HOUSTON -- Enron Corp. announced today that it has reached an agreement to settle civil claims between the company (and certain of its subsidiaries) and certain other parties related to natural gas and electricity transactions in the Western United States from 1997-2003, including claims filed in proceedings with the Federal Energy Regulatory Commission (FERC). The parties entering into the settlement agreement with Enron are Pacific Gas & Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, the People of the State of California, the California Department of Water Resources, the California Electricity Oversight Board, and the Attorneys General of the States of Oregon and Washington. Other potential Western U.S. energy market participants may determine to opt-in to the settlement at a later date.

In consideration of their dismissal and release of claims against Enron, the parties settling with Enron will receive a shared allowed unsecured bankruptcy claim of $875 million against Enron Power Marketing, Inc. (EPMI), an Enron subsidiary, and will receive distributions on such claim pursuant to Enron’s confirmed Chapter 11 Plan of Reorganization. The settling parties also will receive an assignment from Enron of up to $47.3 million in receivables and cash collateral owing to Enron. The settling parties that are governmental units will also receive a civil penalty claim against EPMI for $600 million. Enron has not admitted to any wrongdoing with respect to any matter covered in this settlement.

“This settlement represents the latest in a series of significant issues that have been resolved in Enron’s bankruptcy proceedings,” said Stephen Cooper, Enron’s interim CEO and chief restructuring officer.

Enrons Internet address is www.enron.com.

CAUTIONARY STATEMENT: Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and other statements that are other than statements of historical facts. Forward-looking statements are based on the opinions and estimates of management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, political developments affecting federal and state regulatory agencies, and developments with respect to the bankruptcy of Enron. Except as required by law, neither Enron nor Portland General Electric Company undertake any obligation to update any forward-looking statements.