Portland General Electric

Last updated
Portland General Electric Company
Type Public company
Industry Public utility
Founded1888;135 years ago (1888)
Headquarters Portland, Oregon, U.S.
Products Electric power
Revenue US$1.9 billion (2015) [1]
US$0.3 billion (2015) [1]
US$0.2 billion (2015) [1]
Total assets Increase2.svg US$7.2 billion (2015) [1]
Total equity Increase2.svg US$2.3 billion (2015) [1]
Number of employees
2,646 (2016) [2]
Website portlandgeneral.com

Portland General Electric (PGE) is a Fortune 1000 public utility based in Portland, Oregon. It distributes electricity to customers in parts of Multnomah, Clackamas, Marion, Yamhill, Washington, and Polk counties - 44% of the inhabitants of Oregon. Founded in 1888 as the Willamette Falls Electric Company, the company has been an independent company for most of its existence, though was briefly owned by the Houston-based Enron Corporation from 1997 until 2006 when Enron divested itself of PGE during its bankruptcy.

Contents

Notably, PGE does not serve all of Portland. Its service territory comprises most of Portland west of the Willamette River, sharing most of the city east of the river with Pacific Power.

PGE produces and purchases energy primarily from coal and natural gas plants, as well as hydroelectric power from dams on the Clackamas, Willamette and Deschutes rivers. [3] Between 1976 and 1993, PGE operated Trojan, the only nuclear power plant in Oregon. Trojan was the subject of three Oregon initiatives to shut it down. The initiatives failed, but the company elected to close the plant twenty years early.

History

PGE Boiler #16 in 1988 Portland General Electric boiler 16 west side - Portland Oregon.jpg
PGE Boiler #16 in 1988

The utility was founded in 1888 by Parker F. Morey and Edward L. Eastham as Willamette Falls Electric Company. On June 3, 1889, it sent power generated by one of four brush arc light dynamos at Willamette Falls over a 14-mile electric power transmission line to Portland, the first US power plant to do so. [4] [5] [6] On August 6, 1892, Morey, Frederick Van Voorhies Holman, and Henry Failing formed the Portland General Electric Company. [4] It was funded by General Electric and the investment arm of Old Colony Trust, with $4.25 million in capital. [4] The newly formed PGE Company purchased Willamette Falls Electric and the Albina Light & Water Company in 1892. [4]

Previous logo PortlandGELogo.png
Previous logo

Less than a year later, in May 1893, PGE purchased the City-Eastside Electric Light Plant, a municipal power company. [4] E. Kimbark MacColl, who chronicled the history of Portland, referred to it "a generous gift to a private company at the expense of future taxpayers" since it was constructed for a cost of $40,342 and sold 15 months later for $27,000. [4]

In 1903, Henry W. Goode, the president of PGE, decided to make PGE a "popular public utility." His vision was for the company to light the Lewis and Clark Centennial Exposition in 1905. in 1903, he traveled to the east coast to raise three thousand dollars from shareholders. His plan went through, and Thomas H. Wright was put in charge of designing the lighting for the fair.

PGE also purchased the Union Power Company in 1905, and the Vancouver Electric Light & Power Company in 1906. [4] In 1906, PGE, Portland Railway Company, and Oregon Water Power & Railway Company merged, becoming the Portland Railway, Light and Power Company (PRL&P). [4] It was the only streetcar operator within Portland city limits, and the predecessor of the modern PGE. [4]

The company name became Portland Electric Power Company (PEPCO) in 1932. It was reorganized in 1948 as PGE.

