News Release Details

PORTLAND, Ore., Jun 28, 2010 (BUSINESS WIRE) -- Portland General Electric Company (PGE) (NYSE: POR) is disappointed by draft emissions control options for the Boardman Power Plant issued today by the Oregon Department of Environmental Quality, and plans to continue working with the agency to develop an appropriate control strategy for the plant.

"We put forward a plan for Boardman that we believe reached a good balance between cost, risk and environmental benefits," PGE President and CEO Jim Piro said. "We'll do a complete analysis, but we're disappointed that DEQ didn't allow that plan to proceed. On the face of it we believe the new options DEQ put forward today may reflect an extreme interpretation of federal rules that won't make sense for our customers or our state. We want to work with DEQ to find a better way to transition this resource around the 2020 timeframe."

In April, PGE proposed a plan to end use of coal to generate electricity at Boardman in 2020, sharply reducing plant emissions in the interim while minimizing costs to customers. PGE's analysis has shown that the 2020 transition provides the best balance of cost, risk and environmental benefit while allowing enough time for PGE to develop cleaner replacement resources. Numerous stakeholder groups have expressed strong support for PGE's 2020 plan, including customer groups, renewable power advocates, chambers of commerce and other business and economic development organizations, labor unions, low-income advocates, and members of the Boardman community.

DEQ did not include PGE's plan in the options it released today, instead substituting a 2020 alternative that would cost almost $300 million more to implement. The other options DEQ has put forward would also increase costs substantially and/or require earlier plant closure, threatening system reliability and limiting replacement possibilities.

"DEQ has said that they remain open to an alternative plan that will be fair to our customers while protecting the environment; that's our goal as well, so we intend to keep working with them in the coming weeks to try to forge a workable rule," said Piro.

The Boardman decision will be a key component of a strategy to meet PGE customers' future energy needs that also includes additional energy efficiency, demand-side systems to reduce peak usage, new renewable and natural gas resources, and new transmission lines to bring electricity to the Willamette Valley. The company's Integrated Resource Plan is currently being reviewed by the Oregon Public Utility Commission.

The utility's original resource plan, filed in November of 2009, included a recommendation to install extensive emissions control retrofits on the Boardman Plant, at an estimated cost of $520 million to $560 million. These controls would allow continued operation of the plant through at least 2040 in compliance with existing DEQ rules.

If an early closure or transition to an alternative fuel is allowed to proceed, PGE will evaluate replacement resources for Boardman and submit recommendations to the OPUC as part of a future resource plan.

About Portland General Electric Company

Portland General Electric Company is a vertically integrated electric utility that serves approximately 817,000 residential, commercial and industrial customers in the Portland/Salem metropolitan area of Oregon. The Company's headquarters are located at 121 SW Salmon Street, Portland, Oregon 97204. Visit our website at www.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. Forward-looking statements include statements regarding PGE's implementation of an alternative operating plan for the Boardman Power Plant, statements regarding the future operation of the Boardman Power Plant, statements regarding expected emissions reductions in the future, statements regarding PGE's future recommendations concerning the operating plan for the Boardman Power Plant, statements regarding expected cost to customers under various closure or transition plans, statements regarding estimated costs of emissions controls, as well as other statements containing words such as "anticipates," "believes," "intends," "estimates," "will," "promises," "expects," "should," "conditioned upon," and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including final regulatory review and acknowledgement of the Company's proposed haze rule revision and integrated resource plan, and the successful installation, cost and effectiveness of future emissions controls. 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 statement. 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 Operations and the risks described therein from time to time.

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Source: Portland General Electric Company

SOURCE: Portland General Electric Company

Portland General Electric Company
Steve Corson, 503-464-8444
steven.corson@pgn.com
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