[ENRON LOGO] ENRON
P.O. Box 1188
Houston, TX 77251-1188
NEWS RELEASE
Contacts:
For Oregon Electric Utility
Company
Tom Imeson
503-221-2012
tomimeson@neilg.com
For Enron
Mark Palmer
713-853-4738
mark.palmer@enron.com
For TPG
Owen Blicksilver
971-554-7919 (Nov. 18-19 only)
516-742-5950
owen@blicksilverpr.com
ENRON TO SELL PORTLAND GENERAL ELECTRIC
TO OREGON ELECTRIC UTILITY CO.
$2.35 BILLION TRANSACTION; PROCEEDS TO BE DISTRIBUTED TO ENRON CREDITORS;
UTILITY TO BE OWNED BY LOCAL COMPANY BACKED BY PROMINENT INVESTORS.
For Immediate Release: Tuesday, Nov. 18, 2003
HOUSTON/PORTLAND -- Enron and Oregon Electric Utility Company, LLC
(Oregon Electric) announced today they have signed a definitive agreement under
which Oregon Electric will acquire Portland General Electric (PGE) from Enron.
PGE is a public electric utility, serving nearly half of Oregon's population.
The transaction, which has been approved by the Enron Board of
Directors and is supported by the Official Unsecured Creditors' Committee in the
Enron bankruptcy proceeding, requires the approval of the Bankruptcy Court,
which will conduct an "overbid" process to give other potential buyers an
opportunity to submit superior bids. After the sale to Oregon Electric is
approved by the Court, the parties will seek approval of the Oregon Public
Utility Commission
and certain federal regulatory agencies. Subject to receiving these approvals,
closing is anticipated in the second half of 2004.
The transaction is valued at approximately $2.35 billion, including the
assumption of debt, with the final amount to be determined on the basis of PGE's
financial performance between January 1, 2003 and closing. In return, Oregon
Electric will receive 100% of the outstanding shares of PGE, giving it full
control of PGE.
"Enron and its Official Unsecured Creditors' Committee believe this
transaction is the best option to deliver maximum value to our economic
stakeholders," said Stephen Cooper, Enron's chief restructuring officer. "As we
have said all along, we will not break up PGE. This transaction supports that
commitment."
Oregon Electric is a newly-formed entity financially backed by
investment funds managed by Texas Pacific Group (TPG), one of the nation's
leading private equity investment firms. Upon closing, Oregon Electric will
include three prominent Northwest business and community leaders, former Oregon
Governor Neil Goldschmidt, Gerald Grinstein and Tom Walsh. Oregon Electric will
appoint the members of the PGE Board of Directors and these three individuals
are expected to serve on the Board. PGE will retain its name, and its
headquarters will remain in Portland.
"We are very excited for Portland General to be an independent, locally
based company with the backing of strong financial investors. We believe it is a
solution that will work for customers, employees and the communities that depend
on PGE," said Mr. Goldschmidt, who served as Governor of Oregon from 1987-1991.
He was also former U.S. Secretary of Transportation under President Jimmy Carter
and the former Mayor of Portland. It is expected Mr. Goldschmidt will serve as
Chairman of the Board of PGE when the sale is completed.
Gerald Grinstein is the former Chairman and CEO of Burlington Northern
and former Chairman of both Delta Air Lines and Agilent Technologies. He serves
on the Board of Directors of Delta Air Lines, PACCAR, Vans and The Brinks
Company.
Tom Walsh is a well-respected Oregon civic leader who is the former
head of Tri-Met, the regional transit authority. He has served as chairman of
the Oregon Board of Forestry and as vice chairman of the Oregon Transportation
Commission. He is also a successful builder of affordable housing.
TPG's investors are largely institutions and a majority of its capital
comes from a number of America's largest public and private pension funds, banks
and insurance companies. One such investor is the Oregon Public Employees
Retirement Fund (OPERS), which has been an investor in TPG funds since TPG's
inception.
"This is a terrific investment opportunity for us and for Oregon. It
enables PGE to focus on providing outstanding service to its customers, while
emphasizing independent operation and substantial local participation on its
Board of Directors," said David Bonderman, founding partner of Texas Pacific
Group.
Peggy Fowler, Chairman and CEO of PGE, said "We're pleased to have such
high quality investors who understand local concerns. We are hopeful we can work
through the bankruptcy and OPUC processes to complete this transaction and bring
renewed stability to PGE. In the meantime, PGE employees will continue to focus
on delivering safe, reliable power to our customers." About Portland General
Electric
Portland General Electric (PGE) is a recognized leader in the utility
industry with more than a century of experience delivering safe and reliable
electricity. PGE serves more than 750,000 retail customers in the Northwest. The
company supports the community through a variety of innovative philanthropic,
volunteer and environmental stewardship efforts. Visit PGE on the web at
www.portlandgeneral.com About Texas Pacific
Texas Pacific Group, with offices in San Francisco, London and Fort
Worth, TX, is a private equity investment firm. TPG has significant experience
working in regulated industries including airlines, financial services and
healthcare. Since its founding in 1993, TPG has invested in more than 50
companies, of which it continues to own more than 30. These companies have
combined revenues of more than $32 billion and employ more than 225,000
employees.
About Enron
Enron's Internet address is www.enron.com
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