Portland General Electric Signs Contracts for Advanced Metering Infrastructure System.

PORTLAND, Ore. -- Portland General Electric Company (PGE) (NYSE:POR) today announced it has entered into an agreement with Sensus Metering Systems for the purchase of Sensus' FlexNet Advanced Metering Infrastructure (AMI) system. PGE plans to deploy AMI to approximately 850,000 residential and commercial customers between 2008 and 2010, subject to regulatory and board of director approvals. The majority of the new meters are expected to be installed once initial system testing is completed in late 2008. Advanced metering technology allows meters to be read remotely on a daily basis providing operational savings through increased efficiencies and a wide-range of benefits to customers.

"We're always looking for ways to offer our customers more options. We believe that AMI technology will help us serve our customers more efficiently and cost effectively, and that our customers will benefit from the improved services," said Joe McArthur, PGE's vice president of customer service. "We've successfully completed the initial software testing process and believe that Sensus is the vendor best suited to meet our AMI needs."

Wellington Energy, Inc. has been selected to provide meter installation services for the AMI project.

The FlexNet system will provide PGE with two-way communications to its residential and commercial meters enabling many benefits for the utility's customers including new billing options such as customer selected bill due date and remote activation and de-activation for customers who are moving their home or business. Other anticipated benefits include helping PGE determine the extent of outages more quickly and deploy restoration crews more accurately, as well as lower labor costs due to the use of wireless data transfer rather than manual meter reading. These cost savings will be reflected in customer prices.

AMI is also expected to support the future development of demand response and direct load control programs that will help improve energy efficiency and reduce the need for new power plants. Eventually, AMI will enable PGE to provide customers with access to their daily energy use information via the Internet and near real-time data available through a home area network link built into the meter. PGE believes demand response programs could help reduce peak demand and shift customer usage to off-peak periods of the day when power costs less.

The capital cost of the project is expected to be $132 million with annual operating savings projected to be $18 million as of 2011, the first full year of operation of the new system.

About Portland General Electric Company

Portland General Electric, headquartered in Portland, Ore., is a fully integrated electric utility that serves approximately 802,000 residential, commercial and industrial customers in Oregon. Visit our Web site at PortlandGeneral.com.

Safe Harbor Statement

Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include statements concerning the future deployment and operation of AMI, the scope of such deployment, the expected performance of the FlexNet system and the expected benefits and capital cost of AMI, as well as other statements identified by words including, but not limited to, "will," "anticipates," "believes," "intends," "estimates," "promises," "expects," "should," "conditioned upon" and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including regulatory, operational and legal matters, as well as other factors that could affect the deployment and successful operation of AMI. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the Company on the date hereof and such statements speak only as of the date hereof. The Company assumes no obligation to update any such forward-looking statements. Prospective investors should also review the risks and uncertainties listed in the Company's most recent Annual Report on Form 10-K and the Company's reports on Forms 8-K and 10-Q filed with the United States Securities and Exchange Commission, including Management's Discussion and Analysis of Financial Condition and Results of Operation and the risks described therein from time to time.

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Source: Portland General Electric Company