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<SEC-DOCUMENT>0000950134-09-007380.txt : 20090413
<SEC-HEADER>0000950134-09-007380.hdr.sgml : 20090413
<ACCEPTANCE-DATETIME>20090413093140
ACCESSION NUMBER:		0000950134-09-007380
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		4
FILED AS OF DATE:		20090413
DATE AS OF CHANGE:		20090413

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PORTLAND GENERAL ELECTRIC CO /OR/
		CENTRAL INDEX KEY:			0000784977
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC SERVICES [4911]
		IRS NUMBER:				930256820
		STATE OF INCORPORATION:			OR
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-143472
		FILM NUMBER:		09745885

	BUSINESS ADDRESS:	
		STREET 1:		121 SW SALMON ST
		STREET 2:		1WTC0501
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97204
		BUSINESS PHONE:		5034647779

	MAIL ADDRESS:	
		STREET 1:		121 SW SALMON STREET
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97204
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>v52074b5e424b5.htm
<DESCRIPTION>424B5
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<FONT style="font-size: 9pt; font-family: Arial, Helvetica; color: #D81E05">The
information in this preliminary prospectus supplement and the
accompanying prospectus is not complete and may be changed. This
preliminary prospectus supplement and the accompanying
prospectus are not an offer to sell these securities and we are
not soliciting an offer to buy these securities in any
jurisdiction where an offer, solicitation or sale is not
permitted.<BR>
</FONT>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>Filed Pursuant to Rule 424(b)(5)<BR>
    Registration Number 333-143472</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica; color: #D81E05">Subject
    to Completion, Dated April&#160;13, 2009</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Preliminary
    prospectus supplement to prospectus dated June&#160;1,
    2007</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 22pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Portland General
    Electric Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <IMG src="v52074b5v5207400.gif" alt="(PORTLAND GENERAL ELECTRIC LOGO)"><B><FONT style="font-family: Arial, Helvetica">
    </FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 18pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">$&#160;&#160;&#160;&#160;&#160;First
    Mortgage Bonds,<BR>
    &#160;&#160;&#160;&#160;&#160;% Series,
    Due&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2019</FONT></B>
</DIV>
</DIV><!-- End box 1 -->

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
<DIV style="width: 100%; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 2 -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We are offering $&#160;&#160;&#160;&#160;&#160; aggregate
    principal amount of First Mortgage
    Bonds,&#160;&#160;&#160;&#160;&#160;% Series,
    due&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2019 (the &#147;Bonds&#148;). We will pay interest on the Bonds
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    of each year,
    beginning&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2009. The Bonds will mature
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2019. The Bonds will be our senior secured obligations and will
    be secured, equally and ratably with all of our other first
    mortgage bonds now outstanding or hereafter issued under our
    Mortgage, by a first mortgage lien on substantially all of our
    now owned or hereafter acquired tangible utility property
    (except cash, securities, accounts receivable, motor vehicles,
    materials and supplies, fuel, certain minerals and mineral
    rights, property located outside of the states of Oregon,
    Washington, California, Arizona, New Mexico, Idaho, Montana,
    Wyoming, Utah, Nevada, and Alaska, and certain other property)
    subject, however, to certain permitted encumbrances and limited
    exceptions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We may redeem the Bonds at any time and from time to time, in
    whole or in part, as described in this prospectus supplement
    under the caption &#147;Description of the Bonds&#151;Optional
    Redemption.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Bonds will not be listed on any securities exchange or
    included in any automated quotation system. Currently, there is
    no public market for the Bonds. Please read the information
    provided under the caption &#147;Description of the Bonds&#148;
    in this prospectus supplement for a more detailed description of
    the Bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>Investing in the Bonds involves risk. See &#147;Risk
    Factors&#148; beginning on
    <FONT style="white-space: nowrap">page&#160;S-5.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or passed upon the adequacy or accuracy of this
    prospectus. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="78%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="left" valign="bottom">
    <B>Per Bond</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="left" valign="bottom">
    <B>Total</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Underwriting discounts and commissions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Proceeds, before expenses, to Portland General Electric Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The public offering price set forth above does not include
    accrued interest, if any. Interest on the Bonds will accrue from
    April&#160;&#160;&#160;, 2009.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 18pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-family: Arial, Helvetica">Deutsche Bank
    Securities </FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-family: Arial, Helvetica">  Wachovia
    Securities</FONT></B></TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The date of this prospectus supplement is
    April&#160;&#160;&#160;, 2009.
</DIV>
</DIV><!-- End box 2 -->

<P align="left" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information contained in or
    incorporated by reference in this prospectus supplement and the
    accompanying prospectus. We have not, and the underwriters have
    not, authorized anyone to provide you with information that is
    different. We are not, and the underwriters are not, making an
    offer to sell these securities in any jurisdiction where the
    offer is not permitted. You should not assume that the
    information provided by or incorporated by reference in this
    prospectus supplement or the accompanying prospectus is accurate
    as of any date other than the date of the document containing
    the information.</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Prospectus
    Supplement</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#101'>About this Prospectus Supplement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#102'>Prospectus Supplement Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#103'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#104'>Cautionary Statement Regarding Forward-Looking
    Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#105'>Ratios of Earnings to Fixed Charges</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#106'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#107'>Description of the Bonds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-11
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#108'>Certain U.S. Federal Tax Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-20
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#109'>Book-Entry System</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-25
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#110'>Underwriting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-28
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#111'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#112'>Incorporation of Certain Documents by
    Reference</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-29
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#113'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-31
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    <A HREF='#114'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-31
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Prospectus</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="tocpage"></A>
</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="94%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    About this Prospectus
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Information Regarding Forward-Looking Statements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    iii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Portland General Electric Company
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Use of Proceeds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Description of Common Stock
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Description of the First Mortgage Bonds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Where You Can Find More Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Incorporation of Certain Documents by Reference
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Legal Matters
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Experts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='101'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">ABOUT THIS
    PROSPECTUS SUPPLEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This document is in two parts. The first part is this prospectus
    supplement, which describes the specific terms of this offering.
    The second part, the accompanying prospectus, gives more general
    information, some of which may not apply to this offering. This
    prospectus supplement and the accompanying prospectus are part
    of a Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-3,</FONT>
    dated June&#160;1, 2007.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If the description of the offering varies between this
    prospectus supplement and the accompanying prospectus, you
    should rely on the information contained in or incorporated by
    reference into this prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Unless we have indicated otherwise, or the context otherwise
    requires, references in this prospectus supplement and the
    accompanying prospectus to &#147;PGE,&#148; &#147;we,&#148;
    &#147;us,&#148; and &#147;our&#148; or similar terms are to
    Portland General Electric Company.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->
<A name='102'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">PROSPECTUS
    SUPPLEMENT SUMMARY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>The following summary is qualified in its entirety by, and
    should be read together with, the more detailed information,
    including &#147;Risk Factors,&#148; herein, in our annual report
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008, in our Current
    Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K,</FONT>
    which we filed with the SEC on January&#160;16, 2009,
    January&#160;28, 2009, and March&#160;6, 2009 (with respect to
    Item&#160;8.01 and Exhibits&#160;1.1, 5.1, and 23.1
    thereto</I>)<I>, and in our financial statements incorporated by
    reference in this prospectus supplement and the accompanying
    prospectus.</I>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Portland General
    Electric Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Portland General Electric Company is a vertically integrated
    electric utility engaged in the generation, purchase,
    transmission, distribution, and retail sale of electricity in
    the state of Oregon. We operate as a cost-based, regulated
    electric utility. Our revenue requirements are determined based
    upon the forecast cost to serve retail customers, including an
    opportunity to earn a reasonable rate of return. We also
    participate in the wholesale market by purchasing and selling
    electricity and natural gas to utilities and energy marketers in
    order to balance our supply of power to meet the needs of retail
    customers and manage our net variable power costs. We operate as
    a single segment, with revenues and costs related to our
    business activities maintained and analyzed on a total electric
    operations basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    PGE was incorporated in 1930 and is publicly owned, with its
    common stock listed on the New York Stock Exchange under the
    ticker symbol &#147;POR.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Our principal executive offices are located at 121 SW Salmon
    Street, Portland, Oregon 97204. Our telephone number is
    <FONT style="white-space: nowrap">(503)&#160;464-8000.</FONT>
    Our web site is <I>www.portlandgeneral.com</I>. Information
    contained on our web site does not constitute a part of this
    prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The foregoing information about us is only a general summary and
    is not intended to be comprehensive. For additional information
    about PGE, you should refer to the information described under
    the caption &#147;Where You Can Find More Information.&#148;
</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">The
    Offering</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="47%"></TD>
    <TD width="1%"></TD>
    <TD width="52%"></TD>
</TR>

<TR>
    <TD valign="top">
    Issuer</TD>
    <TD></TD>
    <TD valign="bottom">
    Portland General Electric Company</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Securities Offered</TD>
    <TD></TD>
    <TD valign="bottom">
    We are offering $&#160;&#160;&#160;&#160;&#160; aggregate
    principal amount of First Mortgage
    Bonds,&#160;&#160;&#160;&#160;&#160;% Series,
    Due&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2019.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Maturity</TD>
    <TD></TD>
    <TD valign="bottom">
    The Bonds will mature
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2019.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Interest Rate</TD>
    <TD></TD>
    <TD valign="bottom">
    &#160;&#160;&#160;&#160;&#160;% per year.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Interest Payment Dates</TD>
    <TD></TD>
    <TD valign="bottom">
    Interest on the Bonds will be payable semi-annually in arrears
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    of each year, beginning
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2009.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Ranking</TD>
    <TD></TD>
    <TD valign="bottom">
    The Bonds will be senior secured obligations of the Company and
    will be secured equally and ratably with all other first
    mortgage bonds now outstanding or hereafter issued under our
    Mortgage. Subject to limits contained in our Mortgage that are
    described herein, we may from time to time, without the consent
    of existing holders of Bonds, create and issue additional series
    of bonds under the Mortgage (as defined below under
    &#147;Description of the Bonds&#148;).</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Collateral</TD>
    <TD></TD>
    <TD valign="bottom">
    The Bonds will be secured by a first lien on substantially all
    of the Company&#146;s now owned or hereafter acquired tangible
    utility property (except cash, securities, accounts receivable,
    motor vehicles, materials and supplies, fuel, certain minerals
    and mineral rights, property located outside of the states of
    Oregon, Washington, California, Arizona, New&#160;Mexico, Idaho,
    Montana, Wyoming, Utah, Nevada, and Alaska, and certain other
    property), subject, however, to certain permitted encumbrances
    and limited exceptions.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Ratings</TD>
    <TD></TD>
    <TD valign="bottom">
    The Bonds are expected to be rated A by Standard&#160;&#038;
    Poor&#146;s Ratings Services and Baa1 by Moody&#146;s Investors
    Service. A rating represents the rating agency&#146;s opinion of
    an obligor&#146;s overall financial capacity to pay its
    financial obligations (its creditworthiness). A rating is not a
    recommendation to purchase, sell, or hold a financial
    obligation, as it does not comment on market price or
    suitability for a particular investor. Ratings may be changed,
    suspended, or withdrawn as a result of changes in, or
    unavailability of, information about the issuer, or based on
    other circumstances.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Optional Redemption</TD>
    <TD></TD>
    <TD valign="bottom">
    We may redeem the Bonds at any time, in whole or in part, upon
    no less than 30 and no more than 60&#160;days prior written
    notice at a redemption  </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="47%"></TD>
    <TD width="1%"></TD>
    <TD width="52%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    price equal to the greater of (i)&#160;100% of the principal
    amount of such Bonds to be redeemed or (ii)&#160;an amount equal
    to the sum of the present values of the remaining scheduled
    payments of principal and interest due on the Bonds to be
    redeemed (exclusive of interest accrued to the date of
    redemption), discounted to the redemption date on a semi-annual
    basis (assuming a
    <FONT style="white-space: nowrap">360-day</FONT> year
    consisting of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months) at the Adjusted Treasury Rate (as defined below under
    &#147;Description of the Bonds&#151;Optional Redemption&#148;)
    plus&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    basis points, plus in each case accrued interest to the date of
    redemption.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    No Sinking Fund</TD>
    <TD></TD>
    <TD valign="bottom">
    The Bonds will not be subject to a sinking fund.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of Proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    The net proceeds from the sale of the Bonds, after deducting the
    underwriting discount and estimated expenses, will be
    approximately $&#160;&#160;&#160;&#160;&#160; million. The net
    proceeds from the sale of the Bonds will be used for general
    corporate purposes that are permitted under the Oregon Public
    Utility Commission Order relating to this offering. General
    corporate purposes will include funding capital expenditures and
    refinancing approximately $142&#160;million of our Pollution
    Control Bonds due&#160;2033 with interest rates between 5.2% and
    5.45% to May&#160;1, 2009.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Book-Entry</TD>
    <TD></TD>
    <TD valign="bottom">
    The Bonds will be represented by one or more global securities
    registered in the name of and deposited with or on behalf of The
    Depository Trust&#160;Company (&#147;DTC&#148;) or its nominee.
    Beneficial interests in the Bonds will be represented through
    book-entry accounts of financial institutions acting on behalf
    of beneficial owners as direct and indirect participants in DTC.
    Investors may elect to hold interests in the global securities
    through DTC either as a participant in DTC or indirectly through
    organizations that are participants in DTC. This means that you
    will not receive a certificate for your Bonds, and Bonds will
    not be registered in your name except under certain limited
    circumstances described under the caption &#147;Book-Entry
    System&#151;Certificated Bonds.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Trustee</TD>
    <TD></TD>
    <TD valign="bottom">
    HSBC Bank USA, National Association (formerly The Marine Midland
    Trust Company of New York).</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Risk Factors</TD>
    <TD></TD>
    <TD valign="bottom">
    In considering whether to purchase the Bonds, you should
    carefully consider all of the information we have included or
    incorporated by </TD>
</TR>

</TABLE>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-3
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="47%"></TD>
    <TD width="1%"></TD>
    <TD width="52%"></TD>
</TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    reference into this prospectus supplement and the accompanying
    prospectus. In particular, you should consider the section
    entitled &#147;Risk Factors&#148; beginning on
    <FONT style="white-space: nowrap">page&#160;S-5</FONT>
    of this prospectus supplement as well as the risk factors
    described in our periodic reports filed with the SEC, including
    those set forth under the caption &#147;Risk Factors&#148; in
    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008, which are
    incorporated by reference into this prospectus supplement.</TD>
</TR>

