Regulators Question Pge, Enron Merger

State utility regulators reacted with skepticism and even some hostility Friday as top officers of Portland General Electric Co. and Enron Corp. presented their case for a $3.2 billion merger.

Ken Lay, CEO of the Houston-based Enron, and PGE President Ken Harrison appeared before the Public Utility Commission seeking approval of a merger that would create the nation’s largest electric and natural gas utility.

Both said the merger would create a business that would be well positioned to compete in a rapidly changing energy marketplace.

But members of the PUC complained that the companies are offering PGE customers a minuscule rate cut as part of the deal.