On March 1, 1939, PEPCO defaulted on interest bonds that had been issued in March 1934. [7] The bonds were pledged with PGE (the electric subsidiary) and Portland Traction Company (the streetcar subsidiary) as collateral, with Guaranty Trust as trustee. [7] PEPCO filed for Chapter X bankruptcy (now known as Chapter 9) on April 3, 1939, and was assigned District Judge James Alger Fee. [7] The proceedings were later called "one of the most prolonged and complicated series of legal proceedings in Portland's history". [7]

The reorganization and bond default was brought on by PGE's difficult negotiations with Bonneville Power Administration, the death of Seattle City Light's visionary J. D. Ross, and the indecision created by the possible creation of a public utility district in PGE's territory. [7] The Columbia Valley Authority project would have allowed CVA to purchase utilities such as PGE. [7]

PGE survived bankruptcy partially through cheap power purchases from BPA beginning in the fall of 1939, and by the end of 1941 they showed net profits. [7] In the meantime, Ormond R. Bean, the Oregon Public Utility Commissioner, forced PGE to lower its rates. [7] Ultimately, PEPCO and PGE were saved by World War II, which led to the construction of three Kaiser Shipyards and of Vanport City, Oregon to support them. [7] By 1945, PGE derived nearly $400,000 in revenue from the two Kaiser shipyards in Oregon. [7] In August 1946, after the war, they were able to sell Portland Traction for $8 million in cash. Judge Fee ruled the bankruptcy reorganization complete on June 29, 1946. [7]

On July 1, 1997, Enron Corporation bought PGE for $2 billion in stock and $1.1 billion in assumed debt. Then in 1999, and again in 2001, Enron attempted to sell PGE to other investor-owned utilities including Portland-based NW Natural. [8] The corporate officers of PGE claimed that this utility was not involved in the financial mis-dealings of its owner, pointing to the fact that many of its employees suffered when Enron froze the 401(k) retirement plan and were unable to sell the rapidly declining stock. However, Ken Harrison and Joseph Hirko, PGE's CEO and CFO respectively at the time of the Enron merger were charged on several felony level counts primarily related to financial misrepresentation regarding Enron Broadband Services which had its headquarters within the World Trade Center complex that comprises PGE's corporate offices. In addition Timothy Belden, head of the West Coast Trading Desk and John Forney, an energy trader who invented various electricity trading strategies such as the Death Star , operated from the trading floor in the PGE corporate offices and were also convicted of financial crimes related to the California Electricity Crisis.

Early attempts to convert the company to a public utility district

Ballot measures have been filed by citizens several times since the 1960s to convert some or all of PGE into a public utility district (PUD), the latest of these being in 2003. Most were unsuccessful, but an exception was in 1999, when PGE announced it was selling its customer base in St. Helens, Scappoose, and Columbia City to West Oregon Electric PUD for $7.9 million. The terms of this sale proposed to leave the physical assets of the distribution system —the poles, wires and other components— owned by Enron, who would then manage this system as a contractor exempt from state regulation. Voter distrust of both Enron and PGE was severe enough for voters to approve the measure, despite $71,592 being spent in advertisements to oppose it, in comparison to the $2,304 spent by supporters. This resulted in those three cities becoming part of the Columbia River PUD on terms far more favorable to the customers; electricity rates immediately dropped in these cities, and remain lower than those for current PGE customers.

Attempted acquisition by Texas Pacific Group

Concerned by uncertainty that the Enron bankruptcy would bring, several local governments began investigation into acquiring PGE by condemnation. These studies ended after the announcement on November 17, 2003, that a group called Oregon Electric Utility, led by former governor Neil Goldschmidt and backed by Texas Pacific Group, offered to buy PGE for $2.35 billion. This was the sole bid received by the bankruptcy judge, who approved the bid. When details that Goldschmidt had sexually assaulted a minor in the 1970s emerged, he withdrew from the negotiations, and was replaced by Peter O. Kohler, president of the Oregon Health and Science University.

Discomfort over the Texas Pacific purchase led to further voter initiatives to convert parts of PGE into PUDs. PGE defeated measures in Multnomah County (November 14, 2003), Yamhill County (March, 2004), and Clackamas County (May 18, 2004). Also during this time period, PGE received notice of a strike by 900 union workers, effective March 8, 2004, represented by the International Brotherhood of Electrical Workers. Points over which the negotiations broke down included retiree medical benefits as well as losses of the members' 401(k) plan. This labor dispute was resolved shortly afterward, and the union agreed to a new contract.