</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-4
</DIV><!-- END PAGE WIDTH -->
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    <B><FONT style="font-family: Arial, Helvetica">RISK
    FACTORS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    An investment in any of the Bonds will involve some degree of
    risk. You should be aware of and carefully consider the
    following risk factors and the risk factors included in our
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008, which has been filed
    with the Securities and Exchange Commission (&#147;SEC&#148;)
    and is incorporated by reference in this prospectus supplement.
    You should also read and consider all of the other information
    provided or incorporated by reference in this prospectus
    supplement and the accompanying prospectus before deciding
    whether or not to purchase any of the Bonds. See
    &#147;Forward-Looking Information&#148; in this prospectus
    supplement and &#147;Where You Can Find More Information&#148;
    in this prospectus supplement and the accompanying prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">You may be unable
    to sell your Bonds if a trading market for the Bonds does not
    develop.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Bonds will be new securities for which there is currently no
    established trading market, and none may develop. We do not
    intend to apply to list the Bonds on any securities exchange or
    for quotation on any automated dealer quotation system. The
    liquidity of any market for the Bonds will depend on the number
    of holders of the Bonds, the outstanding amount of the Bonds,
    the interest of securities dealers in making a market in the
    Bonds, and other factors. Accordingly, we cannot assure you that
    a market for the Bonds will ever develop or be maintained or be
    liquid. The underwriters may make a market in the Bonds after
    completion of the offering, but will not be obligated to do so
    and may discontinue any market-making activities at any time
    without notice. If an active trading market does not develop,
    the market price and liquidity of the Bonds may be adversely
    affected. If the Bonds are traded, they may trade at a discount
    from their initial offering price depending upon prevailing
    interest rates, the market for similar securities, general
    economic conditions, our performance and business prospects,
    then-current ratings assigned to the Bonds, and the market for
    similar securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">The rating of the
    Bonds could change after issuance which could affect the market
    price and marketability of the Bonds.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We had total debt of $1.437&#160;billion as of March&#160;31,
    2009. We have estimated capital expenditure requirements of
    approximately $722&#160;million in 2009 and $526&#160;million in
    2010. To finance these expenditures in part and to provide for
    debt maturities, we anticipate issuing $442&#160;million of debt
    in 2009, of which $130&#160;million was issued in January 2009.
    The $442&#160;million amount includes $142&#160;million that
    will be used to purchase outstanding Pollution Control Bonds for
    which the interest rate and interest period expire May&#160;1,
    2009. In 2010, we anticipate issuing $375&#160;million of debt
    and have $186&#160;million of debt maturities. Additional debt
    issued as first mortgage bonds will share equally and ratably
    with the lien on the Bonds offered hereby, and any other senior
    debt issued by us will be <I>pari passu </I>with the Bonds
    offered hereby with respect to our unsecured property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Additionally, the posting of collateral, in the form of cash or
    letters of credit, that we are required to post to
    counterparties pursuant to existing purchased power and natural
    gas agreements to the extent wholesale power or natural gas
    prices decline, reduce our liquidity and may require us to incur
    additional debt. As of March&#160;31, 2009, our liquidity, which
    consists of availability under our revolving credit facilities
    and cash and cash equivalents, totaled $307&#160;million and our
    total collateral deposits had increased by $101&#160;million
    since December&#160;31, 2008 to $409&#160;million.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Based on our future funding requirements, in January 2009,
    Standard and Poor&#146;s revised its outlook on us from stable
    to negative, and our credit ratings may in the future be lower
    than our current or historical credit ratings. Differences in
    credit ratings would affect the
</DIV>

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    <BR>
    S-5
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    interest rates charged on financings, as well as the amounts of
    indebtedness, types of financing structures and debt markets
    that may be available to us.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We currently expect that, upon issuance, the Bonds will be rated
    A and Baa1 by S&#038;P and Moody&#146;s, respectively. Such
    ratings are limited in scope and do not address all material
    risks relating to an investment in the Bonds, but rather reflect
    only the view of each rating agency at the time the rating is
    issued. An explanation of the significance of such rating may be
    obtained from such rating agency. There is no assurance that
    such credit ratings will be issued or remain in effect for any
    given period of time or that such ratings will not be decreased,
    suspended or withdrawn entirely by the rating agencies, if, in
    each rating agency&#146;s judgment, circumstances so warrant.
    Holders of Bonds will have no recourse against us in the event
    of a change in or suspension or withdrawal of such ratings. Any
    decrease, suspension or withdrawal of such ratings may have an
    adverse effect on the market price or marketability of the Bonds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">You might not be
    able to fully realize the value of the liens securing the
    Bonds.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">The value of the
    collateral might not be sufficient to satisfy all the
    obligations secured by the collateral.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Our obligations under the Bonds are secured by a lien on
    substantially all of our tangible utility property (except cash,
    securities, accounts receivable, motor vehicles, materials and
    supplies, fuel, certain minerals and mineral rights, property
    located outside of the states of Oregon, Washington, California,
    Arizona, New Mexico, Idaho, Montana, Wyoming, Utah, Nevada, and
    Alaska, and certain other property) subject to certain permitted
    encumbrances and limited exceptions. This lien is also for the
    benefit of all holders of other series of our first mortgage
    bonds. The value of the collateral security in the event of a
    liquidation will depend upon market and economic conditions, the
    availability of buyers, and other factors. We have not prepared
    or commissioned any independent appraisals of any of the
    property securing the Bonds in connection with this offering.
    Moreover, the discovery of existing conditions or future
    developments at or relating to our tangible utility property,
    including with respect to environmental or hazardous material
    matters, may reduce the value of the properties securing the
    Bonds. We cannot assure you that the proceeds of any sale of
    such assets following an acceleration of maturity of the Bonds
    would be sufficient to satisfy amounts due on the first mortgage
    bonds and the other debt secured by such assets. See
    &#147;Description of the Bonds&#151;Issuance of Additional
    Bonds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    To the extent the proceeds of any sale of the collateral
    security were not sufficient to repay all amounts due on your
    Bonds, you would have only an unsecured claim against our
    remaining assets. By their nature, some or all such assets might
    be illiquid and might have no readily ascertainable market
    value. Likewise, we cannot assure you that such assets would be
    saleable or that there would not be substantial delays in their
    liquidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, the Mortgage permits us (within limits described
    below under &#147;Description of the Bonds&#148;) to issue
    additional first mortgage bonds secured equally and ratably by
    the same assets used to secure your Bonds. This could reduce
    amounts payable to you from the proceeds of any sale of the
    collateral security.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">Bankruptcy laws
    could limit your ability to realize value from the
    collateral.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The right of the Trustee to repossess and dispose of the
    collateral security upon the occurrence of an event of default
    under the Mortgage is likely to be significantly impaired by
    applicable bankruptcy law if a bankruptcy case were to be
    commenced by or against us before the Trustee repossessed and
    disposed of the collateral security. Under Title&#160;11 of the
    United States Code (the &#147;Bankruptcy Code&#148;), a secured
    creditor is prohibited from repossessing its security from a
    debtor in a bankruptcy case, or from disposing of security
    repossessed from
</DIV>

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    <BR>
    S-6
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    such debtor, without bankruptcy court approval. Moreover, the
    Bankruptcy Code permits the debtor to continue to retain and to
    use collateral, including capital stock, even though the debtor
    is in default under the applicable debt instruments, provided
    that the secured creditor is given &#147;adequate
    protection.&#148; In view of the lack of a precise definition of
    the term &#147;adequate protection&#148; and the broad
    discretionary powers of a bankruptcy court, it is impossible to
    predict (i)&#160;how long payments under the Bonds could be
    delayed following commencement of a bankruptcy case,
    (ii)&#160;whether or when the collateral agent could repossess
    or dispose of the secured assets, or (iii)&#160;whether or to
    what extent holders of the Bonds would be compensated for any
    delay in payment or loss of value of the secured assets through
    the requirement of &#147;adequate protection.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 4%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <I><FONT style="font-family: Arial, Helvetica">The ability of
    the Trustee to effectively liquidate the collateral and the
    value received could be impaired or impeded by the need to
    obtain regulatory consents.</FONT></I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    While we have all necessary consents to grant the security
    interests created by the Mortgage, any foreclosure thereon could
    require additional approvals that have not been obtained from
    state or federal regulators. We cannot assure you that these
    approvals could be obtained by the Trustee on a timely basis or
    at all. In the event of a liquidation, the Trustee may require
    approval from the Federal Energy Regulatory Commission prior to
    disposing of, and monetizing, certain security collateral
    subject to federal jurisdiction. The Trustee may also require
    state utility commission prior approval(s) if the Trustee seeks
    to sell, lease, assign, or transfer control or otherwise dispose
    of, and monetize, certain security collateral subject to state
    jurisdiction. A failure to gain the required approvals may
    preclude such dispositions, and any such dispositions done
    without approval may be considered void.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">We may choose to
    redeem the Bonds prior to maturity.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We may redeem the Bonds at any time in whole, or from time to
    time in part, at the redemption price specified in this
    prospectus supplement. If prevailing interest rates are lower at
    the time of redemption, holders of the Bonds may not be able to
    reinvest the redemption proceeds in a comparable security at an
    interest rate as high as the interest rate of the Bonds being
    redeemed. Our redemption right may also adversely affect
    holders&#146; ability to sell their Bonds.
</DIV>
<A name='104'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: Arial, Helvetica">CAUTIONARY
    STATEMENT REGARDING FORWARD-LOOKING INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The information in this prospectus supplement, the accompanying
    prospectus, and the other public filings incorporated by
    reference includes statements that are forward-looking within
    the meaning of the Private Securities Litigation Reform Act of
    1995. Such forward-looking statements relate to expectations,
    beliefs, plans, objectives, estimates and assumptions for future
    operations, cash flows from operations, business prospects, the
    outcome of litigation and regulatory proceedings, growth in
    demand for energy, future capital expenditures, market
    conditions, long-term earnings growth, the cost, completion and
    benefits of capital projects, future events, liquidity, or
    performance, and other matters. Words or phrases such as
    &#147;anticipates,&#148; &#147;believes,&#148;
    &#147;should,&#148; &#147;estimates,&#148; &#147;expects,&#148;
    &#147;intends,&#148; &#147;plans,&#148; &#147;predicts,&#148;
    &#147;projects,&#148; &#147;will likely result,&#148; &#147;will
    continue,&#148; or similar expressions are intended to identify
    such forward-looking statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Forward-looking statements are not guarantees of future
    performance and involve risks and uncertainties that could cause
    actual results or outcomes to differ materially from those
    expressed. Our expectations, beliefs, estimates, and projections
    are expressed in good faith and we believe that they have a
    reasonable basis including, without limitation,
    management&#146;s examination of historical operating trends,
    data contained in records, and other data available
</DIV>

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    <BR>
    S-7
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    from third parties, but we cannot assure you that our
    expectations, beliefs, estimates, or projections will be
    achieved or accomplished.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition to any assumptions and other factors and matters
    referred to specifically in connection with such forward-looking
    statements, factors that could cause actual results or outcomes
    to differ materially from those discussed in forward-looking
    statements include the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    governmental policies and regulatory audits, investigations, and
    actions, including those of the Federal Energy Regulatory
    Commission, or FERC, and the Oregon Public Utility Commission
    with respect to allowed rates of return, financings, electricity
    pricing and price structures, acquisition and disposal of assets
    and facilities, operation and construction of plant facilities,
    transmission of electricity, recovery of power costs and capital
    investments, and current or prospective wholesale and retail
    competition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the outcome of legal and regulatory proceedings and issues,
    including, without limitation, the proceedings related to the
    Trojan Investment Recovery, the Pacific Northwest Refund
    proceeding, the Portland Harbor investigation, and other matters
    described in Note&#160;18, Contingencies, in the Notes to
    Consolidated Financial Statements in Item&#160;8 of our Annual
    Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for fiscal year ended December&#160;31, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the continuing effects of the ongoing deterioration of the
    economies of the state of Oregon, the United States and other
    parts of the world, including reductions in demand for
    electricity, impaired financial soundness of vendors and service
    providers and elevated levels of uncollectible customer accounts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    capital market conditions, including the recent credit crisis,
    interest rate volatility, severe reductions in demand for
    investment-grade commercial paper and the availability and cost
    of capital, as well as changes in our credit ratings, which
    could have an impact on our cost of capital and our ability to
    access the capital markets to support requirements for working
    capital, construction costs, and the repayments of maturing debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unseasonable or extreme weather and other natural phenomena,
    which, in addition to affecting our customers&#146; demand for
    power, could have a serious impact on our ability and cost to
    procure adequate supplies of fuel or power to serve our
    customers, and could increase our costs to maintain our
    generating facilities and transmission and distribution system;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    operational factors affecting our power generation facilities,
    including forced outages, hydro conditions, wind conditions, and
    disruption of fuel supply;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    wholesale energy prices and their impact on the availability and
    price of wholesale power in the western United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    residential, commercial, and industrial growth and demographic
    patterns in our service territory;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    future laws, regulations, and proceedings that could increase
    our costs or affect the operations of our thermal generating
    plants by imposing requirements for additional pollution control
    equipment or significant emissions fees or taxes, particularly
    with respect to coal-fired generation facilities, in order to
    mitigate carbon dioxide, mercury, and other emissions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effectiveness of our risk management policies and procedures
    and the creditworthiness of our customers and counterparties;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the failure to complete capital projects on schedule and within
    budget;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effects of Oregon law related to utility rate treatment of
    income taxes, which may result in earnings volatility and
    adversely affect our results of operation;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the outcome of efforts to relicense our hydroelectric projects,
    as required by the FERC;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    changes in, and compliance with, environmental and endangered
    species laws and policies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effects of climate change, including changes in the
    environment that may affect energy costs or consumption,
    increase our costs, or adversely affect our operations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    new federal, state, and local laws that could have adverse
    effects on operating results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    employee workforce factors, including aging, potential strikes,
    work stoppages, and transitions in senior management, including
    the recent retirement of our Chief Executive Officer and hiring
    of our new Chief Financial Officer;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    general political, economic, and financial market conditions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    natural disasters and other natural risks, such as earthquake,
    flood, drought, lightning, wind, and fire;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    acts of war or terrorism;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    financial or regulatory accounting principles or policies
    imposed by governing bodies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    declines in the market prices for equity securities and
    increased funding requirements for defined benefit pension plans
    and other benefit plans;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    declines in wholesale power and natural gas prices, which would
    require us to issue additional letters of credit or post
    additional cash as collateral to counterparties pursuant to
    existing purchased power and natural gas agreements.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Any forward-looking statement speaks only as of the date on
    which such statement is made, and, except as required by law, we
    undertake no obligation to update any forward-looking statement
    to reflect events or circumstances after the date on which such
    statement is made or to reflect the occurrence of unanticipated
    events. New factors emerge from time to time and it is not
    possible for management to predict all such factors, nor can it
    assess the impact of any such factor on the business or the
    extent to which any factor, or combination of factors, may cause
    results to differ materially from those contained in any
    forward-looking statement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='105'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">RATIOS OF
    EARNINGS TO FIXED CHARGES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The ratios of earnings to fixed charges are calculated as
    follows:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 8pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="56%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=06 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=06 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=06 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=06 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Years Ended December&#160;31,</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2008</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2007</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2006</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2005</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>2004</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="18" align="center" valign="bottom">
    (Dollars in thousands)
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 16pt">
    Income from continuing operations before income taxes
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    121,825
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    220,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    107,240
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    105,759
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    146,325
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 16pt">
    Total fixed charges
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    111,589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    91,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85,330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    84,803
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 32pt">
    <B>Total earnings</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    233,414
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    318,805
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    199,086
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    191,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    231,128
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 16pt">
    Fixed charges:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 24pt">
    Interest expense
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    90,257
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    74,362
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68,932
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68,359
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    68,661
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 24pt">
    Capitalized interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6,184
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,596
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,482
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,717
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,880
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 24pt">
    Interest on long-term power contracts (PUDs)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10,010
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,552
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9,927
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,634
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,549
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 24pt">
    Estimated interest factor in rental expense&#160;(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5,172
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,505
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,620
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4,713
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 32pt">
    <B>Total fixed charges</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    111,589
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    98,682
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    91,846
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    85,330
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    84,803
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -16pt; margin-left: 16pt">
    <B>Ratio of earnings to fixed charges</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3.23
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.17
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.24
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2.73
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=48 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <FONT style="font-size: 8pt">(1)
    </FONT></TD>
    <TD></TD>
    <TD valign="bottom">
    <FONT style="font-size: 8pt">Interest factor in rental expense
    is estimated to equal 1/3 of such expense, which we consider a
    reasonable approximation of the interest factor.
    </FONT></TD>
</TR>

