Peggy asked that I update you on our earnings forecast for this year.

PGE had an exceptional April with PGE IBIT of $39.8 million compared to $5.2
million budget and Net Income of $20.9 million compared to -$.7 million plan. 
Earnings for the month were driven primarily by our wholesale business and
outstanding plant operations.  Actual net variable power cost for April came
in at $.2 million compared to our budget of$43.9 million.  Retail loads were
off for the month which created additional length along with strong wholesale
prices in the preschedule and real time markets.  

April results do not include any charges for Enron overheads which we would
expect to start occurring in May.  Kirk Stevens and Mark Lindsey are working
on getting these charges allocated to PGE.

For Q2, our Current Forecast for PGG is to over perform at plan by $1.7
million IBIT and 6.3 net income.  The primary driver will still be power cost
for May and June.   Recent downward movement in the forward curve has reduced
the value of our long position in May and June on a forecast basis.  However,
the preschedule and real time markets continue to be strong.  If this trend
continues then we should over perform in both May and June.  How much is still
highly dependent on wholesale prices, our plant operations, retail loads and
weather conditions in the West.  

For the year, we are still on track to make our plan but a similar situation
to the second quarter exists for us in the third and fourth quarter.  We are
holding on to some length in our retail book to hedge our retail load and
plant operations.  The value of that length changes on a forecast basis based
upon movement in the forward curve.  However, we continue to see the
preschedule and real time market trade higher than the forward curve.  In
addition, as we discussed before, we have a regulatory mechanism in place
where by we share our overall net variable power cost with customers.  Our
current power cost forecast has us in the 90 / 10 sharing bandwidth with
collection of about $18 million from customers.  If wholesale prices in the
preschedule and real time market continue to be strong then we will move into
the dead band and could move into the refund zones.   In addition to power
cost,  we put in place a goal this year of reducing O&M by 7% from the budget
and we are on target to meet this goal.

Please call me at 503-464-8982 or e-mail me if you have any questions.
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