April 08, 2008

Credit to appear on PGE customers’ bills beginning week of April 15
Oregon Public Utility Commission approves PGE distribution plan

Portland, Ore. – Oregon utility regulators have approved Portland General Electric’s (PGE) distribution plan for a partially-restored credit from the Bonneville Power Administration (BPA). Beginning with bills mailed April 15 average PGE residential customers using 900 kilowatt hours of electricity per month are expected to see a reduction of about 6.3 percent in their bill, a monthly reduction of about $5.80. The reduction is subject to change once BPA adopts final rates for 2009 in its current rate case, which it expects to resolve this fall.

“Our customers deserve this credit and we worked hard to get it restored,” said Jim Lobdell, PGE vice president for power operations and resource strategy. “There’s more work to be done with BPA to make sure benefits are set at the right long term level, but this is an important first step.”

BPA has provided the credit to customers of investor-owned utilities for decades under the Northwest Power Act of 1980, which requires the federal power marketer to share the benefits of its system with all residential and small farm customers in the region regardless of which utility serves them. The credit was suspended last year after the Ninth Circuit Court overturned settlements BPA signed with PGE and other regional utilities to implement the benefit-sharing system, called the Residential Exchange Program.

The partial restoration this month is the result of an interim agreement PGE signed with the BPA in March to offer customers relief while the utility continues to argue for higher benefits as part of BPA’s long term rate setting process.

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