The TPG purchase offer was denied by the Oregon Public Utility Commission, a three-member regulatory board, on March 10, 2005. [9] With the rejection of the Texas Pacific Group's offer, the City of Portland announced it contacted Enron to resume negotiating an offer to purchase PGE. On April 19, 2005, Portland city officials announced that they were willing to spend 7.5 million in attorneys' fees to buy the utility. On July 6, the City Council unanimously adopted a measure to finance the acquisition of PGE by the sale of $3 billion in bonds.

However, Enron interim CEO Stephen Cooper called off negotiations on July 20, 2005. He explained that he did not "see a plausible solution under which our teams could reach an agreement that would lead to a transaction closing in a timely fashion". [10] Cooper addressed several causes for the termination, including the refusal of the city to pay a $50 million deposit on the sale. [11] The same day, Governor Ted Kulongoski vetoed a bill that would create a public corporation to purchase PGE.

Independence from Enron

In April, 2006, shares in a newly independent PGE were issued as part of an Enron distribution to its creditors. [12]

Power plants

Thermal power plants

Hydroelectric plants

Part of the Biglow Canyon Wind Farm, with a turbine under construction Biglow Canyon Wind Farm under construction.jpg
Part of the Biglow Canyon Wind Farm, with a turbine under construction

Renewable

Grand Total: 3414 MWe

Renewable energy sales

In 2008, 2009, and 2010, the utility ranked #2 in nationwide sales of renewable energy to customers according to the National Renewable Energy Laboratory. [14] [15] [16]

Corporate officers

PGE currently has 11 corporate officers, who include Maria Pope (CEO and president).

See also

Related Research Articles

<span class="mw-page-title-main">Willamette Falls</span> Waterfall on the Willamette River in Clackamas County, Oregon, United States

The Willamette Falls is a natural waterfall on the Willamette River between Oregon City and West Linn, Oregon, in the United States. It is the largest waterfall in the Northwestern United States by volume, and the seventeenth widest in the world. Horseshoe in shape, it is 1,500 feet (460 m) wide and 40 feet (12 m) high with a flow of 30,849 cu ft/s, located 26 miles (42 km) upriver from the Willamette's mouth. Willamette Falls is a culturally significant site for many tribal communities in the region.

GenOn Energy Holdings, formerly Mirant Corporation, was a subsidiary of GenOn Energy, and is now a part of NRG Energy.

The Chelan County Public Utility District, or Chelan County PUD, provides electric, water, wastewater public utility and telecommunications services in Chelan County, in north-central Washington, USA.

<span class="mw-page-title-main">Exelon</span> American utility company

Exelon Corporation is a public utility headquartered in Chicago, Illinois, and incorporated in Pennsylvania. Exelon is the largest electric parent company in the United States by revenue and is the largest regulated electric utility in the United States with approximately 10 million customers. The company is ranked 99th on the Fortune 500.

<span class="mw-page-title-main">PacifiCorp</span> Electric power company serving the Western United States

PacifiCorp is an electric power company in the western United States.

NW Natural, formerly Northwest Natural Gas Company, is an American publicly traded utility headquartered in Portland, Oregon, United States. Primarily a natural gas distributor, the company services residential, commercial, and industrial customers in Western Oregon and Southwest Washington in the Pacific Northwest. NW Natural also owns water utilities. Founded in 1859, the company has approximately 680,000 customers and revenues of nearly one billion in US dollars annually.

<span class="mw-page-title-main">Peggy Fowler</span>

Peggy Y. Fowler is an American businessperson in the state of Oregon. She was the chief executive officer (CEO) of Portland General Electric (PGE), and as of 2007 was the 11th highest-paid CEO in Oregon. A native of Idaho, she worked for PGE, a private electric utility, from 1974 to 2009.

