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PORTLAND GENERAL ELECTRIC SENIOR DEBT LOWERED TO 'A-', OFF FITCHALERT -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 15 /PRNewswire/ -- Portland General Electric Co. (PGE)'s first mortgage bonds are lowered to A-' from A' by Fitch following the company's recent announcement that it will permanently shut down the Trojan Nuclear Plant. PGE's debentures and preferred stock are lowered to BBB+' from A-'. All PGE ratings are removed from FitchAlert negative. The credit trend is declining.
 The Trojan plant, which has been out of service since November due to a leak in a steam generator, has a history of troubled operations. PGE owns 67.5 percent of the 1100 megawatt Westinghouse unit which supplies about 25 percent of it's generation. The company had previously planned to phase out Trojan by 1996.
 The immediate shutdown of Trojan will lessen operational risk but will also expedite the need for replacement capacity and result in ongoing replacement power costs, shut down related expenses (including decommissioning) and higher capital expenditures. The additional costs which are partly offset by a reduction in employees and operating and maintenance expenses, will pressure credit quality measures and increase reliance on regulatory support.
 In addition to the financing stress, the rate treatment of PGE's $350 million investment is also uncertain. The company plans to seek amortization of its investment and recovery of closing costs over the remaining life of the license, which expires in 2011. Fitch anticipates favorable rate treatment although prudency hearings may be held and some cost sharing between rate-payers and share holders is possible and could result in a write-off.
 The company has no fuel adjustment clause and has requested deferral of replacement power costs of about $300,000 daily. A rate decision is expected in the first quarter. During a previous outage in 1991, the Oregon Public Utility Commission permitted recovery of 90 percent of replacement power costs.
 Long term, the replacement of Trojan, PGE's largest generating resource, with less risky generation should be positive. The ultimate impact on credit quality, however, will be greatly influenced by the regulatory treatment of the current shutdown costs and rate base investment. Although not anticipated, less than constructive rate treatment could lead to further adjustment of the rating.
 -0- 1/15/93
 /CONTACT: Robert Hornick of Fitch, 212-908-0564/
 (PGN)


CO: Portland General Electric Co. ST: Oregon IN: UTI SU: RTG

WB -- NY059 -- 5487 01/15/93 16:03 EST
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Date:Jan 15, 1993
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