Enron to keep Oregon utility

[Judi Lynn]

Page Updated: Thursday, April 7, 2005 11:52 AM PDT
Enron to keep Oregon utility


By Kristen Hays, AP Business Writer

HOUSTON - Enron Corp. intends to return its Northwestern utility to its pre-Enron form as an independent, investor-owned business in light of Oregon regulators' decision to block its sale to a Texas private investment firm, the company announced late Wednesday.

Enron, which crashed in scandal in December 2001 and emerged from one of the most notorious and expensive bankruptcies in history in November, said Wednesday it had abandoned the deal to sell Portland General Electric to a holding company backed by Texas Pacific Group given its failure to pass muster with Oregon regulators last month.

The company said it is moving forward with plans to essentially return PGE to a separate publicly-owned business out from under Enron's umbrella. That plan involves canceling current PGE stock - now owned by Enron - and later issuing new stock to creditors, who in turn can decide whether to sell those shares on the open market.

"You can look at this almost like an IPO, except you already know who's going to be buying," interim Enron CEO and turnaround expert Stephen Cooper told The Associated Press late Wednesday.
(snip/...)

http://www.theworldlink.com/articles/2005/04/07/news/news12.txt

~~~~~~~~~~~~~~~~~~~~~~~~~~

Oregon governor to meet with Enron CEO over PGE

SALEM, Ore. Oregon Governor Ted Kulongoski (KOO'-lun-gos-kee) will meet with Enron C-E-O Stephen Cooper now that a Texas group has dropped its bid for a utility.
(snip)

Portland General Electric is a unit of Enron -- and Oregon's largest utility.

The Texas Pacific Group yesterday announced it's decided not to continue seeking Oregon regulatory approval for the proposed acquisition.
(snip)

The Oregon Legislature is considering a bill to create a public corporation to buy and operate P-G-E.
(snip/...)

http://www.kltv.com/Global/story.asp?S=3181145

[stevedeshazer]

1. That headline is very misleading

Technically, it's true.

The Oregon Public Utilities Commission denied the Texas Pacific Group's bid to purchase PGE.

What's NOT said here is that the deal these Texans proposed ensured them at least $1 billion in profits; their plan involved a leveraged buyout.

All profit-on-paper.

There's a strong movement in Oregon determined to facilitate a public buyout of PGE, either by the City of Portland or the State of Oregon. I think most Oregonians support such a move.

PGE customers pay the highest electricity rates in the region. Numerous small public utility districts around Oregon and Washington deliver power more effectively and cheaper. Even Pacific Power, the next largest private utility here has significantly lower rates.

I've followed PGE's ripoffs for over thirty years. I supported my home town friends who successfully voted to start the Columbia River People's Utility District, and we threw PGE out. Rates are now 15-20% lower than before.

Beware of Texans from Houston with zoot suits and cowboy boots. This deal had Enron stink all over it.

more on Texas Pacific Group: http://www.hoovers.com/texas-pacific-group/--ID__51545--/free-co-factsheet.xhtml

[swag]

2. Good point

The headline is not the story.

I think City of Portland must be the lead suitor for PGE at this point, what with council members already in talks with PGE.