Critical Steelhead Habitat Protected by PGE and River Conservancy; PGE Makes $1,000,000 Purchase in Central Oregon.

PORTLAND, Ore.--(BUSINESS WIRE)--Sept. 2, 1999--

Prime Oregon steelhead habitat and three thousand surrounding acres will be permanently protected, thanks to Portland General Electric (PGE) and the River Conservancy.

The two organizations today announced PGE's purchase of Trout Creek Ranch, 15 miles north of Madras.

Trout Creek is the Deschutes River's principal spawning tributary for threatened summer steelhead, producing more than 70,000 smolts in 1998. The $1,075,000 acquisition sets the stage for restoring approximately three miles of Trout Creek to its natural state, nurturing steelhead as they travel to and from the spawning grounds located upstream from the ranch. The remainder of the property will become a wildlife refuge for a wide range of species including osprey, bald eagles and three nesting pairs of golden eagles. The land also contains significant native plants and rare fossils.

The River Conservancy, based in Portland, purchased an option on the property earlier this year. PGE then bought the land through the conservancy.

PGE President Peggy Fowler said, "Our customers benefit from the low-cost power produced on the Deschutes River, and we're committed to the health of this watershed and rebuilding native fish runs. Trout Creek gives us a unique opportunity to preserve a beautiful part of Oregon's natural history while helping us meet our Pelton Round Butte relicensing commitment."

Phil Wallin, Director of the River Conservancy stated, "If we're going to restore the runs of wild salmon and steelhead in Oregon, we can't rely exclusively on public money. We need private partners -- like PGE -- who are willing to step up and invest in nature."

The River Conservancy has acquired and protected over 30,000 acres of key riverlands during its first decade. The conservancy is a program of River Network, a non-profit organization headquartered in Portland that supports grassroots river conservation efforts nationwide.

Bill Bakke, Director of the Portland-based Native Fish Society, said, "Trout Creek Ranch is a remarkable place as it stands, but it's just going to get better as the stream improves. The number and size of steelhead in the Deschutes will likely increase because of this purchase." Bakke is a member of the committee directing the PGE/Enron Habitat Restoration Fund, which provided the purchase money. As part of its 1997 merger with Enron Corp., PGE pledged $10 million to the fund, protecting watersheds where PGE has hydroelectric projects.

Decades of cattle and sheep grazing damaged streamsides and eliminated natural vegetation that held and shaded Trout Creek's bed. Five years ago, the ranch was purchased by John von Schlegell of Portland and Bill Smith of Bend, who removed cattle from the land and created a pheasant shooting preserve, allowing the beginnings of stream restoration. PGE will continue the restoration, including a return to native vegetation on the ranch, after a formal assessment and planning process.

PGE, headquartered in Portland, supplies electricity to more than 1.5 million Oregonians while working to protect the natural environment.

Editors: For still photos, available electronically, please contact River Network. For broadcast quality video, please contact PGE.