Oregon Electric Makes Final Filing to Purchase PGE; Offers $43 Million Rate Credit to PGE Customers.PORTLAND, Ore. -- Oregon Electric Commits to Provide PGE PGE Pacific Gas and Electric Company
PGE Portland General Electric
PGE Prostaglandin E
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PGE Perfect Girl Evolution with up to $94 Million in Additional Contractual Protections Obtained from Enron
Oregon Electric Utility Company (Oregon Electric) has offered a guaranteed $43 million rate credit to PGE customers if its proposal to purchase the utility is approved by the Oregon Public Utility Commission. The rate credit - a significant increase from the $15 million Oregon Electric proposed on August 16 - is higher than the $36 million credit Enron provided when it purchased PGE. The $43 million credit would be payable over five years beginning in 2007.
In testimony filed today in response to the testimony of OPUC OPUC Oregon Public Utility Commission
OPUC Old Pc Users Club Staff and intervenors in the approval proceeding, Oregon Electric also made it clear that PGE would receive the benefit of up to $94 million in contractual protection from Enron against potential liabilities and losses unrelated to Enron, in addition to the contractual protection against Enron-related liabilities previously offered to PGE, in a total amount up to $1.25 billion.
"Oregon Electric's proposal provides irrefutable irrefutable - The opposite of refutable. rate relief and other significant benefits to PGE customers," said Peter O. Kohler, M.D., prospective chairman of Oregon Electric and PGE. "In contrast, no such benefits will be enjoyed by ratepayers and PGE if the status quo [Latin, The existing state of things at any given date.] Status quo ante bellum means the state of things before the war. The status quo to be preserved by a preliminary injunction is the last actual, peaceable, uncontested status which preceded the pending controversy. is preserved. It's time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a to make PGE an independent Oregon utility once again."
Additionally, Oregon Electric has agreed to rigorous provisions that protect PGE's financial well-being, such as not paying dividends to shareholders until at least $250 million in Oregon Electric debt is repaid. Collectively, these provisions go beyond the conditions that were placed on Enron when it purchased PGE, conditions which have been highly effective in protecting the utility during Enron's bankruptcy. Today's filing also provided additional transparency into Oregon Electric's governance and ownership, as well as made commitments to provide the OPUC with additional information regarding PGE's expenditures.
"We are sensitive to the perceived concerns of OPUC staff and stakeholders, given the Enron experience. For that reason, in the spirit of cooperation that Oregon Electric's ownership portends, we have agreed to more onerous conditions than previously imposed on an owner of an Oregon utility," said Kelvin Davis
Kelvin Geoffrey Davis (born Bedford, 29 September 1976) is a football goalkeeper currently playing for Southampton. , a partner in the investment group backing Oregon Electric's proposal to acquire PGE. "Coupled with those protections are a $43 million rate credit, liability protections, local board leadership and other benefits that together clearly demonstrate that Oregon Electric's ownership of PGE will provide undeniable benefits to customers and Oregonians at large."
"Beyond the rate credit and other immediate benefits, Oregon Electric will usher in Verb 1. usher in - be a precursor of; "The fall of the Berlin Wall ushered in the post-Cold War period"
commence, lead off, start, begin - set in motion, cause to start; "The U.S. a new era of collaboration among PGE's stakeholders. This investor group also has deep experience in helping make good companies even better, which will inure To result; to take effect; to be of use, benefit, or advantage to an individual.
For example, when a will makes the provision that all Personal Property is to inure to the benefit of a certain individual, such an individual is given the right to receive all the personal to the long-term benefit of customers," said Kohler.
In its final filing, Oregon Electric restated the reasons why its acquisition of PGE would result in a net benefit to PGE's customers. If the Oregon Electric proposal is approved, the following benefits will be achieved:
--An end to Enron: An immediate end to Enron's ownership of PGE, ensuring renewed stability and certainty backed by responsible shareholder support
--A $43 million rate credit: Customers will receive a total rate credit of $43 million, to be paid over five years beginning in 2007
--Local headquarters remain: PGE's headquarters will stay in Portland, jobs will stay in Oregon, and PGE will continue its charitable leadership in the community
--The creation of a new board with substantial local representation: Oregon Electric has designated seven leading Oregonians to serve on the PGE board, including an Oregon chairman
--Protection against Enron-related and other liabilities other liabilities
Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. : PGE will benefit from certain contractual protections from Enron provided under the purchase contract against potentially material Enron-related liabilities and against certain other non-Enron related liabilities and losses.