</TABLE>
<A name='106'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">USE OF
    PROCEEDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The net proceeds from the sale of the Bonds, after deducting the
    underwriting discount and estimated expenses, will be
    approximately $&#160;&#160;&#160;&#160;&#160;&#160;million. The
    net proceeds from the sale of the Bonds will be used for general
    corporate purposes that are permitted under the Oregon Public
    Utility Commission Order relating to the offering. General
    corporate purposes will  include funding capital expenditures
    and refinancing approximately $142&#160;million of our Pollution
    Control Bonds due 2033 with interest rates between 5.2% and
    5.45% to May&#160;1, 2009.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-10
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='107'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">DESCRIPTION OF
    THE BONDS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We will issue the Bonds under our Indenture of Mortgage and Deed
    of Trust dated July&#160;1, 1945 (the &#147;Original
    Mortgage&#148;), between us and HSBC Bank USA, National
    Association (formerly The Marine Midland Trust&#160;Company of
    New York), as trustee (the &#147;Trustee&#148;), as supplemented
    and amended, including by a Sixty-second Supplemental Indenture
    with respect to the Bonds. The Original Mortgage, as so
    supplemented and amended, is referred to as the
    &#147;Mortgage.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following summary of certain provisions of the Mortgage is
    not complete and may not contain all the information that is
    important to you. This summary is subject to, and is qualified
    in its entirety by reference to the Mortgage, including the
    defined terms contained therein. For additional information, you
    should refer to the Original Mortgage filed as an exhibit to our
    Amendment No.&#160;1 to Registration Statement on Form&#160;8,
    dated June&#160;14, 1965, as amended by supplemental indentures
    filed as exhibits to our Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;S-3,</FONT>
    dated June&#160;1, 2007. The Sixty-second Supplemental Indenture
    will set forth the terms of the Bonds and will be filed as an
    exhibit to a Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K.</FONT>
    The Mortgage has been qualified under the Trust&#160;Indenture
    Act of 1939, and you should also refer to the
    Trust&#160;Indenture Act of 1939 for provisions that apply to
    the Bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This summary replaces in its entirety the information included
    under the caption &#147;Description of the First Mortgage
    Bonds&#148; in the accompanying prospectus.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Bonds will be issued in an aggregate principal amount of
    $&#160;&#160;&#160;&#160;&#160; and we will not require payment
    of a service charge for any transfers or exchanges of the Bonds.
    We may, however, require payment to cover any tax or other
    governmental charge payable in connection with any transfer or
    exchange. We will have the right to issue additional first
    mortgage bonds under the Mortgage at any time, subject to the
    conditions described below under the caption &#147;Issuance of
    Additional Bonds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We will issue the Bonds only in fully registered form without
    coupons. The Bonds will be issuable in denominations of $1,000
    and multiples of $1,000 in excess thereof. The Bonds will be
    represented by permanent global securities registered in the
    name of DTC or its nominee. Under circumstances set forth in the
    Mortgage, we will issue individual certificates issued in
    definitive form, as described under &#147;Book-Entry
    System&#151;Certificated Bonds.&#148; We will pay principal and
    interest on the global securities in immediately available funds
    to the registered holder, which will be DTC or its nominee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Interest</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Bonds will mature
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2019. Interest on the Bonds will accrue at the rate
    of&#160;&#160;&#160;&#160;&#160;% per annum
    from&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2009 or from the most recent interest payment date to which
    interest has been paid or provided for. We will make each
    interest payment on the Bonds semi-annually in arrears
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
    and&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;of
    each year, beginning
    on&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;,
    2009. The record date for interest payable on any interest
    payment date shall be the fifteenth day, whether or not a
    business day, immediately preceding such interest payment date;
    <I>provided</I>, <I>however</I>, that interest payable at
    maturity (or, if applicable, upon redemption) will be payable to
    the person to whom the principal of the Bond shall be paid.
    Interest on the Bonds will be computed on the basis of a
    <FONT style="white-space: nowrap">360-day</FONT> year
    consisting of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months. If any interest payment date or the maturity date falls
    on a day that is not a business day, the payment due on that
    interest payment date or the maturity date will be made on the
    next business day, without any interest or other payment in
    respect of such delay.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-11
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The principal payable at maturity (or, if applicable, upon
    redemption), and interest payable on each interest payment date
    and at maturity (or, if applicable, upon redemption), on each
    Bond will be paid in immediately available funds to the
    registered owner thereof at our office or agency currently
    located at HSBC Bank USA, National Association, 452&#160;Fifth
    Avenue, New York, NY 10018 in the Borough of Manhattan, City of
    New York, with payment at maturity (or, if applicable, upon
    redemption) made against presentation of such Bond at such
    office or agency for cancellation. We may change the place of
    payment on the Bonds, appoint one or more additional paying
    agents (including us) and remove any paying agent, all at our
    discretion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    For information relating to payments on book-entry Bonds, please
    see the information provided under the caption &#147;Book-Entry
    System&#151;Book-Entry Format&#148; below.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Optional
    Redemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We may redeem the Bonds at any time, in whole or in part, upon
    no less than thirty and no more than sixty days prior written
    notice, at a redemption price equal to the greater of
    (a)&#160;100% of the principal amount of such Bonds to be
    redeemed or (b)&#160;an amount equal to the sum of the present
    values of the remaining scheduled payments of principal and
    interest due on the Bonds to be redeemed (exclusive of interest
    accrued to the date of redemption), discounted to the redemption
    date on a semi-annual basis (assuming a
    <FONT style="white-space: nowrap">360-day</FONT> year
    consisting of twelve
    <FONT style="white-space: nowrap">30-day</FONT>
    months) at the Adjusted Treasury Rate
    plus&#160;&#160;&#160;&#160;&#160;basis points, plus in each
    case accrued interest to the date of redemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    &#147;<I>Adjusted Treasury Rate</I>&#148; means, with respect to
    any redemption date, the rate per annum equal to the semi-annual
    equivalent yield to maturity of the Comparable Treasury Issue,
    calculated using a price for the Comparable Treasury Issue
    (expressed as a percentage of its principal amount) equal to the
    Comparable Treasury Price for such redemption date. The Adjusted
    Treasury Rate will be calculated on the third business day
    preceding the redemption date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    &#147;<I>Comparable Treasury Issue</I>&#148; means the United
    States Treasury security selected by an Independent Investment
    Banker as having a maturity comparable to the remaining term of
    the Bonds to be redeemed that would be used, at the time of
    selection and in accordance with customary financial practice,
    in pricing new issues of corporate debt securities of comparable
    maturity to the remaining term of the Bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    &#147;<I>Comparable Treasury Price</I>&#148; means (i)&#160;the
    average of four Reference Treasury Dealer Quotations for the
    redemption date, after excluding the highest and lowest
    Reference Treasury Dealer Quotations, or (ii)&#160;if the
    Independent Investment Banker obtains fewer than four such
    Reference Treasury Dealer Quotations, the average of all such
    quotations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    &#147;<I>Independent Investment Banker</I>&#148; means one of
    the Reference Treasury Dealers selected by us from among the
    Reference Treasury Dealers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    &#147;<I>Reference Treasury Dealer</I>&#148; means each of
    Deutsche Bank Securities Inc. and Wachovia Capital Markets, LLC,
    plus two other financial institutions appointed by them at the
    time of any redemption, or their affiliates which are primary
    U.S.&#160;Government securities dealers, and their respective
    successors; <I>provided, however</I>, that if any of the
    foregoing shall cease to be a primary U.S.&#160;Government
    securities dealer (a &#147;Primary Treasury Dealer&#148;), the
    Independent Investment Banker shall substitute therefor another
    Primary Treasury Dealer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    &#147;<I>Reference Treasury Dealer Quotation</I>&#148; means,
    with respect to each Reference Treasury Dealer, the average, as
    determined by the Independent Investment Banker, of the bid and
    asked prices for the Comparable Treasury Issue (expressed in
    each case as a percentage of its principal amount) quoted in
    writing to the Independent Investment Banker by the Reference
    Treasury Dealers at 3:30&#160;p.m., New York City time, on the
    third business day preceding the redemption date.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-12
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Any notice to holders of the Bonds of a redemption shall state,
    among other things, the redemption date, the principal amount of
    the Bonds to be redeemed, and the method of calculating the
    redemption price. Unless the Bonds are held in book-entry only
    form through the facilities of DTC, in which case DTC&#146;s
    procedures for selection shall apply, if less than all of the
    Bonds are redeemed, the principal amount of the Bonds to be
    redeemed shall be allocated <I>pro rata </I>among all holders of
    such Bonds at the time outstanding. In the event that any
    redemption date is not a business day, we will pay the
    redemption price on the next business day, without any interest
    or other payment in respect of such delay.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Unless we default in the payment of the redemption price, which
    includes accrued interest, if any, Bonds will cease to bear
    interest on the redemption date. We will pay the redemption
    price upon surrender of any Bonds for redemption.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Secured
    Obligations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Bonds, when issued, will be our senior secured obligations
    and will be secured equally and ratably with all of our other
    first mortgage bonds now outstanding or hereafter issued under
    the Mortgage, by a first lien on substantially all of our now
    owned or hereafter acquired tangible utility property (except
    cash, securities, accounts receivable, motor vehicles, materials
    and supplies, fuel, certain minerals and mineral rights,
    property located outside of the states of Oregon, Washington,
    California, Arizona, New Mexico, Idaho, Montana, Wyoming, Utah,
    Nevada, and Alaska, and certain other property specified in the
    Mortgage), subject, however, to certain permitted encumbrances
    and various exceptions, reservations, limitations, and minor
    irregularities and deficiencies in title which will not
    interfere with the proper operation and development of the
    mortgaged property. We refer to this collateral security as
    &#147;bondable public utility property.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The term &#147;permitted encumbrances&#148; means as of any
    particular time any of the following:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    liens for taxes, assessments, or governmental charges for the
    then current year and taxes, assessments, or governmental
    charges not then delinquent; and liens for taxes, assessments,
    or governmental charges already delinquent, but whose validity
    is being contested at the time by us in good faith by
    appropriate proceedings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    liens and charges incidental to construction or current
    operation which have not at such time been filed or asserted or
    the payment of which has been adequately secured or which, in
    the opinion of counsel, are insignificant in amount;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    liens, securing obligations neither assumed by us nor on account
    of which we customarily pay interest directly or indirectly,
    existing, either at July&#160;1, 1945, or as to property
    thereafter acquired, at the time of acquisition by us, upon real
    estate or rights in or relating to real estate acquired by us
    for substation, measuring station, regulating station, or
    transmission, distribution, or other right-of-way purposes;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any right which any municipal or governmental body or agency may
    have by virtue of any franchise, license, contract, or statute
    to purchase, or designate a purchaser of, or order the sale of,
    any of our property upon payment of reasonable compensation
    therefor or to terminate any franchise, license, or other rights
    or to regulate our property and business;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the lien of judgments covered by insurance or if not so covered,
    not exceeding at any one time $100,000 in aggregate amount;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    easements or reservations in respect of any of our property for
    the purpose of rights-of-way and similar purposes, reservations,
    restrictions, covenants, party wall agreements, conditions of
    record, and other encumbrances (other than to secure the payment
    of money) and minor irregularities or deficiencies in the record
    evidence of title, which in
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    the opinion of counsel (at the time of the acquisition of the
    property affected or subsequently) will not interfere with the
    proper operation and development of the property affected
    thereby;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any lien or encumbrance, moneys sufficient for the discharge of
    which have been deposited in trust with the Trustee or with the
    trustee or mortgagee under the instrument evidencing such lien
    or encumbrance, with irrevocable authority to the Trustee or to
    such other trustee or mortgagee to apply such moneys to the
    discharge of such lien or encumbrance to the extent required for
    such purposes;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the lien reserved for rent and for compliance with the terms of
    the lease in the case of leasehold estates.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Mortgage permits the acquisition of property subject to
    prior liens. However, no property subject to prior liens (other
    than purchase money liens) may be acquired (i)&#160;if at the
    date the property is acquired, the principal amount of
    indebtedness secured by prior liens, together with all of our
    other prior lien indebtedness, is greater than 10% of the
    aggregate principal amount of debt securities outstanding under
    the Mortgage, (ii)&#160;if at the date the property is acquired,
    the principal amount of indebtedness secured by prior liens is
    greater than 60% of the cost of such property to us, or
    (iii)&#160;in certain cases if the property had been used by
    another entity in a business similar to ours, unless the net
    earnings of such property meet certain tests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We have covenanted, among other things,
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    to not issue debt securities under the Mortgage in any manner
    other than in accordance with the Mortgage;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    except as permitted by the Mortgage, to keep the Mortgage a
    first priority lien on the property subject to it;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    except as permitted by the Mortgage, to not suffer any act or
    thing whereby all of the properties subject to it might or could
    be impaired;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the event that we are no longer required to file reports with
    the SEC, and so long as the Bonds are outstanding, to furnish to
    the Trustee the financial and other information that would be
    required to be contained in the reports filed with the SEC on
    <FONT style="white-space: nowrap">Forms&#160;10-Q,</FONT>
    <FONT style="white-space: nowrap">10-K,</FONT> and
    <FONT style="white-space: nowrap">8-K</FONT> if we
    were required to file such reports.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">No Sinking
    Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Bonds will not be subject to a sinking fund.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Replacement
    Fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If the amount of the minimum provision for depreciation upon
    bondable public utility property (as defined above) exceeds the
    balance of property additions credits available in any year, we
    will pay the excess to the Trustee on May 1 of the following
    year by either payments in cash or by delivery of first mortgage
    bonds. The balance of property additions available for credit is
    the net of the aggregate property additions acquired or
    constructed by us from March&#160;31, 1945, to the end of the
    calendar year for which the payment is due, less property
    additions that (i)&#160;have been previously made the basis for
    action or credit under the Mortgage or (ii)&#160;have been used
    as a credit on all previous replacement fund certificates. We
    may, at our election, credit against any deficiency in the
    replacement fund amount (i)&#160;available retirements of first
    mortgage bonds, (ii)&#160;certain expenditures on bondable
    public utility property subject to prior lien, and
    (iii)&#160;certain retirements of prior lien indebtedness. If
    those credits at any time exceed the replacement fund
    requirement, we may withdraw cash or first mortgage bonds held
    by the Trustee in the replacement fund. We may also reinstate
    available retirements of
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-14
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    first mortgage bonds that we previously took as a credit against
    any replacement fund requirement. Cash deposited in the
    replacement fund may, at our option, be applied to the
    redemption or purchase of Bonds or, in certain circumstances, to
    the redemption or purchase of other first mortgage bonds. The
    redemptions of the Bonds would be at the then applicable regular
    redemption prices.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Minimum Provision
    for Depreciation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the Mortgage, there is a &#147;minimum provision for
    depreciation&#148; of bondable public utility property. The
    aggregate amount of the minimum provision for depreciation of
    bondable public utility property for any period after
    March&#160;31, 1945, is $35,023,487.50 plus an amount for each
    calendar year or fraction of a year after December&#160;31,
    1966, equal to the greater of (i)&#160;2% of depreciable
    bondable public utility property, as shown by our books as of
    January 1 of that year, as to which we were required to make
    appropriations to a reserve for depreciation or obsolescence or
    (ii)&#160;the amount we actually appropriated in respect of the
    depreciable bondable public utility property to a reserve for
    depreciation or obsolescence, in either case less an amount
    equal to the aggregate of (a)&#160;the amount of any property
    additions which we made as the basis for a sinking fund credit
    during the calendar year, and
    (b)&#160;166<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the principal amount of any first mortgage bonds of any
    series which we credited against any sinking fund payment or
    which we redeemed in anticipation of, or out of moneys paid to
    the Trustee on account of, any sinking fund payment due during
    the calendar year. The property additions and first mortgage
    bonds referred to in (a)&#160;and (b)&#160;above become
    disqualified from being made the basis of the authentication and
    delivery of first mortgage bonds or any other further action or
    credit under the Mortgage. In addition, the minimum provision
    for depreciation shall also include (1)&#160;the amount of any
    property additions referred to in (a)&#160;above which after
    December&#160;31, 1966, were made the basis for a sinking fund
    credit pursuant to the provisions of a sinking fund for first
    mortgage bonds of any series, and thereafter became
    &#147;available additions&#148; as a result of the fact that all
    first mortgage bonds of such series ceased to be outstanding,
    and
    (2)&#160;166<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the principal amount of first mortgage bonds referred to in
    (b)&#160;above, which after December&#160;31, 1966, were
    credited against any sinking fund payment, or were redeemed in
    anticipation of, or out of moneys paid to the Trustee on account
    of, any sinking fund payment for first mortgage bonds of any
