would be issued. Initially, at least 30 percent of the new PGE common stock would be issued to creditors, with the remainder held in a reserve and released to creditors determined to hold allowed claims in accordance with Enron’s bankruptcy plan. Enron and PGE intend to apply for a listing of the new PGE stock on a national securities exchange such as the NYSE or NASDAQ. Once the PGE common stock is issued, owners who are not affiliates of PGE will then be able to sell it in the open market. “We are moving forward with this plan because we believe it maximizes value to Enron’s creditors and will help put an end to the uncertainty surrounding the utility’s ownership,” said Stephen Cooper, Enron’s interim CEO and chief restructuring officer. “The PGE management team and I are confident that PGE will continue to operate successfully as a publicly-traded entity.” Cooper added, “It is clear that recent expansions by PGE, including the highly-efficient power plant being built at Port Westward, add to the utility’s value. In addition, a number of the issues negatively affecting PGE have been resolved, providing a clearer path forward for PGE.” Pursuant to the Enron bankruptcy plan that was approved by the Bankruptcy Court and which became effective on November 17, 2004, Enron’s Board of Directors will oversee the process of issuing common stock to Enron creditors. Any issuance of new PGE common stock is subject to certain conditions and regulatory approvals such as approval by the Oregon Public Utility Commission and the U.S. Securities and Exchange Commission. Peggy Fowler, CEO and President of PGE, said, “This is a good plan for PGE's customers, employees and community. As we move forward with plans to make PGE a publicly-traded utility headquartered in Oregon, our focus remains on delivering safe, reliable power and providing top-notch customer service at a reasonable cost.” In accordance with its ongoing efforts to maximize the value of the estate, Enron will continue to consider credible offers to purchase Enron’s common stock in PGE. About Portland General Electric PGE, headquartered in Portland, Oregon, is a fully integrated electric utility that serves more than 765,000 residential, commercial and industrial customers in Oregon. Visit PGE on the Web at www.PortlandGeneral.com. Enron’s Internet address is www.enron.com. CAUTIONARY STATEMENT:
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