--Service quality: A commitment to reinforcing high quality service standards, including a 10-year extension of service quality measures that are currently in place
--Addressing customer concerns: Periodic access by customer organizations and other PGE stakeholder groups to the PGE Board of Directors, providing these constituencies with the opportunity to voice concerns directly to the board
--Capital reinvestment: Substantial future capital reinvestment in PGE, ensuring reliability and efficiency from existing assets and the acquisition and development of new resources
--Long-term efficiency and cost-effectiveness: A commitment to undertaking a comprehensive review of the company post-closing, with the goal of identifying efficiency and productivity gains that ensure customers receive safe and reliable electricity as cost-effectively as possible
--A significant Oregon taxpayer: Oregon Electric will be a substantial Oregon taxpayer and will not consolidate its returns with any other operating company operating company
A business that engages in transactions with outsiders. , as happened in the Enron era
--More renewables: A commitment to vigorously pursue a target of using cost-effective renewable resources to fulfill 10 percent of PGE's peak capacity by 2012
--Organizational accountability for environmental initiatives: The appointment of a manager within PGE with the appropriate responsibility and authority to work with the advocacy groups for renewable energy Renewable energy utilizes natural resources such as sunlight, wind, tides and geothermal heat, which are naturally replenished. Renewable energy technologies range from solar power, wind power, and hydroelectricity to biomass and biofuels for transportation. sources, sustainability, energy efficiency, and environmental matters
--Greater assistance to low-income customers: A doubling of cash contributions for the next 10 years that PGE currently makes to Oregon HEAT, a non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. that assists low-income families in paying utility bills, which will be paid for with Oregon Electric shareholder (rather than customer) funds
"The Oregon Electric proposal provides clear and substantial benefits to PGE customers, benefits that will not be available if PGE remains under the cloud of Enron's ownership," added Davis.
About Oregon Electric Utility Company
Oregon Electric Utility Company is a new Oregon company formed for the sole purpose of investing in Portland General Electric This article is not to be confused with PG&E, a San Francisco, California-based utility company
Portland General Electric (PGE) (NYSE: POR) is an electrical utility, formerly owned by the Houston-based Enron Corporation (but now independent), that distributes electricity to . Oregon Electric's goal is to maintain PGE as an independent utility based in Oregon, serving local customers, and contributing to the health of the community and the growth of the regional economy.
The company is backed by Texas Pacific Group, one of the leading private equity firms in the country. In addition, respected Northwest leaders and industry experts have committed to join the new PGE board upon approval of the transaction. They include:
--Peter Kohler, M.D., President of Oregon Health & Science University
--Kirby Dyess, former Corporate Vice President and Director of Operations at Intel Capital, and currently a Principal with Austin Capital Management, LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control
--Maria Eitel, Vice President and Senior Advisor In some countries, a Senior Advisor is an appointed position by the Head of State to advise on the highest levels of national and government policy. Sometimes a junior position to this is called a National Policy Advisor. for Corporate Responsibility, Nike, Inc., and President, Nike Foundation
--Gerald Grinstein, Principal, Madrona Investment Group LLC, and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Delta Air Lines, Inc.
--Jerry Jackson, former Executive Vice President and Group President, Utility Operations, Entergy Corporation
--Duane McDougall, former President and CEO, Willamette Industries, Inc.
--Robert Miller, Chairman, Rite Aid Rite Aid (NYSE: RAD) is a United States retailer and pharmacy chain, operating over 5,000 stores in 31 states and the District of Columbia. Rite Aid Corporation is one of the nation's leading drugstore chains. Corp. and former CEO, Fred Meyer, Inc.
--M. Lee Pelton, Ph.D., President, Willamette University Willamette’s College of Liberal Arts is the undergraduate school on campus. The oldest of the graduate programs is the College of Law, founded in 1883 and located in the Truman Wesley Collins Legal Center.
--Tom Walsh, President, Tom Walsh & Co.
--In addition, Peggy Fowler, CEO of PGE, and David Bonderman David Bonderman (1942 - ) is a founder of Texas Pacific Group (TPG) and its Asian affiliate, Newbridge Capital.
Prior to forming TPG in 1991, Mr. Bonderman was Chief Operating Officer of the Robert M. Bass Group, Inc. (now doing business as Keystone, Inc. and Kelvin Davis, partners of Texas Pacific Group, will also join the Board.
On November 18, 2003, Oregon Electric Utility Company signed a binding agreement with Enron to acquire all of Portland General Electric for approximately $2.35 billion. The Oregon Electric proposal is now pending review and approval before the Oregon Public Utility Commission.