(BN  ) Enron's Lay Says California May Delay Portland Genera ,
 ----- Forwarded by Sharonda Stephens/Corp/Enron on 01/25/2001 11:22 AM -----

	"ANN SCHMIDT, ENRON CORP." <ENRONPR@bloomberg.net>
	01/25/2001 11:20 AM
		 
		 To: sharonda.stephens@enron.com
		 cc: 
		 Subject: (BN  ) Enron's Lay Says California May Delay Portland Genera


                   enron story




Enron's Lay Says California May Delay Portland General Sale
1/25/1 11:10 (New York)

Enron's Lay Says California May Delay Portland General Sale

     Houston, Jan. 25 (Bloomberg) -- Enron Corp.'s $3.1 billion
sale of Portland General Electric to Sierra Pacific Resources may
be delayed because of California's electricity crisis, Enron
Chairman Ken Lay said.
     Enron, the world's biggest energy trader, still expects to
complete the transaction this quarter as planned, Lay said. It has
won all regulatory approvals except that of the Securities and
Exchange Commission, which Lay expects in March.
     Sierra, a utility owner based in Reno, Nevada, agreed to buy
Portland General in November 1999 for $2.1 billion in cash and
$1 billion in assumed debt to add 700,000 customers in Oregon.
Sierra sells power into the California market.
     ``The sale could be delayed somewhat by the California
mess,'' Lay said at analyst conference in Houston. ``It's still
not a certainty.''
     In the meantime, Portland General will ``generate good cash
flows and good earnings,'' Lay said. Enron bought Portland General
in 1997 as a platform to sell power into California's deregulating
market.
     California's two biggest utilities, Pacific Gas & Electric
and Southern California Edison, are near bankruptcy after paying
soaring prices for power and being barred from passing the costs
on to customers. The state has stepped in to buy electricity on
behalf of the cash-strapped utilities.
     Lay and Jeffrey Skilling, Enron's president and incoming
chief executive, said the Houston-based company is shifting its
emphasis away from shaping new businesses and toward boosting
growth.
     Skilling values Enron's shares at $126, including $57 for its
wholesale-energy business and $40 for its telecommunications
division. The shares rose $1.50 to $81.25 in midmorning trading.
Sierra Pacific rose 6 cents to $15.

--Margot Habiby in the Dallas newsroom (214) 740-0873, or
mhabiby@bloomberg.net, through the Princeton newsroom
(609) 279-4000/shf

Story illustration: To compare Enron's share performance and
earnings history with other members of its industry, please see
{ENE US <Equity> RV <GO>}.

Company news:
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-0- (BN ) Jan/25/2001 16:10 GMT
mark.palmer@enron.com, meredith.philipp@enron.com, steven.kean@enron.com, 