    series, and thereafter became available retirements of first
    mortgage bonds as a result of the fact that all first mortgage
    bonds of such series ceased to be outstanding.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Issuance of
    Additional Bonds</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Subject to the issuance restrictions described below, we may
    issue an unlimited amount of first mortgage bonds under the
    Mortgage. First mortgage bonds may be issued from time to time
    on the basis of, and in an aggregate principal amount not
    exceeding, the following: (i)&#160;60% of the amount of
    available additions; (ii)&#160;an amount of cash deposited with
    the Trustee;
    <FONT style="white-space: nowrap">and/or</FONT>
    (iii)&#160;the aggregate principal amount of available
    retirements of first mortgage bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    With certain exceptions in the case of (iii)&#160;above, the
    issuance of first mortgage bonds is subject to the amount of net
    earnings available for interest for 12 consecutive months within
    the preceding 15&#160;months being at least twice the annual
    interest requirements on all first mortgage bonds to be
    outstanding and all prior lien indebtedness. Cash deposited with
    the Trustee pursuant to (ii)&#160;above may be
    (a)&#160;withdrawn in an amount equal to 60% of available
    additions, (b)&#160;withdrawn in an amount equal to the
    aggregate principal amount of available retirements of first
    mortgage bonds, or (c)&#160;applied to the purchase or
    redemption of first mortgage bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At February&#160;28, 2009, we had approximately
    $998&#160;million of available additions and no available
    retirements of first mortgage bonds, which would be sufficient
    to permit the issuance of approximately $599&#160;million in
    principal amount of additional first mortgage bonds and net
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-15
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    earnings available for interest would permit the issuance of up
    to approximately $662&#160;million in principal amount of
    additional first mortgage bonds (including the Bonds being
    offered hereby).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Available additions are determined, at any time, by deducting
    from the aggregate amount of property additions since
    March&#160;31, 1945, (i)&#160;the greater of the aggregate
    amount of retirements of bondable public utility property not
    subject to a prior lien, or the aggregate amount of the minimum
    provision for depreciation upon bondable public utility property
    not subject to a prior lien since March&#160;31, 1945, and
    (ii)&#160;the aggregate amount of available additions
    theretofore made the basis for action or credit under the
    Mortgage. Property additions taken as a credit against the
    replacement fund requirement are not deemed to be &#147;made the
    basis for action or credit.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Dividend
    Restrictions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    So long as any of the Bonds, or any of the first mortgage bonds
    authenticated under the Mortgage are outstanding, we will be
    subject to the following restrictions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we may not pay or declare dividends (other than stock dividends)
    or other distributions on our common stock,&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we may not purchase any shares of our capital stock (other than
    in exchange for or from the proceeds of other shares of our
    capital stock),
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    in either case if the aggregate amount distributed or expended
    after December&#160;31, 1944, would exceed the aggregate amount
    of our net income, as adjusted, available for dividends on our
    common stock accumulated after December&#160;31, 1944.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    At December&#160;31, 2008, in excess of $1&#160;billion of
    accumulated net income was available for payment of dividends
    under this provision.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Release and
    Substitution of Property</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Property subject to the lien of the Mortgage may (subject to
    certain exceptions and limitations) be released only upon the
    substitution of cash, purchase money obligations, or certain
    other property or upon the basis of available additions or
    available retirements of bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Subject to the terms and conditions contained in the Mortgage,
    we:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    may, at any time, without the consent of the Trustee, sell,
    exchange, or otherwise dispose of, free from the lien of the
    Mortgage, any property subject to the lien of the Mortgage,
    which has become worn out, unserviceable, undesirable, or
    unnecessary for use in the conduct of our business; upon
    replacing or modifying such property, such replacement or
    modified property shall without further action become subject to
    the lien of the Mortgage;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    may, at any time, sell, exchange, or dispose of any property
    (except cash, securities, or other personal property pledged or
    deposited with or required to be pledged or deposited with the
    Trustee), and the Trustee shall release such property from the
    operation and lien of the Mortgage upon receipt by the Trustee
    of certain documents and, subject to certain exceptions, cash in
    an amount equal to the fair value of such property;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shall, in the event any property is taken by the exercise of the
    power of eminent domain or otherwise purchased or ordered to be
    sold by any governmental body, deposit with the Trustee the
    award for or proceeds of any property so taken, purchased or
    sold, and such property shall be released from the lien of the
    Mortgage;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    may, at any time, without the consent of the Trustee, sell,
    exchange, or otherwise dispose of any property (except cash,
    securities, or other personal property pledged or deposited with
    or required to be pledged or deposited with the Trustee) subject
    to the lien of the Mortgage which is no longer used or useful in
    the conduct of our business, provided the fair values of the
    property so sold, exchanged, or otherwise disposed of in any one
    calendar year shall not exceed $50,000 and cash in an amount
    equal to the fair value of the property is deposited with the
    Trustee;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    may, in lieu of depositing cash with the Trustee as required
    above, deliver to the Trustee purchase money obligations secured
    by a mortgage on the property to be released or disposed of, a
    certificate of the trustee or other holder of a prior lien on
    any part of the property to be released stating that a specified
    amount of cash or purchase money obligations have been deposited
    with such trustee or other holder, or certain other certificates
    from us.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Subject to certain conditions specified in the Mortgage, moneys
    deposited with the Trustee may be:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    withdrawn by us to the extent of available additions and
    available first mortgage bond retirements;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    withdrawn by us in amount equal to the lower of cost or fair
    value of property additions acquired or constructed by
    us;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    used to purchase or redeem first mortgage bonds of any series.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Notwithstanding the foregoing, proceeds of a sale or disposition
    of substantially all of our electric properties at Portland,
    Oregon, may be applied only to the retirement of first mortgage
    bonds outstanding under the Mortgage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Modification of
    the Mortgage</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the Mortgage, our rights and obligations and the rights of
    the holders of the Bonds may be modified with the consent of the
    holders of 75% in aggregate principal amount of the outstanding
    first mortgage bonds, including the consent of holders of 60% in
    aggregate principal amount of the first mortgage bonds of each
    series affected by the modification. No modification of the
    principal or interest payment terms, no modification permitting
    the creation of any lien not otherwise permitted under the
    Mortgage, and no modification reducing the percentage required
    for modifications, will be effective without the consent of the
    holders of all first mortgage bonds then outstanding. The
    Mortgage may also be modified in various other respects not
    inconsistent with the Mortgage and which do not adversely affect
    the interests of the holders of bonds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Defeasance</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We may deposit with the Trustee in trust, at any time prior to
    maturity, cash sufficient to pay or redeem all or any portion of
    the Bonds, such cash amount to equal principal and interest to
    maturity or the date of redemption, as applicable, on the Bonds
    to be so repaid or redeemed. Upon defeasance in whole of the
    Bonds, we may request that the trust estate revert to us, in
    which case the Bonds will be cancelled, the trust estate will so
    revert, and the interest of the holders of the Bonds in the
    trust estate shall cease. In the case of defeasance of a portion
    of the Bonds only, upon deposit of funds sufficient to pay or
    redeem such Bonds (together with, in the case of a partial
    redemption, documentation required pursuant to the terms of the
    Mortgage), the Bonds identified for repayment or redemption, as
    the case may be, shall cease to be entitled to the benefit of
    the lien of the Mortgage (except the right to receive the funds
    so deposited), such Bonds shall be deemed not to be outstanding
    under the Mortgage, and interest on such Bonds shall cease to
    accrue.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-17
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Consolidation,
    Merger, and Conveyance of Assets</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The terms of the Mortgage do not preclude us from merging or
    consolidating with, or from transferring all of the trust estate
    substantially as an entirety to, a corporation lawfully entitled
    to acquire and operate our utility assets (a &#147;successor
    corporation&#148;), provided that the lien and security of the
    Mortgage and the rights and powers of the Trustee and the
    holders of the Bonds continue unimpaired. Any such merger,
    consolidation, or transfer, if it involves a successor
    corporation owning property subject to existing liens, must
    comply with the requirements of the Mortgage relating to the
    acquisition of property subject to a prior lien, which
    requirements are described in the third paragraph under
    &#147;Secured Obligations&#148; above. At or before the time of
    any such merger, consolidation, or transfer permitted by the
    Mortgage, the successor corporation must execute and record a
    supplemental indenture with the Trustee pursuant to which the
    successor corporation assumes all of our obligations under the
    Mortgage and agrees to pay the Bonds in accordance with their
    terms. Thereafter, the successor corporation will have the right
    to issue additional first mortgage bonds under the Mortgage in
    accordance with its terms, and all such first mortgage bonds
    shall have the same legal rank and security as the Bonds and the
    other first mortgage bonds issued under the Mortgage. Property
    acquired by the successor corporation after a merger,
    consolidation, or transfer described above shall not be subject
    to the lien of the Mortgage unless expressly made a part of the
    trust estate pursuant to a supplemental indenture.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Mortgage does not contain any provisions that afford holders
    of Bonds special protection in the event that we consummate a
    highly leveraged transaction; however, the Bonds would continue
    to be entitled to the benefit of a first priority lien on the
    property subject to the Mortgage (other than property acquired
    by us subject to a prior lien) as described above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Defaults and
    Notice</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Each of the following will constitute a default:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to pay the principal when due;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to pay interest for 60&#160;days after it is due;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to deposit any sinking or replacement fund payment for
    60&#160;days after it is due;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain events in bankruptcy, insolvency, or reorganization of
    us;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to perform any other covenant in the Mortgage that
    continues for 60&#160;days after being given written notice,
    including the failure to pay any of our other indebtedness.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Trustee may withhold notice to the holders of first mortgage
    bonds of any default (except in payment of principal, interest,
    or any sinking or purchase fund installment) if it in good faith
    determines that withholding notice is in the interest of the
    holders of the first mortgage bonds issued under the Mortgage.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If an event of default occurs and continues, the Trustee or the
    holders of at least 25% in aggregate principal amount of the
    first mortgage bonds may declare the entire principal and
    accrued interest due and payable immediately. If this happens,
    subject to certain conditions, the holders of a majority of the
    aggregate principal amount of the first mortgage bonds can annul
    the declaration and its consequences.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    No holder of first mortgage bonds may enforce the lien of the
    Mortgage, unless (i)&#160;it has given the Trustee written
    notice of default, (ii)&#160;the holders of 25% of the first
    mortgage bonds have requested the Trustee to act and have
    offered the Trustee reasonable indemnity, and (iii)&#160;the
    Trustee has failed to act within 60&#160;days. The holders of a
    majority in principal amount of the first mortgage bonds may
    direct the time, method, and place of conducting any
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-18
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    proceeding or any remedy available to the Trustee, or exercising
    any power conferred upon the Trustee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Evidence to be
    Furnished to the Trustee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Compliance with Mortgage provisions is evidenced by the written
    statements of our officers or persons we selected and paid. In
    certain cases, opinions of counsel and certificates of an
    engineer, accountant, appraiser, or other expert (who in some
    instances must be independent) must be furnished. Various
    certificates and other papers are required to be filed annually
    and upon the occurrence of certain events, including an annual
    certificate with respect to compliance with the terms of the
    Mortgage and the absence of defaults.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Concerning the
    Trustee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    HSBC Bank USA, National Association (formerly The Marine Midland
    Trust&#160;Company of New York) is the Trustee under the
    Mortgage. The holders of a majority in principal amount of the
    outstanding first mortgage bonds issued under the Mortgage may
    direct the time, method, and place of conducting any proceeding
    for exercising any remedy available to the Trustee, subject to
    certain exceptions. The Mortgage provides that if default occurs
    (and it is not cured), the Trustee will be required, in the
    exercise of its power, to use the degree of care of a prudent
    person in the conduct of such person&#146;s own affairs. Subject
    to these provisions, the Trustee will be under no obligation to
    exercise any of its rights or powers under the Mortgage at the
    request of any holder of securities issued under the Mortgage,
    unless that holder has offered to the Trustee security and
    indemnity satisfactory to it against any loss, liability, or
    expense, and then only to the extent required by the terms of
    the Mortgage. The Trustee may resign from its duties with
    respect to the Mortgage at any time or may be removed by us. If
    the Trustee resigns, is removed, or becomes incapable of acting
    as Trustee or a vacancy occurs in the office of the Trustee for
    any reason, a successor Trustee shall be appointed in accordance
    with the provisions of the Mortgage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Governing
    Law</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Mortgage and the first mortgage bonds issued thereunder are
    governed by, and construed in accordance with, the laws of the
    state of New York, except to the extent the Trust&#160;Indenture
    Act of 1939 otherwise applies.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-19
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='108'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">CERTAIN U.S.
    FEDERAL TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following discussion summarizes certain U.S.&#160;federal
    income tax considerations relevant to the purchase, ownership
    and disposition of the Bonds. This discussion is a summary for
    general information only and does not contain a complete
    analysis of all aspects of U.S.&#160;federal tax that may be
    relevant to the purchase, ownership and disposition of the
    Bonds. This discussion only applies to Bonds that are held as
    capital assets within the meaning of Section&#160;1221 of the
    Internal Revenue Code of 1986, as amended (the
    &#147;Code&#148;). This discussion does not describe all of the
    tax considerations that may be relevant to a particular holder
    in light of the holder&#146;s particular circumstances or to
    holders that are subject to special rules, such as:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    traders or dealers in securities or commodities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    tax-exempt organizations;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    banks and other financial institutions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    thrifts;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    insurance companies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons that hold the Bonds as part of a &#147;straddle,&#148;
    &#147;hedge,&#148; or &#147;conversion transaction&#148;;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    U.S.&#160;holders (as defined below) that have a
    &#147;functional currency&#148; other than the U.S.&#160;dollar;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    persons subject to the alternative minimum tax;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    pass-through entities (e.g., partnerships and grantor trusts) or
    investors who hold the Bonds through pass-through
    entities;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    certain former citizens or residents of the United States.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, this discussion is limited to the U.S.&#160;federal
    income tax consequences to initial holders that purchase the
    Bonds for cash at their initial &#147;issue price&#148; (i.e.,
    the initial offering price to the public, excluding bond houses
    and brokers, at which a substantial amount of the Bonds is sold)
    and does not discuss tax considerations that may be relevant to
    subsequent purchasers of the Bonds. It does not address the
    effect of the federal alternative minimum tax or describe any
    tax consequences arising out of the tax laws of any state,
    local, or foreign jurisdiction.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This discussion is based upon the Code, regulations of the
    Treasury Department, Internal Revenue Service (&#147;IRS&#148;)
    rulings and pronouncements and judicial decisions now in effect,
    all of which are subject to change (possibly with retroactive
    effect). We have not and will not seek any rulings or opinions
    from the IRS or counsel regarding the matters discussed below.
    There can be no assurance that the IRS will not take positions
    concerning the tax consequences of the purchase, ownership, or
    disposition of the Bonds that are different from those discussed
    below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>This summary is not, and should not be construed to be, legal
    or tax advice to any particular investor. Persons considering
    purchasing the Bonds should consult their own tax advisors
    concerning the application of U.S.&#160;federal tax laws, as
    well as the laws of any state, local or foreign taxing
    jurisdiction, and the possible effect of changes in applicable
    tax law to their particular situations.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">U.S.
    Holders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following discussion is limited to the U.S.&#160;federal
    income tax consequences relevant to a
    &#147;U.S.&#160;holder,&#148; which for purposes of this
    discussion means a beneficial owner of a Bond that is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an individual who is a citizen or resident of the United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a corporation or other entity taxable as a corporation for
    U.S.&#160;federal income tax purposes created or organized under
    the laws of the United States, any of its states or the District
    of Columbia;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an estate, the income of which is subject to U.S.&#160;federal
    income taxation regardless of its source;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a trust if (i)&#160;a U.S.&#160;court is able to exercise
