EXHIBIT 99(b)
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PACIFICORP                                                        NEWS RELEASE
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FOR FURTHER INFORMATION CONTACT:

Scott Hibbs, for investors, (503) 813-7222
Dave Kvamme, for media, (503) 464-6272

July 1, 1998

PACIFICORP EXPECTS SECOND QUARTER EARNINGS
SHORTFALL

      Portland, OR -- PacifiCorp (NYSE:  PPW) announced today that it expects
that its second quarter 1998 earnings will be below securities analysts'
expectations.  The company expects that quarterly earnings could fall short of
the FIRST CALL analysts' consensus of $0.30 per share by approximately
30 percent.

      The shortfall is expected to result from losses in the company's eastern
U.S. energy trading operations and losses from its unregulated energy
development activities.

      The company expects to report a loss for the second quarter from its
unregulated energy trading business primarily as a result of extreme price
volatility in eastern power markets.  Demand increases caused by unseasonably
hot weather combined with an unusual level of power plant outages caused power
prices in the eastern U.S. to rise dramatically in certain periods during the
quarter.  

      The price increases resulted in a number of the company's short
positions being significantly below market prices.  In order to remain in
compliance with the company's risk management policies, these positions were
settled or offset, thereby limiting the potential magnitude of the losses.

      In accordance with settlement accounting standards, losses on those
positions that were settled prior to June 30 will be reported in the second
quarter.  Losses on those positions due to be settled in the third quarter
that were offset with a counter position in the market will be reported in the
third quarter.

      The company does not currently have material open contract positions in
the eastern power markets.  However, the company, like others in the industry,
faces increased risk that parties with which it has power contracts will not
be able to perform under those contracts as a result of the continued market
volatility.  Non-performance on the part of any of these parties could result
in additional losses for the company as it meets its delivery commitments.

                                    (more)


      The company expects its unregulated energy development activities will
incur losses in the quarter.  These activities include the company's pursuit
of international and domestic energy development opportunities.  It is the
company's current expectation that these activities will continue to incur
losses during the balance of 1998.  
  
      In light of these issues and general business conditions, the company
believes that it is unlikely that the company's earnings for the full year
1998 will meet current securities analysts' expectations.

      PacifiCorp expects to report second quarter earnings the week of
July 20.

      PacifiCorp, one of the lowest-cost electricity producers in the United
States, is a multinational energy company with 1.4 million retail electric
customers in the western United States and 550,000 customers in the Australian
states of Victoria and New South Wales.

      With more than 10,000 megawatts of generation capacity, PacifiCorp is
also the largest investor-owned bulk power marketer in the western United
States and is an active electricity and gas marketer in the East.

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