Oregon Regulators Clear Utility Merger

Ending months of haggling and negotiation, the $2.9 billion merger between Enron Corp. and Portland General Corp. was approved Wednesday by state regulators.

The Oregon Public Utility Commission said it was satisfied that Enron’s acquisition of Portland General and its subsidiary, Portland General Electric Co., will benefit PGE customers.

“Our goal was to make sure that customers are better off because of the merger than if it didn’t happen,” PUC Chairman Roger Hamilton said. “Working together, staff, intervenors and representatives from the companies have been successful in reaching an agreement that meets that standard.”

Under the agreement, which earlier was approved by federal regulators, Houston-based Enron must pay $141 million in rate reductions to customers over the next four years.

Enron has said it expects no layoffs of Portland General employees. Officials from both companies said Wednesday the deal will affect customers positively.