April 30, 2007

Portland General Electric reports first quarter 2007 earnings results
Reaffirms 2007 guidance

Portland, Ore. — Portland General Electric Company (NYSE: POR) today reported net income of $55 million, or $0.88 per diluted share, for the quarter ending March 31, 2007, compared to a net loss of ($6) million, or ($0.09) per diluted share, for the first quarter 2006. Results were primarily driven by improved margins from higher retail energy deliveries and the availability of the Boardman power plant. Additionally, results were positively impacted by the deferral of a portion of Boardman replacement power costs and a settlement between Portland General Electric (PGE) and certain California parties on prior wholesale energy transactions.

“We're pleased with the financial results for the first quarter,” said Peggy Fowler, CEO and president of PGE, “and we remain focused on meeting our growing customer demand through strong operations, our capital investments and the execution of our Integrated Resource Plan.”

First Quarter 2007 Summary

• Total retail energy deliveries for the period increased 1.6 percent to 5,100,000 MWhs in 2007 from 5,020,000 MWhs in 2006.
  
  
• Total operating revenues increased by 14 percent to $436 million from $381 million in 2006. This was primarily the result of an increase in energy deliveries, a net rate increase in January 2007, higher wholesale sales and the conversion of Regional Power Act (RPA) benefits to all cash from a combination of cash and a below-market power purchase.
  
  
• Purchased power and fuel expense decreased by $29 million due primarily to the incremental cost of replacing Boardman’s generation during the plant’s outage in the first quarter of 2006, as well as unrealized net losses on derivative activities in last year’s first quarter. In addition, first quarter 2007 results reflect the deferral, for future rate recovery, of $20.4 million of Boardman replacement power costs and an approximate $6 million reduction in the Company’s wholesale credit reserve related to the settlement with certain California parties involving wholesale energy transactions in 2000-2001. These decreases were partially offset by increases in both total system load and average variable power costs and by the termination of the RPA below-market power purchase.
  
  
• Production, distribution, administrative and other expenses increased by $7 million compared to last year’s first quarter due primarily to higher employee benefit expenses and insurance costs partially offset by a reduction in repair and maintenance expenses at Boardman.
  
  
• Depreciation and amortization expense decreased $12 million from the first quarter of 2006. The decrease was primarily attributable to reductions in both depreciation rates for utility plant and in the authorized recovery of Trojan decommissioning costs, both of which became effective in January 2007 pursuant to the Public Utility Commission of Oregon (OPUC) order in PGE’s general rate case.
  
  
• Other income increased $4 million due primarily to accrued interest (retroactive to January 2006) on the $26.4 million deferral of excess power costs associated with the Boardman outage and from higher allowance for equity funds used during construction.

Capital Expenditures
Capital expenditures in 2007 are estimated to be $439 million compared to actual 2006 expenditures of $371 million. Capital expenditures for 2007 consist of approximately $203 million for Phase I of the Biglow Canyon Wind Farm, $177 million for ongoing production, transmission and distribution facilities, $42 million for hydro relicensing projects and $17 million for Port Westward. Capital expenditures do not include the advanced metering infrastructure project, which the Company continues to pursue with the OPUC, or Phases II and III of the Biglow Canyon Wind Farm, which are under review.

2007 Earnings Guidance
PGE reaffirms its full-year 2007 earnings guidance of $1.90 to $2.00 per diluted share. Guidance includes approximately $0.30 per diluted share due to a $20.4 million pre-tax deferral related to the Boardman outage as well as the associated interest and Senate Bill 408 impacts.

Overview of Recent Developments
Biglow Canyon Wind Farm
On March 2, 2007, PGE filed a rate application with the OPUC seeking an increase of approximately $13 million in annual revenue requirements for full recovery of costs related to the first phase of the Biglow Canyon Wind Farm. Phase I of the project will have a capacity of 125 MW, with completion expected by December 2007 at a total cost of approximately $260 million (including AFDC). The application includes a rate increase of approximately 1 percent and proposes to maintain PGE’s currently allowed ROE and equity capital structure of 10.1 percent and 50 percent, respectively. Biglow Canyon Phase I fulfills the Company’s commitment to add renewable energy as outlined in PGE’s last Integrated Resource Plan.

Advanced Metering Infrastructure (AMI)
On March 7, 2007, PGE filed a tariff with the OPUC seeking an increase of approximately $13 million in annual revenue requirements related to the deployment of over 800,000 new advanced meters. The AMI network would facilitate daily, two way communications between PGE and customers, and would provide improved services while achieving operational efficiencies and cost reductions. The proposed tariff would run for approximately two and a half years, coinciding with the period over which PGE deploys the meters. After the tariff period ends, the project’s costs, net of savings, will be incorporated into a future general rate case. Once fully deployed, at an estimated capital cost of $130 million, the Company estimates that AMI will save approximately $16 million annually in operating expenses, providing future benefits to customers.

Port Westward
The commercial operation of the Port Westward Generating Plant, a new 400 megawatt gas-fired power plant near Clatskanie, Ore., has been delayed for additional inspections and repairs prior to final testing and acceptance by PGE. The Company does not expect its power costs to be materially affected by the delay, and the inspection and repair costs will be covered under PGE’s fixed-price construction contract. PGE expects the plant to be available for commercial power generation in June, with inclusion of the associated costs and benefits to be implemented in rates at that time.

Boardman Plant Power Cost Deferral
The Boardman Power Plant was out of service for repairs from late October 2005 to July 1, 2006. On February 12, 2007, the OPUC issued an order authorizing PGE to defer for recovery $26.4 million of the $46 million requested for excess replacement power costs related to a portion of the Boardman outage. PGE recorded $6 million of the deferral in the fourth quarter of 2006 and $20.4 million, plus $3 million of accrued interest (retroactive to January 1, 2006), in the first quarter of 2007. Recovery of the deferred amounts will be determined in a future ratemaking proceeding that will include a prudency review and an earnings test.

California Receivables and Refunds
On March 12, 2007, PGE reached a settlement that resolves all issues between the Company and certain California parties relating to wholesale energy transactions in the western markets during the January 1, 2000 through June 20, 2001 time period. The settlement has been filed with the Federal Energy Regulatory Commission for its approval. If approved, PGE currently estimates that it will receive a net cash payment from the California Power Exchange of approximately $27 million, which includes net interest on its past due receivables. PGE had previously established a reserve of $40 million related to these matters. Based upon the terms of the settlement, PGE adjusted the reserve to approximately $34 million at March 31, 2007 and recorded a pre-tax increase to income of approximately $6 million in the first quarter of 2007.

Stock Distribution
The Disputed Claims Reserve (DCR) continues to report distributions of PGE common stock to Enron creditors with allowed and settled claims. On April 2, 2007, approximately 8,050,000 shares were distributed, reducing the total shares held in the DCR to approximately 38 percent of total shares outstanding.

First Quarter 2007 Earnings Call and Webcast April 30, 2007
PGE will host a conference call with financial analysts on Monday, April 30, 2007, at 5 p.m. EDT. The conference call will be webcast live in our Investors section. A replay of the call will be available beginning at 7 p.m. EDT on Monday, April 30 through Monday, May 7.

Peggy Fowler, CEO and president; Jim Piro, executive vice president, CFO and treasurer; and Bill Valach, director of investor relations will participate in the call. Management will respond to questions following formal comments. The attached consolidated income statements, balance sheets, cash flow statements and supplemental operating statistics are an integral part of this earnings release.

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