    primary supervision over administration of the trust and one or
    more U.S.&#160;persons have authority to control all substantial
    decisions of the trust, or (ii)&#160;in the case of a trust that
    was treated as a domestic trust under the law in effect prior to
    1997, a valid election is in place under applicable Treasury
    regulations to treat such trust as a domestic trust.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In the case of a holder of the Bonds that is classified as a
    partnership for U.S.&#160;federal income tax purposes, the tax
    treatment of the Bonds to a partner in the partnership generally
    will depend upon the tax status of the partner and the
    activities of the partnership. A beneficial owner that is a
    partnership holding the Bonds and partners in such a partnership
    should consult their own tax advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Taxation of Stated Interest.</I>&#160;&#160;Stated interest
    on the Bonds generally will be includable in the income of a
    U.S.&#160;holder as ordinary interest income:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    when it accrues, if the U.S.&#160;holder uses the accrual method
    of accounting for U.S.&#160;federal income tax purposes;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    when received, if the U.S.&#160;holder uses the cash method of
    accounting for U.S.&#160;federal income tax purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Optional Redemption.</I>&#160;&#160;We may redeem the Bonds,
    in whole or in part, at our option (see &#147;Description of the
    Bonds&#151;Optional Redemption&#148;), in which case we may be
    obligated to pay an amount in excess of 100% of the principal
    amount of the Bonds. In general, a debt instrument is considered
    to have &#147;original issue discount&#148; for
    U.S.&#160;federal income tax purposes if it is issued for a
    price that is less than its &#147;stated redemption price at
    maturity.&#148; The &#147;stated redemption price at
    maturity&#148; of a debt instrument generally is the sum of all
    payments required under the debt instrument other than payments
    of stated interest that is unconditionally payable at least
    annually at a single fixed rate. A U.S.&#160;holder of a debt
    instrument with original issue discount generally is required to
    include in gross income the amount of original issue discount as
    it accrues, in accordance with a constant yield method, without
    regard to the timing of the receipt of cash payments
    attributable to this income. The Treasury regulations relating
    to original issue discount provide generally that the issuer of
    a debt instrument is deemed to not exercise an option if the
    issuer&#146;s failure to exercise the option would minimize the
    yield on the debt instrument. Pursuant to these Treasury
    regulations, we believe that the option to redeem should be
    deemed not exercised for purposes of calculating the yield and
    maturity of the Bonds. Thus, we believe that the existence of
    the option to redeem should not cause the Bonds to be considered
    to have original issue discount for U.S.&#160;federal income tax
    purposes. The tax consequences upon our redemption of the Bonds
    are described below under &#147;&#151;Sale or Other Taxable
    Disposition of Bonds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Sale or Other Taxable Disposition of Bonds.</I>&#160;&#160;A
    U.S.&#160;holder generally must recognize taxable gain or loss
    on the sale, redemption or other taxable disposition of a Bond.
    The
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    amount of a U.S.&#160;holder&#146;s gain or loss will equal the
    difference between the amount received for the Bond (in cash or
    other property, valued at fair market value), minus the amount
    attributable to accrued interest on the Bond (which will be
    treated as ordinary interest income to the extent not previously
    included in gross income), and the U.S.&#160;holder&#146;s
    adjusted tax basis in the Bond. A U.S.&#160;holder&#146;s
    initial tax basis in a Bond generally equals the price the
    U.S.&#160;holder paid for the Bond.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Any such gain or loss generally will constitute capital gain or
    loss and will be long-term capital gain or loss if the holder
    held the Bond for more than one year prior to the sale or other
    taxable disposition. Long-term capital gain of certain
    noncorporate U.S.&#160;holders currently is eligible for reduced
    rates of taxation. The deductibility of capital losses is
    subject to limitations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Information Reporting and Backup
    Withholding.</I>&#160;&#160;U.S.&#160;holders of Bonds may be
    subject, under certain circumstances, to information reporting
    and backup withholding on payments of principal and interest and
    on the gross proceeds from dispositions of the Bonds. Backup
    withholding applies only if the U.S.&#160;holder:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fails to furnish its social security or other taxpayer
    identification number within a reasonable time after a request
    for such information;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    furnishes an incorrect taxpayer identification number;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    has been notified by the IRS that it is subject to backup
    withholding for failure to report properly interest or
    dividends;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fails, under certain circumstances, to provide a certified
    statement, signed under penalty of perjury, that the taxpayer
    identification number provided is its correct number and that
    the holder is not subject to backup withholding.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Backup withholding is not an additional tax. Any amount withheld
    from a payment to a U.S.&#160;holder under the backup
    withholding rules generally is allowable as a credit against
    such U.S.&#160;holder&#146;s U.S.&#160;federal income tax
    liability, and may entitle the holder to a refund, provided that
    the required information is timely furnished to the IRS. Certain
    persons are exempt from backup withholding, including
    corporations and financial institutions. U.S.&#160;holders
    should consult their tax advisors as to their qualification for
    exemption from backup withholding and the procedure for
    obtaining such exemption.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We will furnish annually to the IRS, and to record holders of
    the Bonds to whom we are required to furnish such information,
    information relating to the amount of interest paid and the
    amount of tax withheld, if any, with respect to payments on the
    Bonds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica"><FONT style="white-space: nowrap">Non-U.S.</FONT>
    Holders</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The following discussion is limited to the U.S.&#160;federal
    income tax consequences relevant to a holder of a Bond that is
    neither a U.S.&#160;holder nor a partnership or other
    pass-through entity for U.S.&#160;federal income tax purposes (a
    <FONT style="white-space: nowrap">&#147;non-U.S.&#160;holder&#148;).</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <FONT style="white-space: nowrap">Non-U.S.&#160;holders</FONT>
    should consult their tax advisors about any applicable income
    tax treaties, which may provide for an exemption from or a lower
    rate of withholding tax, exemption from or reduction of branch
    profits tax, or other rules different from those described below.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Taxation of Stated Interest.</I>&#160;&#160;Subject to the
    discussion of backup withholding below, payments of interest on
    a Bond to any
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    generally will not be subject to U.S.&#160;federal income or
    withholding tax if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is not:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    an actual or constructive owner of 10% or more of the total
    voting power of the voting stock of PGE;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a controlled foreign corporation related (directly or
    indirectly) to PGE through stock ownership;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a bank receiving interest described in Section&#160;881(c)(3)(A)
    of the Code;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    such interest payments are not effectively connected with the
    conduct by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of a trade or business within the United States;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    we or our paying agent receives:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    from the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder,</FONT>
    a properly completed
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or substitute Form
    <FONT style="white-space: nowrap">W-8BEN</FONT> or
    the appropriate successor form) under penalties of perjury,
    which provides the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    name and address and certifies that the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is a
    <FONT style="white-space: nowrap">non-U.S.&#160;person;&#160;or</FONT>
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    from a security clearing organization, bank or other financial
    institution that holds the Bonds in the ordinary course of its
    trade or business (a &#147;financial institution&#148;) on
    behalf of the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder,</FONT>
    certification under penalties of perjury that such a
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or substitute
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or the appropriate successor form) has been received by it, or
    by another such financial institution, from the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder,</FONT>
    and a copy of the
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    (or substitute
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or the appropriate successor form) as applicable.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    cannot satisfy the foregoing requirements, payments of interest
    made to such
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    generally will be subject to 30% U.S.&#160;withholding tax
    unless such
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    provides us or our agent with a properly executed (i)&#160;IRS
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    claiming an exemption for or reduction of the withholding tax
    under the benefit of a tax treaty, or (ii)&#160;IRS
    <FONT style="white-space: nowrap">Form&#160;W-8ECI</FONT>
    stating that interest paid on a Bond is not subject to
    withholding tax because it is effectively connected with the
    conduct by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of a trade or business in the United States.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If interest on a Bond is effectively connected with the conduct
    by a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of a trade or business in the United States (and, if certain tax
    treaties apply, is attributable to a U.S.&#160;permanent
    establishment maintained by the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder),</FONT>
    such interest generally will be subject to U.S.&#160;federal
    income tax on a net basis at the rates applicable to
    U.S.&#160;persons (and, in the case of a corporate
    <FONT style="white-space: nowrap">non-U.S.&#160;holder,</FONT>
    may also be subject to a 30% branch profits tax, or lower rate
    provided by a tax treaty). If interest is subject to
    U.S.&#160;federal income tax on a net basis in accordance with
    the rules described in the preceding sentence, payments of such
    interest will not be subject to U.S.&#160;withholding tax if the
    holder provides us or the paying agent with appropriate
    certification as described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Sale or Other Taxable Disposition of
    Bonds.</I>&#160;&#160;Subject to the discussion of backup
    withholding below, any gain realized by a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    on the sale, redemption or other disposition of a Bond generally
    will not be subject to U.S.&#160;federal income tax, unless:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    such gain is effectively connected with the conduct by such
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    of a trade or business in the United States (and, if required by
    a tax treaty, is attributable to a permanent establishment or
    fixed base in the United States);&#160;or
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is an individual who is present in the United States for
    183&#160;days or more in the taxable year of the disposition and
    certain other conditions are satisfied.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Information Reporting and Backup
    Withholding.</I>&#160;&#160;In general, payments we make to a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    in respect of the Bonds will be reported annually to the IRS.
    Copies of these information returns also may be made available
    under the provisions of a specific tax treaty or other agreement
    to the tax authorities of the country in which the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    resides.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Treasury regulations provide that the U.S.&#160;federal backup
    withholding tax (currently at a rate of 28%) and certain
    information reporting will not apply to payments of interest
    with respect to which either (i)&#160;the requisite
    certification that a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is not a U.S.&#160;person, as described above, has been received
    or (ii)&#160;an exemption otherwise has been established,
    provided that neither we nor our paying agent have actual
    knowledge, or reason to know, that the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is a U.S.&#160;person or that the conditions of any other
    exemption are not, in fact, satisfied. The payment of the
    proceeds from the sale, redemption or other disposition of the
    Bonds to or through the U.S.&#160;office of any broker,
    U.S.&#160;or foreign, will be subject to information reporting
    and possibly backup withholding unless a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    certifies as to its
    <FONT style="white-space: nowrap">non-U.S.&#160;status</FONT>
    under penalties of perjury or otherwise establishes an
    exemption, provided that the broker does not have actual
    knowledge, or reason to know, that the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    is a U.S.&#160;person or that the conditions of any other
    exemption are not, in fact, satisfied. The payment of the
    proceeds from the sale, redemption, or other disposition of the
    Bonds to or through a
    <FONT style="white-space: nowrap">non-U.S.&#160;office</FONT>
    of a
    <FONT style="white-space: nowrap">non-U.S.&#160;broker</FONT>
    will not be subject to information reporting or backup
    withholding unless the
    <FONT style="white-space: nowrap">non-U.S.&#160;broker</FONT>
    has certain types of relationships with the United States (a
    &#147;U.S.&#160;related person&#148;). In the case of the
    payment of the proceeds from the sale, redemption or other
    disposition of the Bonds to or through a
    <FONT style="white-space: nowrap">non-U.S.&#160;office</FONT>
    of a broker that is either a U.S.&#160;person or a
    U.S.&#160;related person, Treasury Regulations require
    information reporting (but generally not backup withholding)
    unless the broker has documentary evidence in its files that the
    beneficial owner is a
    <FONT style="white-space: nowrap">non-U.S.&#160;holder</FONT>
    and the broker has no knowledge, or reason to know, to the
    contrary. Backup withholding is not an additional tax. Any
    amounts withheld under the backup withholding rules may be
    refunded or credited against the
    <FONT style="white-space: nowrap">non-U.S.&#160;holder&#146;s</FONT>
    U.S.&#160;federal income tax liability, provided that the
    requisite information is timely provided to the IRS.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>THE U.S.&#160;FEDERAL INCOME TAX DISCUSSION SET FORTH ABOVE
    IS INCLUDED FOR GENERAL INFORMATION ONLY AND MAY NOT BE
    APPLICABLE DEPENDING UPON A HOLDER&#146;S PARTICULAR
    CIRCUMSTANCES. HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS
    WITH RESPECT TO THE TAX CONSEQUENCES TO THEM OF THE PURCHASE,
    OWNERSHIP AND DISPOSITION OF BONDS, INCLUDING THE TAX
    CONSEQUENCES UNDER STATE, LOCAL, FOREIGN AND OTHER TAX LAWS AND
    THE POSSIBLE EFFECT OF CHANGES IN APPLICABLE TAX LAWS.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='109'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">BOOK-ENTRY
    SYSTEM</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We have obtained the information in this section concerning The
    Depository Trust&#160;Company, or DTC, and its book-entry system
    and procedures from sources that we believe to be reliable, but
    we take no responsibility for the accuracy of this information.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Bonds initially will be represented by one or more fully
    registered global securities. Each global security will be
    deposited with, or on behalf of, DTC or any successor thereto
    and registered in the name of Cede&#160;&#038; Co., DTC&#146;s
    nominee or another nominee designated by DTC.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    You may hold your interests in a global security through DTC,
    either as a participant in such system or indirectly through
    organizations which are participants in such system. So long as
    DTC or its nominee is the registered owner of the global
    securities representing the Bonds, DTC or such nominee will be
    considered the sole owner and holder of the Bonds for all
    purposes of the Bonds and the Mortgage. Except as provided
    below, owners of beneficial interests in the Bonds will not be
    entitled to have the Bonds registered in their names, will not
    receive or be entitled to receive physical delivery of the Bonds
    in definitive form and will not be considered the owners or
    holders of the Bonds under the Mortgage, including for purposes
    of receiving any reports that we or the Trustee deliver pursuant
    to the Mortgage. Accordingly, each person owning a beneficial
    interest in a Bond must rely on the procedures of DTC or its
    nominee and, if such person is not a participant, on the
    procedures of the participant through which such person owns its
    interest, in order to exercise any rights of a holder of Bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Unless and until we issue the Bonds in fully certificated form
    under the limited circumstances described below under the
    heading &#147;&#151;Certificated Bonds&#148;:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    you will not be entitled to receive physical delivery of a
    certificate representing your interest in the Bonds;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all references in this prospectus supplement or in the
    accompanying prospectus to actions by holders will refer to
    actions taken by DTC upon instructions from its direct
    participants;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all references in this prospectus supplement or the accompanying
    prospectus to payments and notices to holders will refer to
    payments and notices to DTC or its nominee, as the registered
    holder of the Bonds, for distribution to you in accordance with
    DTC procedures.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">The Depository
    Trust&#160;Company</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    DTC will act as securities depositary for the Bonds. The Bonds
    will be issued as fully registered securities registered in the
    name of Cede&#160;&#038; Co. or another nominee designated by
    DTC. DTC is:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a limited-purpose trust company organized under the New York
    Banking Law;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;banking organization&#148; under the New York Banking
    Law;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a member of the Federal Reserve System;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;clearing corporation&#148; under the New York Uniform
    Commercial Code;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a &#147;clearing agency&#148; registered under the provisions of
    Section&#160;17A of the Securities Exchange Act of 1934.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    DTC holds securities that its direct participants deposit with
    DTC. DTC also facilitates the settlement among participants of
    securities transactions, such as transfers and pledges, in
    deposited securities through electronic computerized book-entry
    changes in direct participants&#146; accounts, thereby
    eliminating the need for physical movement of securities
    certificates.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Direct participants include securities brokers and dealers,
    banks, trust companies, clearing corporations and certain other
    organizations. DTC is a wholly-owned subsidiary of The
    Depository Trust&#160;&#038; Clearing Corporation
    (&#147;DTCC&#148;). DTCC is the holding company for DTC,
    National Securities Clearing Corporation, and Fixed Income
    Clearing Corporation. DTCC is owned by users of its regulated
    subsidiaries. Access to the DTC system is also available to
    indirect participants such as securities brokers and dealers,
    banks and trust companies that clear transactions through or
    maintain a custodial relationship with a direct participant,
    either directly or indirectly. The rules applicable to DTC and
    its participants are on file with the SEC. More information
    about DTC can be found at <I>www.dtcc.com </I>and
    <I>www.dtc.org</I>.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If you are not a direct participant or an indirect participant
    and you wish to purchase, sell or otherwise transfer ownership
    of, or other interests in the Bonds, you must do so through a
    direct participant or an indirect participant. DTC agrees with
    and represents to DTC participants that it will administer its
