Enron Bows to Oregon Rate Cuts
Enron Corp. has acquiesced to a demand from the Oregon Public Utility Commission for $141 million in rate cuts as a condition to approval of the proposed merger between Enron and Portland General Corp.
The PUC staff had informed Enron in March that it would not approve the merger, based on Enron's proposed $61-million rate cut, and said it would only accept $141 million in guaranteed cost savings and rate cuts.
The trade-off is that shareholders of Portland General will receive less for their stock than Enron originally had offered.