UNITED STATES SECURITIES AND EXCHANGE COMMISSION

             Litigation Release No.   15920  /  September 30, 1998

             SECURITIES AND EXCHANGE COMMISSION v. ELLISON C. MORGAN AND
             PETER J. BRIX, United States District for the Southern
             District of New York, Civil Action No. 98CIV 6905 (DC)

                  The  Securities  and  Exchange Commission has sued, and
             simultaneously  reached  settlements   with,  two  Portland,
             Oregon residents, including a former member  of the Board of
             Directors  of  Portland General Corporation, on  charges  of
             insider  trading   in   connection   with   the   July  1996
             announcement   of  a  definitive  merger  agreement  between
             Portland General  and  Enron  Corporation.  The settlements,
             which  include  nearly  $340,000  in  repayment  of  illegal
             profits, civil penalties and prejudgment  interest,  as well
             as  permanent  injunctions against future violations of  the
             federal securities laws, follow the filing by the Commission
             on September 30,  1998  of  a complaint in the United States
             District Court for the Southern District of New York.

                  Named as defendants in the  complaint  are  Ellison  C.
             Morgan and Peter J. Brix.  Brix was a member of the Board of
             Directors of Portland General at the time of its merger with
             Enron.

                  According to the complaint, at a Portland General Board
             meeting  on  June 18, 1996, Brix learned that, after several
             months of negotiations, Portland General expected to reach a
             definitive merger  agreement  with Enron within six to eight
             weeks.  The complaint alleges that  following  this  meeting
             Brix  disclosed  non-public  information  about  the  merger
             negotiations  to  Morgan,  a close personal friend, and that
             Morgan  then purchased 20,000  shares  of  Portland  General
             stock on June 21 in the name of a corporation he controlled.
             Morgan purchased  the  stock  at an average price of $29.684
             per share, for a total cost of $593,682.76.

                  The complaint further alleges  that  following the July
             22,  1996  announcement  of  a  definitive merger  agreement
             between Portland General and Enron,  Portland  General stock
             opened  at $34.50, up $6.375 (22.7%) over its prior  closing
             price.  The  complaint  alleges  that Morgan sold his 20,000
             shares the day after the announcement at an average price of
             $35.25,   for  total  receipts,  net  of   commissions,   of
             $702,974.49.    Morgan's   profits   on   the   trades  were
             $109,291.73.

                  In  settlement of the Commission's lawsuit, Morgan  and
             Brix consented to the issuance of permanent injunctions that
             will prohibit  each  man from committing fraud in connection
             with the purchase or sale  of  securities,  in  violation of
             Section  10(b)  of  the Securities Exchange Act of 1934  and
             Rule 10b-5 thereunder.   Morgan  further  agreed to disgorge
             his illegal profits of $109,291.73, plus a  civil penalty of
             an equal amount and prejudgment interest of $11,224.56,  for
             a  total  of  $229,808.02.   Brix also agreed to pay a civil
             penalty of $109,291.73, equal to Morgan's disgorgement.  The
             two consented to issuance of the  permanent  injunctions and
             other  relief  without admitting or denying the  allegations
             contained in the Commission's complaint.