SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549


                                 Form 8-K

                              CURRENT REPORT


                  Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934


     Date of Report (Date of earliest event reported) January 16, 1997


                        Registrant; State of Incorporation;  IRS Employer
COMMISSION FILE NUMBER  ADDRESS; AND TELEPHONE NUMBER        IDENTIFICATION NO.

 1-5532                 PORTLAND GENERAL CORPORATION         93-0909442
                        (an Oregon Corporation)
                        121 SW Salmon Street
                        Portland, Oregon 97204
                        (503) 464-8820


 1-5532-99              PORTLAND GENERAL ELECTRIC COMPANY    93-0256820
                        (an Oregon Corporation)
                        121 SW Salmon Street
                        Portland, Oregon 97204
                        (503) 464-8000



          121 S.W. SALMON STREET, PORTLAND, OREGON            97204
          (Address of principal executive offices)         (zip code)

    Registrant's telephone number, including area code 503-464-8820


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 ITEM 5.             OTHER EVENTS

 PRELIMINARY  MERGER  RECOMMENDATION  -  On  January 16, 1997 Portland General
 Corporation (PGC) and Enron Corp. (ENRON) received the preliminary  
 recommendation  from the Staff of the Public Utility Commission of Oregon 
 (OPUC) to approve, subject to certain conditions, the companies' application
 to merge. The OPUC Staff recommends an  annual  rate  reduction for Portland 
 General Electric's (PGE) customers  of $47.4 million, a result  of  several  
 conditions  proposed  by  the Staff. The proposed rate reduction includes a 
 provision to true-up reduction  amounts  if certain future revenues exceed 
 expectations.

 Staff  proposed  reductions  consist  of  the  following items: $11.7 million
 related to PGE  trading floor margins, $24.5 million related to estimated non-
 franchise retail sales margins, $10 million related  to  administrative  cost
 savings  and  $1.2 million associated with lower natural gas fuel costs. These
 reductions would remain in rates for approximately four years.

 Other conditions  include  minimum  service  quality  standards, cost shifting
 protections,  and  competitive  protections,  most of which  are  similar  to
 conditions already in place between PGE and PGC.

 PGC and ENRON are pleased the Staff has recommended  approval  of  the merger,
 however, certain of the proposed conditions raise legal, policy and  monetary
 issues  that  must  be  addressed.  Settlement  conferences  are scheduled for
 January 22 through 24, 1997.

 For further background information regarding the proposed merger   see the PGE
 and  PGC  quarterly reports on Form 10-Q for the quarter ended September  30,
 1996, and report on Form 8-K dated November 12, 1996.


                                Signatures


 Pursuant to  the  requirements  of  the  Securities  Exchange Act of 1934, the
 registrants have duly caused this report to be signed  on  their behalf by the
 undersigned hereunto duly authorized.


                            Portland General Corporation
                            Portland General Electric Company


 January 17, 1997           By      /S/ JOSEPH E. FELTZ
                                         Joseph E. Feltz
                                       Assistant Controller
                                       Assistant Treasurer



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