<span class="mw-page-title-main">Biglow Canyon Wind Farm</span>

Biglow Canyon Wind Farm is an electricity generating wind farm facility in Sherman County, Oregon, United States. It is owned by Portland, Oregon-based Portland General Electric and began operations in 2007. With the completion of phase 3 of the project it has a generating capacity of 450 megawatts. It is located roughly five miles (8 km) northeast of Wasco, Oregon, and about ten miles (16 km) southeast of Rufus, Oregon. Biglow Canyon Wind Farm covers 25,000 acres (10,000 ha) in the Columbia River Gorge.

The Oak Grove Hydroelectric Project is a 44 megawatt hydroelectric plant operated by Portland General Electric (PGE) on the Oak Grove Fork Clackamas River. Water for this project is held by three lakes, built between 1923 and 1956. The dam creates the impoundment Lake Harriet.

<span class="mw-page-title-main">Centralia Power Plant</span>

Centralia Big Hanaford power plant is a coal-fired power plant supplemented with natural-gas-fired units. It is located east of Centralia, Washington, United States in Lewis County. It is the only commercial coal-fired power plant in the State of Washington.

<span class="mw-page-title-main">Snohomish County Public Utility District</span> Public utility district of Snohomish County and Camano Island in Washington

The Snohomish County Public Utility District is a public utility agency providing power to over 367,000 customers in Snohomish County and on Camano Island, Washington. It provides water service to about 23,000 customers in the northeast section of the Snohomish County.

<span class="mw-page-title-main">Cazadero, Oregon</span> Unincorporated community in the state of Oregon, United States

Cazadero is an unincorporated historic locale in Clackamas County, Oregon, United States. Cazadero was a station on the Estacada interurban railway line of the Portland Railway, Light and Power Company (PRL&P) and later Portland Electric Power Company (PEPCO), near where the power plant of the PEPCO-owned Cazadero Dam was located on the Clackamas River.

<span class="mw-page-title-main">Boardman Coal Plant</span> Coal-fired power plant located in Boardman, Oregon

The Boardman Coal Plant was a coal-fired power plant located in Boardman, Oregon. The facility had a nameplate capacity of 550 megawatts (MWs) and is owned by Portland General Electric. In 2010, the plant was the only remaining coal powered plant in Oregon and received much attention from regional media due to its being the largest single source of greenhouse gas emissions in the state with environmental groups such as the Sierra Club calling for its closing.

<span class="mw-page-title-main">Portland Railway, Light and Power Company</span> Defunct transport and utility company of Portland, Oregon

The Portland Railway, Light and Power Company (PRL&P) was a railway company and electric power utility in Portland, Oregon, United States, from 1906 until 1924.

<span class="mw-page-title-main">Portland General Electric Company Station "L" Group</span> Historic building complex in Portland, Oregon, U.S.

The Portland General Electric Company Station "L" Group in southeast Portland in the U.S. state of Oregon was a cluster of six industrial buildings listed on the National Register of Historic Places. Built between 1910 and 1929 by Portland General Electric (PGE), it was added to the register in 1985. In 1986, PGE gave Station L and 18.5 acres (7.5 ha) of land to the Oregon Museum of Science and Industry (OMSI). The Station L turbine is a central feature of OMSI's Turbine Hall. The complex was listed on the National Register in 1985, and was delisted in 2020.

<span class="mw-page-title-main">Bernard Goldsmith</span> American politician

Bernard Goldsmith was a Bavarian-American businessman and politician. He is best remembered as the 19th mayor of Portland, Oregon, serving from 1869 to 1871, and as the first Jew to hold that position.

<span class="mw-page-title-main">George Washington Weidler</span> Transportation agent, merchant

George Washington Weidler was a prominent 19th-century transportation agent, investor, and business owner in Portland in the U.S. state of Oregon. Born in Pennsylvania, he moved as a young man to St. Louis, Missouri, where he began a career in merchandising and shipping. His work gradually took him further west, to Utah Territory, Nevada Territory, California, and in 1866 to Oregon, where he remained for the rest of his life.