    book-entry system in accordance with its rules and by-laws and
    requirements of law. The SEC has on file a set of the rules
    applicable to DTC and its direct participants.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Purchases of the Bonds under DTC&#146;s system must be made by
    or through direct participants, which will receive a credit for
    the Bonds on DTC&#146;s records. The ownership interest of each
    beneficial owner is in turn to be recorded on the records of
    direct participants and indirect participants. Beneficial owners
    will not receive written confirmation from DTC of their
    purchase, but beneficial owners are expected to receive written
    confirmations providing details of the transaction, as well as
    periodic statements of their holdings, from the direct or
    indirect participants through which such beneficial owners
    entered into the transaction. Transfers of ownership interests
    in the Bonds are to be accomplished by entries made on the books
    of direct and indirect participants acting on behalf of
    beneficial owners. Beneficial owners will not receive physical
    delivery of certificates representing their ownership interests
    in the Bonds, except as provided below in
    &#147;&#151;Certificated Bonds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    To facilitate subsequent transfers, all Bonds deposited with DTC
    are registered in the name of a nominee designated by DTC. The
    deposit of Bonds with DTC and their registration in the name of
    such nominee has no effect on beneficial ownership. DTC has no
    knowledge of the actual beneficial owners of the Bonds.
    DTC&#146;s records reflect only the identity of the direct
    participants to whose accounts such Bonds are credited, which
    may or may not be the beneficial owners. The participants will
    remain responsible for keeping account of their holdings on
    behalf of their customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Conveyance of notices and other communications by DTC to direct
    participants, by direct participants to indirect participants,
    and by direct and indirect participants to beneficial owners
    will be governed by arrangements among them, subject to any
    statutory or regulatory requirements as may be in effect from
    time to time.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Book-Entry
    Format</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the book-entry format, the Trustee will pay interest and
    principal payments to the nominee of DTC. DTC will forward the
    payment to the direct participants, who will then forward the
    payment to the indirect participants or to the beneficial
    owners. You may experience some delay in receiving your payments
    under this system.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    DTC is required to make book-entry transfers on behalf of its
    direct participants and is required to receive and transmit
    payments of principal, premium, if any, and interest on the
    Bonds. Any direct participant or indirect participant with which
    you have an account is similarly required to make book-entry
    transfers and to receive and transmit payments with respect to
    Bonds on your behalf. We and the Trustee have no responsibility
    or liability for any aspect of the records relating to or
    payments made on account of beneficial ownership interests in
    the Bonds or for maintaining, supervising or reviewing any
    records relating to such beneficial ownership interests.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-26
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Trustee will not recognize you as a holder of any Bonds
    under the Mortgage and you can only exercise the rights of a
    holder indirectly through DTC and its direct participants. DTC
    has advised us that it will only take action regarding a Bond if
    one or more of the direct participants to whom the Bond is
    credited direct DTC to take such action. DTC can only act on
    behalf of its direct participants. Your ability to pledge Bonds
    to indirect participants, and to take other actions, may be
    limited because you will not possess a physical certificate that
    represents your Bonds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Certificated
    Bonds</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Unless and until exchanged, in whole or in part, for Bonds in
    definitive form in accordance with the terms of the Bonds, the
    Bonds may not be transferred except as a whole by DTC to a
    nominee of DTC; as a whole by a nominee of DTC to DTC or another
    nominee of DTC; or as a whole by DTC or nominee of DTC to a
    successor of DTC or a nominee of such successor. The global
    security will be exchangeable for corresponding certificated
    bonds registered in the name of persons other than DTC or its
    nominee only if (i)&#160;DTC (a)&#160;notifies us that it is
    unwilling or unable to continue as a depositary for any of the
    global bonds or (b)&#160;at any time ceases to be a clearing
    agency registered under the Securities Exchange Act of 1934,
    (ii)&#160;there shall have occurred and be continuing an event
    of default with respect to the Bonds or (iii)&#160;we have
    executed and delivered to the Trustee an order that the global
    security will be so exchangeable.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='110'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">UNDERWRITING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Subject to the terms and conditions of the underwriting
    agreement, the underwriters named below, through their
    representatives Deutsche Bank Securities Inc. and Wachovia
    Capital Markets, LLC, have severally agreed to purchase from us
    the following respective principal amounts of Bonds listed
    opposite their name below at the public offering price less the
    underwriting discounts and commissions set forth on the cover
    page of this prospectus supplement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="82%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="14%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Principal<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Underwriters</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Amount of Bonds</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Deutsche Bank Securities Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 20pt">
    Wachovia Capital Markets, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -20pt; margin-left: 30pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The underwriting agreement provides that the obligations of the
    several underwriters to purchase the Bonds offered hereby are
    subject to certain conditions precedent and that the
    underwriters will purchase all of the Bonds offered by this
    prospectus supplement if any of these Bonds are purchased.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We have been advised by the representatives of the underwriters
    that the underwriters propose to offer the Bonds to the public
    at the public offering price set forth on the cover of this
    prospectus supplement and to dealers at a price that represents
    a concession not in excess of 0.&#160;&#160;&#160;&#160;&#160;%
    of the principal amount of the Bonds. The underwriters may
    allow, and these dealers may re-allow, a concession of not more
    than 0.&#160;&#160;&#160;&#160;&#160;% of the principal amount
    of the Bonds to other dealers. After the initial public
    offering, representatives of the underwriters may change the
    offering price and other selling terms.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, we estimate that our share of the total expenses of
    this offering, excluding underwriting discounts and commissions,
    will be approximately $400,000.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We have agreed to indemnify the underwriters against some
    specified types of liabilities, including liabilities under the
    Securities Act, and to contribute to payments the underwriters
    may be required to make in respect of any of these liabilities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The representatives of the underwriters have advised us that the
    underwriters do not intend to confirm sales to any account over
    which they exercise discretionary authority.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Bonds are a new issue of securities with no established
    trading market. The Bonds will not be listed on any securities
    exchange or on any automated dealer quotation system. The
    underwriters may make a market in the Bonds after completion of
    the offering, but will not be obligated to do so and may
    discontinue any market-making activities at any time without
    notice. No assurance can be given as to the liquidity of the
    trading market for the Bonds or that an active public market for
    the Bonds will develop. If an active public trading market for
    the Bonds does not develop, the market price and liquidity of
    the Bonds may be adversely affected.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In connection with the offering, the underwriters may purchase
    and sell the Bonds in the open market. These transactions may
    include short sales, purchases to cover positions created by
    short sales and stabilizing transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Short sales involve the sale by the underwriters of a greater
    principal amount of Bonds than they are required to purchase in
    the offering. The underwriters may close out any short position
    by purchasing Bonds in the open market. A short position is more
    likely to be created if underwriters are concerned that there
    may be downward pressure on the price of the Bonds in the open
    market prior to the completion of the offering.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-28
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Stabilizing transactions consist of various bids for or
    purchases of the Bonds made by the underwriters in the open
    market prior to the completion of the offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The underwriters may impose a penalty bid. This occurs when a
    particular underwriter repays to the other underwriters a
    portion of the underwriting discount received by it because the
    representatives of the underwriters have repurchased Bonds sold
    by or for the account of that underwriter in stabilizing or
    short covering transactions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Purchases to cover a short position and stabilizing transactions
    may have the effect of preventing or slowing a decline in the
    market price of the Bonds. Additionally, these purchases, along
    with the imposition of the penalty bid, may stabilize, maintain
    or otherwise affect the market price of the Bonds. As a result,
    the price of the Bonds may be higher than the price that might
    otherwise exist in the open market. These transactions may be
    effected in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market or otherwise.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Certain of the underwriters and their affiliates have provided
    in the past to us and our affiliates and may provide from time
    to time in the future certain commercial banking, financial
    advisory, investment banking, and other services for us and such
    affiliates in the ordinary course of their business, for which
    they have received and may continue to receive customary fees
    and commissions. In addition, from time to time, certain of the
    underwriters and their affiliates may effect transactions for
    their own account or the account of customers, and hold on
    behalf of themselves or their customers, long or short positions
    in our debt or equity securities or loans, and may do so in the
    future. Affiliates of all representatives of the underwriters
    are lenders under our revolving credit facilities.
</DIV>
<A name='111'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">WHERE YOU CAN
    FIND MORE INFORMATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports, proxy statements
    and other information with the SEC. Our SEC filings are
    available to the public from the SEC&#146;s web site at
    <I>www.sec.gov</I>. You may also read and copy any document we
    file with the SEC at the SEC&#146;s public reference room
    located at 100&#160;F&#160;Street, N.E., Washington,&#160;D.C.
    20549. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information regarding the public reference room. In
    addition, our common stock is listed and traded on the New York
    Stock Exchange. You may also inspect the information we file
    with the SEC at the offices of the NYSE at 20&#160;Broad Street,
    New York, New York 10005. Information about us, including our
    SEC filings, is also available through our web site at
    <I>www.portlandgeneral.com</I>. However, information on our web
    site is not incorporated into this prospectus supplement or our
    other SEC filings and is not a part of this prospectus
    supplement or those filings.
</DIV>
<A name='112'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">INCORPORATION OF
    CERTAIN DOCUMENTS BY REFERENCE</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The SEC allows us to &#147;incorporate by reference&#148; the
    information we file with the SEC. This means that we can
    disclose important information to you by referring you to
    another filed document. Any information referred to in this way
    is considered part of this prospectus supplement from the date
    we file that document. Any reports filed by us with the SEC
    after the date of this prospectus supplement and information
    that we file later with the SEC will automatically update and,
    where applicable, supersede any information contained in this
    prospectus supplement or incorporated by reference in this
    prospectus supplement. This prospectus supplement incorporates
    by reference the documents incorporated in the accompanying
    prospectus at the time the registration became effective and all
    later documents filed with the SEC, in all cases as updated and
    superseded by later filings with the SEC.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-29
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Accordingly, we incorporate by reference the following documents
    or information filed with the SEC:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2008, which we filed
    with the SEC on February&#160;25, 2009;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Those portions of the definitive proxy statement for our 2009
    annual meeting of shareholders, filed on April&#160;3, 2009 that
    are incorporated by reference into our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K,</FONT>
    which we filed with the SEC on January&#160;16, 2009,
    January&#160;28, 2009, and March&#160;6, 2009 (with respect to
    Item&#160;8.01 and Exhibits&#160;1.1, 5.1, and 23.1 thereto); and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    All documents filed by us in accordance with
    Sections&#160;13(a), 13(c), 14, or 15(d) of the Securities
    Exchange Act of 1934 on or after the date of this prospectus and
    before the termination of an offering under this prospectus,
    other than documents or information deemed furnished and not
    filed in accordance with SEC rules.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We will provide to each person, including any beneficial owner,
    to whom a copy of this prospectus supplement has been delivered,
    without charge, upon the written or oral request of such person,
    a copy of any or all of the documents that are incorporated by
    reference into this prospectus, other than exhibits to such
    documents, unless such exhibits are specifically incorporated by
    reference into the information that this prospectus
    incorporates. You should direct requests for such copies to:
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Portland General Electric Company
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    121 SW Salmon Street
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Portland, Oregon 97204
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Attention: Assistant Treasurer
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Telephone:
    <FONT style="white-space: nowrap">(503)&#160;464-8322</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In reviewing any agreements included as exhibits to the
    registration statement relating to this offering or to other SEC
    filings incorporated by reference into this prospectus
    supplement, please be aware that these agreements are attached
    as exhibits to provide you with information regarding their
    terms and are not intended to provide any other factual or
    disclosure information about us or the other parties to the
    agreements. The agreements may contain representations and
    warranties by each of the parties to the applicable agreement,
    which representations and warranties may have been made solely
    for the benefit of the other parties to the applicable agreement
    and, as applicable:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    should not in all instances be treated as categorical statements
    of fact, but rather as a way of allocating the risk to one of
    the parties if those statements prove to be inaccurate;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    have been qualified by disclosures that may have been made to
    the other party in connection with the negotiation of the
    applicable agreement, which disclosures are not necessarily
    reflected in the agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    may apply standards of materiality in a way that is different
    from what may be viewed as material to you or other
    investors;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    were made only as of the date of the applicable agreement or
    such other date or dates as may be specified in the agreement
    and are subject to more recent developments.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Accordingly, these representations and warranties may not
    describe the actual state of affairs as of the date they were
    made or at any other time and should not be relied upon by
    investors in considering whether to invest in our common stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='113'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">LEGAL
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Certain legal matters with respect to the Bonds offered by this
    prospectus supplement will be passed upon for us by Stoel Rives
    LLP, Portland, Oregon, and J. Jeffrey Dudley, our General
    Counsel. As of March&#160;31, 2009, Mr.&#160;Dudley owned
    1,360&#160;shares of our common stock, which number excludes up
    to 27,188&#160;shares underlying restricted stock units and
    dividend equivalent rights awarded to Mr.&#160;Dudley that may
    vest after March&#160;31, 2009, assuming maximum payouts under
    performance-based awards. Pursuant to various stock and employee
    benefit plans, Mr.&#160;Dudley is eligible to purchase and
    receive shares of our common stock and to receive options to
    purchase shares of common stock. Certain legal matters in
    connection with this offering will be passed upon for the
    underwriters by Davis Polk&#160;&#038; Wardwell, New York,
    New&#160;York.
</DIV>
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">EXPERTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The financial statements incorporated into this prospectus
    supplement by reference from our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2008 and the effectiveness
    of internal control over financial reporting have been audited
    by Deloitte&#160;&#038; Touche LLP, an independent registered
    public accounting firm, as stated in their report, which is
    incorporated herein by reference. Such financial statements have
    been so incorporated in reliance upon the report of such firm
    given upon their authority as experts in accounting and auditing.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    S-31
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>PROSPECTUS</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <IMG src="v52074b5v5161801.gif" alt="PORTLAND GENERAL ELECTRIC COMPANY LOGO"><B>
    </B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 24pt">Portland General Electric
    Company</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">Common Stock</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 18pt">First Mortgage Bonds</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We may offer and sell from time to time, in one or more
    offerings, shares of our common stock and first mortgage bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition, selling shareholders to be named in a prospectus
    supplement may offer our common stock from time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This prospectus describes some of the general terms that may
    apply to these securities. The specific terms of any securities
    to be offered will be described in a supplement to this
    prospectus. A prospectus supplement may also add, update or
    change information contained in this prospectus. You should read
    this prospectus and the applicable prospectus supplement
    carefully before you make your investment decision.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>This prospectus may not be used to sell securities unless
    accompanied by a prospectus supplement.</B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We and any selling shareholder may offer and sell these
    securities through one or more underwriters, dealers and agents,
    underwriting syndicates managed or co-managed by one or more
    underwriters, or directly to purchasers, on a continuous or
    delayed basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The prospectus supplement for each offering of securities will
    describe the plan of distribution for that offering. Our common
    stock is listed on the New York Stock Exchange under the trading
    symbol &#147;POR.&#148; The prospectus supplement will indicate
    if the securities offered thereby will be listed on any
    securities exchange.
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus or the accompanying
    prospectus supplement is truthful or complete. Any
    representation to the contrary is a criminal offense.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>The date of this prospectus is June&#160;1, 2007.</B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=0 -->

