April 19, 2007
Port Westward plant operation delayed
Portland, Ore. — Portland General Electric Company (NYSE: POR) today announced that the commercial operation of its Port Westward Generating Plant, a new 400 megawatt gas-fired power plant near Clatskanie, Ore., will be delayed while the plant contractor conducts additional inspections and repairs prior to final testing. The plant, which had been expected to go into service in late April, is now expected to be in service in June 2007.
“While we expected to see Port Westward completed this month, we share the contractor’s concern that the plant should not be put into service until the inspections and repairs are finished,” said Steve Quennoz, PGE vice president for power supply and generation. “This is a long-term investment for our customers and shareholders, and we appreciate the contractor’s diligence.”
The Port Westward plant is still under the custody of Black & Veatch Corporation, the general contractor that is building the facility for PGE. Black & Veatch was preparing final functional and performance tests when technicians discovered damage to blades in the compressor section of the plant’s turbine.
PGE does not expect its power costs to be materially affected by the delay, and the total cost of the plant is now estimated to be in the range of $280 million to $290 million. Inspection and repair costs will be borne by the contractor under a fixed-price contract with PGE, which protects the utility against additional costs incurred prior to its acceptance of the plant.
Black & Veatch is a leading global engineering, consulting and construction company. Mitsubishi Heavy Industries, Ltd. manufactured and is supervising installation of the G-class turbine that will make Port Westward the most efficient gas-fired generating plant in the Northwest.
PGE officials expect the plant to be available for commercial power generation in June and to include associated costs and benefits in the utility’s rates at that time.
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About Portland General Electric Company
Portland General Electric, headquartered in Portland, Ore., is a fully integrated electric utility that serves approximately 793,000 residential, commercial and industrial customers in Oregon.
Safe Harbor Statement
Statements in this news release that relate to future plans, objectives, expectations, performance, events and the like may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words including, but not limited to, “anticipates,” “believes,” “intends,” “estimates,” “promises,” “expects,” “should,” “conditioned upon” and similar expressions. Investors are cautioned that any such forward-looking statements are subject to risks and uncertainties, including matters and events related to the deferral of excess power costs for the Boardman Plant outage; completion of the Port Westward power plant; completion and rate treatment of Phase I of the Biglow Canyon Wind Farm; changes in weather, hydroelectric, and energy market conditions, which could affect the availability and cost of fuel or purchased power; the effect of the Oregon law related to utility rate treatment of income taxes; and the outcome of various legal and regulatory proceedings. As a result, actual results may differ materially from those projected in the forward-looking statements. All forward-looking statements included in this news release are based on information available to the Company on the date hereof and such statements speak only as the date hereof. The Company assumes no obligation to update any such forward-looking statement. Prospective investors should also review the risks and uncertainties listed in the Company’s most recent Annual Report on Form 10-K and the Company’s reports on Forms 8-K and 10-Q filed with the United States Securities and Exchange Commission, including Management’s Discussion and Analysis of Financial Condition and Results of Operations and the risks described therein from time to time.
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Source: Portland General Electric Company
For more information, contact:
Steve Corson, PGE,
503-464-8444
