NW Natural (ticker: NWN, exchange: New York Stock Exchange) News Release -
 5/16/2002
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NW Natural and Enron Agree to Terminate Sale of PGE

PORTLAND, Ore., May 16, 2002 -- Northwest Natural Gas Company (NYSE: NWN), dba
NW Natural, announced today that it has reached an agreement-in-principle with
Enron Corp. to terminate the stock purchase agreement entered into on October 5,
2001, under which NW Natural was to acquire Portland General Electric Company
(PGE), a wholly-owned subsidiary of Enron. NW Natural expects that final
documentation of the termination agreement will be entered into soon following
the approval of Enron's board of directors.

The termination of the stock purchase agreement will be subject to, and become
effective upon, the satisfaction of the following conditions: a) approval of the
termination agreement by Enron's Bankruptcy Court and b) consent of the lenders
from whom Enron has obtained debtor-in-possession financing.

The termination agreement will include mutual releases from any legal action
associated with the stock purchase agreement.

"The agreement signed last October, before Enron's problems began, simply
doesn't work given the complexities of the situation," said Richard G. Reiten,
Chairman and Chief Executive Officer of NW Natural.

Reiten expressed his gratitude to the Oregon Public Utility Commission (OPUC)
and its staff. "This was not a simple approval application. The OPUC and its
staff deserve a lot of credit for moving it forward quickly and in a
constructive manner. I can't say enough about their professionalism and
efficiency."

Reiten added that with or without PGE, NW Natural has a bright future. "We are
one of the fastest growing and most efficient natural gas distribution companies
in the nation. There are many opportunities ahead to deliver even greater value
to our customers and shareholders."

NW Natural is Oregon's largest gas distribution company with more than 530,000
customers in Oregon and Southwest Washington.

PRESS CONTACT:           Steve Sechrist
                         503/226-4211 Ext. 3517

INVESTOR CONTACT:        James Boehlke
                         503/721-2451
                         503/226-4211 Ext. 2451