<P align="left" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information incorporated by
    reference or provided in this prospectus. We have not authorized
    anyone to provide you with different information. You should not
    assume that the information provided in this prospectus, any
    prospectus supplement, the documents incorporated by reference
    or any other offering material is accurate as of any date other
    than the date on the front of those documents, as applicable.</B>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Table of
    contents</FONT></B>
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B><FONT style="font-size: 16pt">Prospectus</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Page</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#114'>ABOUT THIS PROSPECTUS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#115'>INFORMATION REGARDING FORWARD-LOOKING
    STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    iii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#117'>USE OF PROCEEDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#118'>DESCRIPTION OF COMMON STOCK</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#119'>DESCRIPTION OF FIRST MORTGAGE BONDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#120'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#121'>INCORPORATION OF CERTAIN DOCUMENTS BY
    REFERENCE</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#122'>LEGAL MATTERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    10
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#123'>EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    11
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='114'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">About this
    prospectus</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This prospectus is part of a registration statement that we
    filed with the Securities and Exchange Commission, or SEC,
    utilizing a &#147;shelf&#148; registration process. Under this
    shelf process, we may, from time to time, sell common stock and
    first mortgage bonds as described in this prospectus, in one or
    more offerings, and selling shareholders to be named in a
    prospectus supplement may, from time to time, sell our common
    stock in one or more offerings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This prospectus may not be used to sell securities unless
    accompanied by a prospectus supplement. This prospectus provides
    you with a general description of the common stock and first
    mortgage bonds that we, or selling shareholders, may offer. Each
    time we sell common stock or first mortgage bonds or selling
    shareholders sell common stock, we will provide a prospectus
    supplement that will contain specific information about the
    terms of that offering, including the specific amounts, prices
    and terms of the common stock or first mortgage bonds offered.
    The prospectus supplements may also add, update or change
    information contained in this prospectus. You should read both
    this prospectus and any prospectus supplement together with the
    additional information described under the heading &#147;Where
    You Can Find More Information&#148; and &#147;Incorporation of
    Certain Documents by Reference.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This prospectus and any accompanying prospectus supplement do
    not contain all of the information included in the registration
    statement as permitted by the rules and regulations of the SEC.
    For further information, we refer you to the registration
    statement on
    <FONT style="white-space: nowrap">Form&#160;S-3,</FONT>
    including its exhibits. We are subject to the informational
    requirements of the Securities Exchange Act of 1934 and,
    therefore, file reports and other information with the SEC. Our
    file number with the SEC is 1-5532-99. Statements contained in
    this prospectus and any accompanying prospectus supplement or
    other offering material about the provisions or contents of any
    agreement or other document are only summaries. If SEC rules
    require that any agreement or document be filed as an exhibit to
    the registration statement, you should refer to that agreement
    or document for its complete contents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Unless otherwise stated or the context otherwise requires,
    references in this prospectus to &#147;PGE,&#148;
    &#147;we,&#148; &#147;our&#148; or &#147;us&#148; refer to
    Portland General Electric Company and its subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    You should rely only on the information contained or
    incorporated by reference in this prospectus. We have not
    authorized anyone to provide you with different information. If
    anyone provides you with different or inconsistent information,
    you should not rely on it. We are not making an offer to sell
    these securities in any jurisdiction where the offer or sale is
    not permitted.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    You should not assume that the information provided in this
    prospectus, any prospectus supplement or any other offering
    material is accurate as of any date other than the date on the
    front of those documents, as applicable. Our business, financial
    condition, results of operations and prospects may have changed
    since that date.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='115'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Information
    regarding forward-looking statements</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Some of the statements included in this prospectus and the other
    public filings incorporated by reference herein constitute
    forward-looking statements within the meaning of
    Section&#160;27A of the Securities Act of 1933 and
    Section&#160;21E of the Securities Exchange Act of 1934.
    <FONT style="white-space: nowrap">Forward-looking</FONT>
    statements are statements of expectations, beliefs, plans,
    objectives, assumptions or future events or performance. Words
    or phrases such as &#147;anticipates,&#148;
    &#147;believes,&#148; &#147;should,&#148; &#147;estimates,&#148;
    &#147;expects,&#148; &#147;intends,&#148; &#147;plans,&#148;
    &#147;predicts,&#148; &#147;projects,&#148; &#147;will likely
    result,&#148; &#147;will continue,&#148; or similar expressions
    identify forward-looking statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Forward-looking statements are not guarantees of future
    performance and involve risks and uncertainties that could cause
    actual results or outcomes to differ materially from those
    expressed. Our expectations, beliefs and projections are
    expressed in good faith and are believed by us to have a
    reasonable basis including, without limitation,
    management&#146;s examination of historical operating trends,
    data contained in records and other data available from third
    parties, but there can be no assurance that our expectations,
    beliefs or projections will be achieved or accomplished.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In addition to other factors and matters discussed elsewhere in
    this prospectus or incorporated by reference, some important
    factors that could cause our actual results or outcomes to
    differ materially from those discussed in forward-looking
    statements include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    governmental policies and regulatory investigations and actions,
    including those of the Federal Energy Regulatory Commission, or
    FERC, and the Public Utility Commission of Oregon with respect
    to allowed rates of return, financings, electricity pricing and
    rate structures, acquisition and disposal of assets and
    facilities, operation and construction of plant facilities,
    recovery of net variable power costs and other capital
    investments, and present or prospective wholesale and retail
    competition;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the effects of Oregon law related to utility rate treatment of
    income taxes (SB 408), which may result in earnings volatility
    and adverse effects on operating results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    events related to City of Portland, Oregon investigations with
    regard to rates charged by PGE, and any attempt by the City of
    Portland to set rates for our customers located within the City
    of Portland;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    final resolution of matters related to the Bonneville Power
    Administration Residential Exchange program payments;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    changes in weather, hydroelectric, and energy market conditions,
    which could affect our ability and cost to procure adequate
    supplies of fuel or purchased power to serve our customers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    wholesale energy prices (including the effect of FERC price
    controls) and their effect on the availability and price of
    wholesale power purchases and sales in the western United States;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the completion of major generating plants on schedule and within
    budget;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    weather conditions that directly influence customer demand for
    electricity and damage to our facilities from major storms;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the effectiveness of our risk management policies and procedures
    and the creditworthiness of customers and counterparties;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    iii
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    operational factors affecting our power generation facilities;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    increasing national and international concerns regarding global
    warming and proposed regulations that could result in
    requirements for additional pollution control equipment or
    significant emissions fees or taxes, particularly with respect
    to coal-fired generation facilities, to mitigate carbon dioxide
    and other gas emissions, including regional haze and mercury
    emissions affecting the company&#146;s thermal generating plants;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    changes in, and compliance with, environmental and endangered
    species laws and policies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    financial or regulatory accounting principles or policies
    imposed by governing bodies;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    residential, commercial and industrial growth and demographic
    patterns in our service territory;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the loss of any significant customer, or changes in the business
    of a major customer, that may result in changes in demand for
    our services;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    our ability to access the capital markets to support
    requirements for working capital, construction costs and the
    repayment of maturing debt;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    capital market conditions, including interest rate fluctuations
    and capital availability;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    changes in our credit ratings, which could have an impact on the
    availability and cost of capital;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    new federal, state and local laws that could have adverse
    effects on operating results;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    legal and regulatory proceedings and issues;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    employee workforce factors, including strikes, work stoppages
    and the loss of key executives;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    general political, economic and financial market conditions; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    terrorist activities.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Any forward-looking statement speaks only as of the date on
    which such statement is made, and, except as required by law, we
    undertake no obligation to update any forward-looking statement
    to reflect events or circumstances after the date on which such
    statement is made or to reflect the occurrence of unanticipated
    events. New factors emerge from time to time and it is not
    possible for management to predict all such factors, nor can it
    assess the impact of any such factor on the business or the
    extent to which any factor, or combination of factors, may cause
    results to differ materially from those contained in any
    forward-looking statement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    iv
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='116'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Portland General
    Electric Company</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Portland General Electric Company, incorporated in the State of
    Oregon in 1930, is a single, integrated electric utility engaged
    in the generation, purchase, transmission, distribution and
    retail sale of electricity in the State of Oregon. Our service
    area is located entirely within Oregon and includes 52
    incorporated cities, of which Portland and Salem are the
    largest, within a state-approved service area allocation of
    approximately 4,000&#160;square miles. We estimate that at the
    end of 2006 our service area population was approximately
    1.6&#160;million, comprising about 43% of the state&#146;s
    population. At March&#160;31, 2007, we served approximately
    796,000 retail customers. Additionally, as part of our regulated
    business we participate in the western wholesale marketplace
    selling electricity and natural gas to utilities and energy
    marketers in order to balance our supply of power to meet the
    needs of retail customers. We operate as a single segment, with
    revenues and costs related to our business activities maintained
    and analyzed on a total electric operations basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Our principal executive offices are located at 121 SW Salmon
    Street, Portland, Oregon 97204. Our telephone number is
    <FONT style="white-space: nowrap">(503)&#160;464-8000.</FONT>
    Our web site is <I>www.portlandgeneral.com</I>. Information
    contained on our web site does not constitute a part of this
    prospectus.
</DIV>
<A name='117'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Use of
    proceeds</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Unless otherwise indicated in the applicable prospectus
    supplement, we intend to use the net proceeds of any securities
    sold for general corporate purposes. To the extent any shares of
    our common stock are being offered for the account of selling
    shareholders, we will not receive any of the proceeds from the
    sale of such shares.
</DIV>
<A name='118'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Description of
    common stock</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>The following summary is not complete. You should refer to
    the applicable provisions of our Amended and Restated Articles
    of Incorporation and our Fourth Amended and Restated Bylaws and
    to Oregon corporate law for a complete understanding of the
    terms and rights of our common stock.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Our Amended and Restated Articles of Incorporation provide that
    we have authority to issue up to 80,000,000&#160;shares of
    common stock, no par value. Our common stock is listed and
    traded on the New York Stock Exchange under the ticker symbol
    &#147;POR.&#148; The transfer agent and registrar for our common
    stock is American Stock Transfer&#160;&#038; Trust&#160;Company.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Voting
    rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Except as otherwise provided by law or our Articles of
    Incorporation, and subject to the rights of holders of any
    outstanding shares of our preferred stock, all of the voting
    power of our shareholders is vested in the holders of our common
    stock, and each holder of common stock has one vote for each
    share on all matters voted upon by our shareholders. Our
    Articles of Incorporation do not provide for cumulative voting
    for the election of directors.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    1
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Dividend
    Rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Except as otherwise provided by law, regulatory restriction or
    the Articles of Incorporation, and subject to the rights of
    holders of any outstanding shares of our preferred stock,
    holders of our common stock shall be entitled to receive
    dividends when and as declared by the Board of Directors out of
    any funds legally available for the payment of dividends.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Preemptive
    rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Holders of our common stock do not have any preemptive or other
    rights to subscribe for, purchase or receive any proportionate
    or other amount of our common stock or any securities of the
    company convertible into our common stock upon the issuance of
    our common stock or any such convertible securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Liquidation
    rights</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If we were voluntarily or involuntarily liquidated, dissolved or
    wound up, the holders of our outstanding shares of common stock
    would be entitled to share in the distribution of all assets
    remaining after payment of all of our liabilities and after
    satisfaction of prior distribution rights and payment of any
    distributions owing to holders of any outstanding shares of our
    preferred stock.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Liability for
    calls and assessments</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The outstanding shares of our common stock are validly issued,
    fully paid and non-assessable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Shareholder
    action</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Except as required by law, a majority of the shares of our
    common stock entitled to be voted at a meeting constitutes a
    quorum for the transaction of business at a meeting. Each
    matter, other than the election of directors, is decided by a
    majority of votes cast. Directors are elected by a plurality of
    votes cast by the shares entitled to vote in an election at a
    meeting at which a quorum is present. Special meetings of our
    shareholders may be called by our Chairman of the Board, our
    Chief Executive Officer, our President or by our Board of
    Directors, and shall be called by our President (or in the event
    of absence, incapacity or refusal of our President, by our
    Secretary or any other officer) upon the signed written request
    of the holders of not less than 10&#160;percent (unless our
    Articles of Incorporation provide otherwise) of all votes
    entitled to be cast on any issue proposed to be considered at
    the proposed special meeting.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Except as otherwise provided by law or in our Articles of
    Incorporation, and subject to restrictions on the taking of
    shareholder action without a meeting under applicable law or the
    rules of a national securities association or exchange, action
    required or permitted by law to be taken at a shareholders&#146;
    meeting may be taken without a meeting if the action is taken by
    shareholders having not less than the minimum number of votes
    that would be required to take such action at a meeting at which
    all shareholders entitled to vote on the action were present and
    voted.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    2
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Provisions with
    possible anti-takeover effects</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    An Oregon company may provide in its articles of incorporation
    or bylaws that certain control share and business combination
    provisions in the Oregon Business Corporation Act do not apply
    to its shares. We have not opted-out of these provisions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Oregon Control Share Act.</I>&#160;We are subject to
    Sections&#160;60.801 through 60.816 of the Oregon Business
    Corporation Act, known as the &#147;Oregon Control Share
    Act.&#148; The Oregon Control Share Act generally provides that
    a person who acquires voting stock of an Oregon corporation, in
    a transaction that results in the acquiror holding more than
    20%,
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    or 50% of the total voting power of the corporation, cannot vote
    the shares it acquires in the acquisition. An acquiror is
    broadly defined to include companies or persons acting as a
    group to acquire the shares of the Oregon corporation. This
    restriction does not apply if voting rights are given to the
    control shares by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a majority of the outstanding voting shares, including shares
    held by the company&#146;s officers and employee directors; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a majority of the outstanding voting shares, excluding the
    control shares held by the acquiror and shares held by the
    company&#146;s officers and employee directors.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    In order to retain the voting rights attached to acquired
    shares, this vote would be required when an acquiror&#146;s
    holdings exceed 20% of the total voting power, and again at the
    time the acquiror&#146;s holdings exceed
    33<FONT style="vertical-align: text-top; font-size: 70%;">1</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    and 50%, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The acquiror may, but is not required to, submit to the target
    company an &#147;acquiring person statement&#148; including
    specific information about the acquiror and its plans for the
    company. The acquiring person statement may also request that
    the company call a special meeting of shareholders to determine
    whether the control shares will be allowed to have voting
    rights. If the acquiror does not request a special meeting of
    shareholders, the issue of voting rights of control shares will
    be considered at the next annual or special meeting of
    shareholders that is held more than 60&#160;days after the date
    of the acquisition of control shares. If the acquiror&#146;s
    control shares are allowed to have voting rights and represent a
    majority or more of all voting power, shareholders who do not
    vote in favor of voting rights for the control shares will have
    the right to receive the appraised fair value of their shares,
    which may not be less than the highest price paid per share by
    the acquiror for the control shares.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Shares are not deemed to be acquired in a control share
    acquisition if, among other things, they are acquired from the
    issuing corporation, or are issued pursuant to a plan of merger
    or exchange effected in compliance with the Oregon Business
    Corporation Act and the issuing corporation is a party to the
    merger or exchange agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>Oregon Business Combination Act.</I>&#160;We are also subject
    to Sections&#160;60.825 through 60.845 of the Oregon Business
    Corporation Act, known as the &#147;Oregon Business Combination
    Act.&#148; The Oregon Business Combination Act governs business
    combinations between Oregon corporations and a person or entity
    that acquires 15% or more of the outstanding voting stock of the
    corporation, thereby becoming an &#147;interested
    shareholder.&#148; The Oregon Business Combination Act generally
    provides that the corporation and the interested shareholder, or
    any affiliated entity of the interested shareholder, may not
    engage in business combination transactions for
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    3
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    three years following the date the person acquired the shares.
    Business combination transactions for this purpose include:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    a merger or plan of exchange;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    any sale, lease, mortgage or other disposition of the assets of
    the corporation where the assets have an aggregate market value
    equal to 10% or more of the aggregate market value of the
    corporation&#146;s assets or outstanding capital stock; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    transactions that result in the issuance or transfer of capital
    stock of the corporation to the interested shareholder.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    These business combination restrictions do not apply if:
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the board of directors approves the business combination or the
    transaction that resulted in the shareholder acquiring the
    shares before the acquiring shareholder acquires 15% or more of
    the corporation&#146;s voting stock;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    as a result of the transaction in which the person acquired the
    shares, the acquiring shareholder became an interested
    shareholder and owner of at least 85% of the outstanding voting
    stock of the corporation, disregarding shares owned by employee
    directors and shares owned by certain employee benefits plans; or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the board of directors and the holders of at least two-thirds of
    the outstanding voting stock of the corporation at an annual or
    special meeting of shareholders, disregarding shares owned by
    the interested shareholder, approve the business combination
    after the acquiring shareholder acquires 15% or more of the
    corporation&#146;s voting stock.
</TD>
</TR>

