Message-ID: <10796963.1075854994823.JavaMail.evans@thyme>
Date: Fri, 5 Oct 2001 07:12:20 -0700 (PDT)
From: lorna.brennan@enron.com
To: lorna.brennan@enron.com, gina.taylor@enron.com, courtney.barker@enron.com, 
	bret.fritch@enron.com, donna.martens@enron.com, 
	keith.petersen@enron.com, donald.vignaroli@enron.com, 
	ken.anderson@enron.com, doug.aschwege@enron.com, judy.beck@enron.com, 
	gary.choquette@enron.com, carolyn.descoteaux@enron.com, 
	l..johnson@enron.com, bryan.reinecke@enron.com, becki.sans@enron.com, 
	roger.westfall@enron.com, gabriel.chavez@enron.com, 
	stephen.dowd@enron.com, eric.gadd@enron.com, elberg.gelin@enron.com, 
	martin.gonzalez@enron.com, kevin.hyatt@enron.com, 
	david.junus@enron.com, jebong.lee@enron.com, john.millar@enron.com, 
	michael.ratner@enron.com, glen.hass@enron.com, 
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	craig.buehler@enron.com, bob.burleson@enron.com, 
	reyna.cabrera@enron.com, tom.halpin@enron.com, 
	stephen.herber@enron.com, martha.janousek@enron.com, 
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	penny.mccarran@enron.com, vernon.mercaldo@enron.com, 
	frank.oldenhuis@enron.com, larry.pavlou@enron.com, 
	loren.penkava@enron.com, john.pritchard@enron.com, 
	richard.riehm@enron.com, preston.roobaert@enron.com, 
	chris.sebesta@enron.com, frank.semin@enron.com, g..stage@enron.com, 
	bob.stevens@enron.com, vincent.strohmeyer@enron.com, 
	larry.swett@enron.com, steve.thomas@enron.com, kay.threet@enron.com, 
	lisa.valley@enron.com, steve.weller@enron.com, 
	chuck.wilkinson@enron.com, lynn.blair@enron.com, 
	rick.dietz@enron.com, steven.january@enron.com, 
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	donna.scott@enron.com, dari.dornan@enron.com, maria.pavlou@enron.com, 
	j..porter@enron.com, jim.talcott@enron.com, shelley.corman@enron.com, 
	drew.fossum@enron.com, rod.hayslett@enron.com, w..mcgowan@enron.com, 
	kay.miller@enron.com, mike.nelson@enron.com, rita.bianchi@enron.com, 
	patrick.brennan@enron.com, carol.clements@enron.com, 
	mary.darveaux@enron.com, steve.kirk@enron.com, tim.kissner@enron.com, 
	bob.thurber@enron.com, michele.winckowski@enron.com, 
	sarabeth.smith@enron.com, allen.cohrs@enron.com, 
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	jane.joyce@enron.com, stephanie.korbelik@enron.com, 
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	lindy.donoho@enron.com, pallavi.goradia@enron.com, 
	lorraine.lindberg@enron.com, tk.lohman@enron.com, 
	michelle.lokay@enron.com, mark.mcconnell@enron.com, 
	jan.moore@enron.com, kimberly.watson@enron.com, 
	paul.y'barbo@enron.com, lee.huber@enron.com, tony.pryor@enron.com
Subject: RE: WSJ Article on Enron/Portland General Potential Sale
 Discussions with Northwest Natural
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X-From: Brennan, Lorna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=LBRENNA>
X-To: Brennan, Lorna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lbrenna>, Taylor, Gina </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gtaylor10>, Barker, Courtney </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Cbarker4>, Fritch, Bret </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bfritch>, Martens, Donna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dmarten>, Petersen, Keith </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kpeterse>, Vignaroli, Donald </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dvignar>, Anderson, Ken </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kanderso>, Aschwege, Doug </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Daschwe>, Beck, Judy </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jbeck>, Choquette, Gary </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gchoque>, Descoteaux, Carolyn </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Cdescot>, Johnson, Robert L. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rjohnso3>, Reinecke, Bryan </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Breinec>, Sans Souci, Becki </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bsansso>, Westfall, Roger </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rwestfa>, Chavez, Gabriel </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gchavez>, Dowd, Stephen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sdowd>, Gadd, Eric </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Egadd>, Gelin, Elberg </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Egelin>, Gonzalez, Martin </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Notesaddr/cn=cfbaf2c9-d2d38d69-88256a07-657d9d>, Hyatt, Kevin </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Khyatt>, Junus, David </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Djunus>, Lee, Jebong </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jlee7>, Millar, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jmillar3>, Ratner, Michael </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mratner>, Hass, Glen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Ghass>, Loeffler, Michael </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mloeffl>, Stanton, Lon </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Notesaddr/cn=660caaec-2d4cd0f2-86256771-505851>, Wilson, Rob </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rwilson>, Dushinske, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jdushin>, Fowler, Bill </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bfowler>, Miller, Kent </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kmiller2>, Neubauer, Dave </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dneubau>, Neville, Sue </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Snevill1>, Williams, Jo </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jwillia3>, Barry, Mike </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mbarry>, Berg, Vicki </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Vberg>, Bolks, Sean </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sbolks>, Bollinger, Joni </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jbollin>, Bowers, Janet </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jbowers>, Branney, Theresa </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tbranne>, Buehler, Craig </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Cbuehle>, Burleson, Bob </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bburles>, Cabrera, Reyna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rcabrer>, Halpin, Tom </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Thalpin>, Herber, Stephen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sherber>, Janousek, Martha </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mjanous>, Johanson, Tim </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tjohans>, Lagerstrom, Karen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Klagers>, Lantefield, Laura </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Llantef>, Mason, Robert </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rmason1>, McCarran, Penny </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Pmccarr>, Mercaldo, Vernon </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Vmercal>, Oldenhuis, Frank </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Foldenhu>, Pavlou, Larry </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lpavlou>, Penkava, Loren </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lpenkav>, Pritchard, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jpritch>, Riehm, Richard </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rriehm>, Roobaert, Preston </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Proobaer>, Sebesta, Chris </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Csebest2>, Semin, Frank </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Fsemin>, Stage, Michael G. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mstage>, Stevens, Bob </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bsteven2>, Strohmeyer, Vincent </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Vstrohme>, Swett, Larry </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lswett>, Thomas, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sthomas1>, Threet, Kay </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kthreet>, Valley, Lisa </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lvalley>, Weller, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sweller>, Wilkinson, Chuck </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Cwilkin>, Blair, Lynn </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lblair>, Dietz, Rick </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rdietz>, January, Steven </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sjanuary>, Medeles, Gerry </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gmedele>, Nacey, Sheila </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Snacey>, Scott, Donna </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dscott1>, Dornan, Dari </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Ddornan>, Pavlou, Maria </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mpavlou>, Porter, Gregory J. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Gporter>, Talcott, Jim </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jtalcot>, Corman, Shelley </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Scorman>, Fossum, Drew </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dfossum>, Hayslett, Rod </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rhaysle>, McGowan, Mike W. </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mmcgowa>, Miller, Mary Kay </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mkmiller>, Nelson, Mike </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mnelson>, Bianchi, Rita </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Rbianchi>, Brennan, Patrick </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Pbrennan>, Clements, Carol </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Cclemen>, Darveaux, Mary </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mdarvea>, Kirk, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Skirk>, Kissner, Tim </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tkissne>, Thurber, Bob </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Bthurbe>, Winckowski, Michele </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mwincko>, Smith, Sarabeth </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Ssmith3>, Cohrs, Allen </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Acohrs>, Fiscus, John </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jfiscus>, Gilbert, Steve </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sgilbe2>, Jones, Dana </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Djones>, Joyce, Jane </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jjoyce>, Korbelik, Stephanie </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Skorbel>, Powell, Don </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Dpowell1>, Powers, Ken </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kpower1>, Harris, Steven </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Sharris1>, Donoho, Lindy </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Ldonoho>, Goradia, Pallavi </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Pgoradi>, Lindberg, Lorraine </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Llindbe>, Lohman, TK </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tlohman>, Lokay, Michelle </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Mlokay>, McConnell, Mark </O=ENRON/OU=NA/CN=RECIPIENTS/CN=MMcConne>, Moore, Jan </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Jmoore3>, Watson, Kimberly </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Kwatson>, Y'Barbo, Paul </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Pybarbo>, Huber, Lee </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Lhuber>, Pryor, Tony </O=ENRON/OU=NA/CN=RECIPIENTS/CN=Tpryor>
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Clarification:  only talks at this point in time.

