Enron, Pge Deal Hits Snag

Enron Corp. was hoping to build a quick consensus in favor of its $3.2 billion acquisition of Portland General Corp.

Instead, the state, businesses and public interest groups say the Houston energy giant is dragging its feet on providing key information. Some critics say Enron also has not shown the deal will benefit consumers.

The proposed merger was announced in July, and the Oregon Public Utility Commission plans to make a decision by Feb. 18.

Industrial Customers of Northwest Utilities, an association of major power users, is leading the chorus of critics.

Ken Canon, the group’s executive director, questions whether the utility merger complies with state law by being in the public interest.

Enron has said the merger will not harm consumers and is in their interest because it would create a stable, efficient company without exposing PGE customers to financial risks from other Enron ventures.

But Canon said the deal must benefit consumers to be in the public interest.

“I think there’s a fundamental disagreement” between Enron-PGE and most of the critics, Canon said. “PGE has said essentially the customers don’t have any substantive rights in this proceeding and we fundamentally disagree with that.”

PUC staff say Enron has not provided complete reports on PGE’s hydroelectric and nuclear power projects, even after an administrative law judge ordered Enron to hand over the reports.

The Houston energy giant is giving customers cursory responses to complex questions, or refusing to answer questions it deems irrelevant, said Paula Pyron, a lawyer for Legacy Health Systems.

“They’re trying to keep things incredibly narrow,” she said.

Legacy Health Systems is one of more than two dozen businesses and interest groups that have filed comments about the merger with the Oregon Public Utility Commission. Many of those filing comments expressed similar concerns about Enron’s lack of responsiveness.

“I guess it’s safe to say that competitors who have intervened in the proceeding will probably never be happy,” said Steve Kean, president of one of Enron’s four business units.