<span class="mw-page-title-main">Clark Public Utilities</span>

Public Utility District No. 1 of Clark County, doing business as Clark Public Utilities and commonly referred to as Clark PUD, is a public utility district in Clark County, Washington. Clark PUD provides electric service to all of Clark County except for the Georgia-Pacific Camas Paper Mill in the City of Camas, and its water service area covers the majority of the county, except the Cities of Battle Ground, Camas, Ridgefield, Washougal, and Vancouver, which have their own municipal water systems.

<span class="mw-page-title-main">T. W. Sullivan Hydroelectric Plant</span> Dam

Portland General Electric's (PGE) T. W. Sullivan Hydroelectric Plant is a hydroelectric dam on the Willamette Falls built between 1888 and 1895. It is the source of the nation's first long-distance power transmission. The plant first opened with Station A in 1889. In 1895 a second powerhouse was built on the same dam, Station B, and Station A was removed. Station B. In 1953 Station B was renamed after the engineer, Thomas Sullivan, who designed it and the nearby paper mills. The Willamette Falls Paper Company was on the northwest bank, whereas the Blue Heron paper mill was across the river in Oregon City. By that year, the plant was generating between 11,000 and 17,500 kilowatts, which it still does today. PGE's Sullivan Plant at Willamette Falls is one of only a few dozen hydro-plants in the country officially designated as "Green." In the 1920s a portion of the paper mill was put on top of the dam, which is still operating.

References

  1. 1 2 3 4 5 "Financial Statements for Portland General - Morningstar". Morningstar.com. 2015-12-31. Retrieved 2016-11-06.
  2. "Portland General Annual Report". 2015-12-31. Retrieved 2016-11-06.
  3. "Corporate Information: How We Generate Energy | PGE". Archived from the original on 2009-10-11. Retrieved 2009-10-09.
  4. 1 2 3 4 5 6 7 8 9 MacColl, E. Kimbark (1976). The Shaping of a City: Business and Politics in Portland, Oregon 1885 to 1915. Portland, Oregon: The Georgian Press Company. OCLC   2645815.
  5. Home Willamette Falls Heritage Foundation. "A New River of Current:The Story of Station A and the dawn of Electric Power Transmission". Home Willamette Falls Heritage Foundation. Archived from the original on 22 January 2011. Retrieved 3 June 2011.
  6. Madrigal, Alexis (June 3, 2010). "June 3, 1889: Power Flows Long-Distance". Condé Nast Digital. Retrieved 3 June 2011.
  7. 1 2 3 4 5 6 7 8 9 10 11 MacColl, E. Kimbark (1979). The Growth of a City: Power and Politics in Portland, Oregon 1915 to 1950. Portland, Oregon: The Georgian Press. ISBN   0-9603408-1-5.
  8. Hill, Gail Kinsey. NW Natural, PGE deal called off. The Oregonian , May 17, 2002.
  9. "Commission Rejects PGE Sale". PUC. PUC. Retrieved 2016-11-06.
  10. "Sign in to OregonLive.com". The Oregonian.
  11. Enron says no to PGE deal
  12. "Enron Sets Portland General Free". April 3, 2006. Retrieved March 28, 2018.
  13. "Oregon's last coal power plant shuts down for good". KGW8.
  14. National Renewable Energy Laboratory (2009-04-13). "NREL Highlights Utility Green Power Leaders". United States Department of Energy . Retrieved 2010-03-25.
  15. National Renewable Energy Laboratory (2010-05-03). "NREL Highlights Utility Green Power Leaders". United States Department of Energy . Retrieved 2010-05-03.
  16. National Renewable Energy Laboratory (2011-05-09). "NREL Highlights 2010 Utility Green Power Leaders". United States Department of Energy . Retrieved 2011-05-10.