 -----Original Message-----
From: =09Brennan, Lorna =20
Sent:=09Friday, October 05, 2001 9:04 AM
To:=09Taylor, Gina; Barker, Courtney; Fritch, Bret; Martens, Donna; Peterse=
n, Keith; Vignaroli, Donald; Anderson, Ken; Aschwege, Doug; Beck, Judy; Cho=
quette, Gary; Descoteaux, Carolyn; Johnson, Robert L.; Reinecke, Bryan; San=
s Souci, Becki; Westfall, Roger; Chavez, Gabriel; Dowd, Stephen; Gadd, Eric=
; Gelin, Elberg; Gonzalez, Martin; Hyatt, Kevin; Junus, David; Lee, Jebong;=
 Millar, John; Ratner, Michael; Hass, Glen; Loeffler, Michael; Stanton, Lon=
; Wilson, Rob; Dushinske, John; Fowler, Bill; Miller, Kent; Neubauer, Dave;=
 Neville, Sue; Williams, Jo; Barry, Mike; Berg, Vicki; Bolks, Sean; Bolling=
er, Joni; Bowers, Janet; Branney, Theresa; Buehler, Craig; Burleson, Bob; C=
abrera, Reyna; Halpin, Tom; Herber, Stephen; Janousek, Martha; Johanson, Ti=
m; Lagerstrom, Karen; Lantefield, Laura; Mason, Robert; McCarran, Penny; Me=
rcaldo, Vernon; Oldenhuis, Frank; Pavlou, Larry; Penkava, Loren; Pritchard,=
 John; Riehm, Richard; Roobaert, Preston; Sebesta, Chris; Semin, Frank; Sta=
ge, Michael G.; Stevens, Bob; Strohmeyer, Vincent; Swett, Larry; Thomas, St=
eve; Threet, Kay; Valley, Lisa; Weller, Steve; Wilkinson, Chuck; Blair, Lyn=
n; Dietz, Rick; January, Steven; Medeles, Gerry; Nacey, Sheila; Scott, Donn=
a; Dornan, Dari; Pavlou, Maria; Porter, Gregory J.; Talcott, Jim; Corman, S=
helley; Fossum, Drew; Hayslett, Rod; McGowan, Mike W.; Miller, Mary Kay; Ne=
lson, Mike; Bianchi, Rita; Brennan, Patrick; Clements, Carol; Darveaux, Mar=
y; Kirk, Steve; Kissner, Tim; Thurber, Bob; Winckowski, Michele; Smith, Sar=
abeth; Cohrs, Allen; Fiscus, John; Gilbert, Steve; Jones, Dana; Joyce, Jane=
; Korbelik, Stephanie; Powell, Don; Powers, Ken; Harris, Steven; Donoho, Li=
ndy; Goradia, Pallavi; Lindberg, Lorraine; Lohman, TK; Lokay, Michelle; McC=
onnell, Mark; Moore, Jan; Watson, Kimberly; Y'Barbo, Paul; Huber, Lee; Pryo=
r, Tony
Subject:=09WSJ Article on Enron/Portland General Sale to Northwest Natural

Northwest Natural In Talks With Enron Over Portland Utility=20
By Wall Street Journal staff reporters Robin Sidel, Rebecca Smith and Nikhi=
l Deogun 10/05/2001

 The Wall Street Journal B2 (Copyright (c) 2001, Dow Jones & Company, Inc.)=
=20
Enron Corp. is in advanced discussions to sell its Portland General Electri=
c utility unit to Northwest Natural Gas Co. for about $1.8 billion in cash =
and stock in a highly leveraged transaction that would eventually give Enro=
n a minority stake in Northwest, according to people familiar with the matt=
er.=20
The discussions are at a very delicate stage, and some important points nee=
d to be finalized, these people caution. The current environment could also=
 make financing such a transaction quite difficult, and board approval isn'=
t a certainty. However, should the two sides agree to terms, a deal could b=
e announced in the next few days. Northwest Natural is also expected to ass=
ume roughly $1 billion in debt.=20
Enron and Northwest Natural declined to comment.  If a transaction is consu=
mmated, it would come nearly six months after the collapse of Enron's agree=
ment to sell the utility to Sierra Pacific Resources. That transaction fell=
 apart in part because of the California energy crisis.  A purchase of Port=
land General would be a very big bite for Northwest Natural, which has a ma=
rket capitalization of just $650 million and supplies natural gas to more t=
han 500,000 residential and business customers in Oregon and Vancouver, Was=
h. Portland General is an electric utility serving more than 1.4 million cu=
stomers in Oregon.  The deal would bring together two Oregon utilities whos=
e executives and employees know each other well. Richard G. Reiten, Northwe=
st's chairman and chief executive, was president and chief operating office=
r of Portland General between 1989 and 1996, and also served on its board. =
 By buying a utility, Northwest would hope to have more bargaining power in=
 its gas purchases, enabling it to buy more product and store it when price=
s are cheap. A deal would be accretive to Northwest's earnings, people fami=
liar with the matter say. And the financial risk for Northwest Natural is s=
omewhat muted because Enron is helping to facilitate and finance the transa=
ction by agreeing to take common stock and convertible preferred stock in N=
orthwest Natural in addition to cash. Northwest Natural would finance the t=
ransaction with debt and equity offerings.  Shares of Northwest Natural wer=
e trading up $1.04 at $25.99 in 4 p.m. composite trading on the New York St=
ock Exchange, while Enron stock was down 39 cents a share at $33.10.  For E=
nron, a deal with Northwest Natural would be the latest twist in a five-yea=
r ordeal that was supposed to help the nation's biggest energy trader break=
 into California's deregulating electricity market. But the utility busines=
s proved less valuable than anticipated when Enron was prevented from selli=
ng off utility contracts that enabled it to buy electricity cheaply. And Ca=
lifornia's market developed serious problems last year that made it a less =
attractive place for Enron to do business.  Enron, which also owns a major =
gas-transmission pipeline system, has a history of buying assets and busine=
sses, learning what it can from them, and then selling off the bulk of phys=
ical assets so it can reinvest capital elsewhere.  It isn't clear where Enr=
on will put the capital to work that it garners from the sale. Its broadban=
d telecommunications business is in the doldrums and it recently said it wo=
uld invest $250 million in it this year, down from a formerly projected $75=
0 million. =09
=09
=09
=09