</TABLE>
<A name='119'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Description of
    first mortgage bonds</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>The first mortgage bonds will be issued under and secured by
    the Indenture of Mortgage and Deed of Trust, dated July&#160;1,
    1945, between Portland General Electric Company and HSBC Bank
    USA, National Association as successor to The Marine Midland
    Trust&#160;Company of New York, as trustee, as supplemented and
    amended by supplemental indentures. We refer to the original
    mortgage, as so supplemented and amended, as the Mortgage. The
    first mortgage bonds that we may issue under the Mortgage are
    referred to as the bonds.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <I>The following description is a summary of material provisions
    of the Mortgage. The summary is not complete. We have filed the
    original mortgage and each of the supplemental indentures
    amending the mortgage and the form of a new supplemental
    indenture for the issuance of new bonds (referred to in this
    prospectus as the supplemental indenture) as exhibits to the
    registration statement of which this prospectus is a part. You
    should read the Mortgage, the supplemental indentures and the
    form of new supplemental indenture because those documents, and
    not this description, define your rights as a holder of the
    bonds.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Secured
    obligations</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The bonds when issued will be secured, equally and ratably with
    all of the bonds now outstanding or hereafter issued under the
    Mortgage, by a first lien on substantially all of our now owned
    or hereafter acquired property (except cash, securities,
    contracts and accounts receivable, motor vehicles, materials and
    supplies, fuel, certain minerals and mineral rights and
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    4
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    certain other assets) subject, however, to certain permitted
    encumbrances and to various exceptions, reservations,
    reversions, easements and minor irregularities and deficiencies
    in title which will not interfere with the proper operation and
    development of the mortgaged property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Mortgage permits the acquisition of property subject to
    prior liens. However, no property subject to prior liens (other
    than purchase money liens) may be acquired (a)&#160;if at the
    date the property is acquired the principal amount of
    indebtedness secured by prior liens, together with all of our
    other prior lien indebtedness, is greater than 10% of the
    aggregate principal amount of debt securities outstanding under
    the Mortgage, or (b)&#160;if at the date the property is
    acquired the principal amount of indebtedness secured by prior
    liens is greater than 60% of the cost of such property to us, or
    (c)&#160;in certain cases if the property had been used by
    another entity in a business similar to ours, unless the net
    earnings of such property meet certain tests.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The term &#147;bondable public utility property,&#148; as
    defined in the Mortgage, means specified types of tangible
    property, including property in the process of construction that
    is owned or may be acquired by us and subject to the lien of the
    Mortgage, which is located in the States of Oregon, Washington,
    California, Arizona, New Mexico, Idaho, Montana, Wyoming, Utah,
    Nevada and Alaska.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">We have
    covenanted, among other things,</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    to not issue debt securities under the Mortgage in any manner
    other than in accordance with the Mortgage;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    except as permitted by the Mortgage, to keep the Mortgage a
    first priority lien on the property subject to it; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    except as permitted by the Mortgage, to not suffer any act or
    thing whereby all of the properties subject to it might or could
    be impaired.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Mortgage does not contain any provisions that afford holders
    of bonds special protection in the event of a highly leveraged
    transaction by us; however the bonds would continue to be
    entitled to the benefit of a first priority lien on the property
    subject to the Mortgage as described above. Any special
    provisions applicable to the bonds will be set forth in a
    prospectus supplement with respect to the bonds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Redemption and
    purchase of bonds</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    A prospectus supplement will disclose any provisions for the
    redemption or purchase of any particular series of bonds. Under
    the Mortgage, the proceeds of the sale or other disposition of
    substantially all of our electric properties in Portland, Oregon
    must be applied only to the retirement of bonds. Cash deposited
    under any provision of the Mortgage (with certain exceptions)
    may be applied to the purchase of the bonds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Sinking
    fund&#160;provisions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We may establish a sinking fund for the benefit of a particular
    series of bonds. If a sinking fund is established we will be
    required to deposit with the trustee at certain specified times
    sufficient cash to redeem a percentage of or the whole series.
    The prospectus supplement with respect to that series will state
    the price or prices at which, and the terms and conditions upon
    which, the
</DIV>

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    <BR>
    5
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    bonds will be redeemed. The prospectus supplement will also set
    forth the percentage of securities of the series to be redeemed.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Replacement
    fund</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If the amount of depreciation upon bondable public utility
    property (as defined above) exceeds property additions in any
    year, we will pay the excess to the trustee on May 1 of the
    following year, by either payments in cash or by delivery of
    bonds. We will take credit against the amount to be paid for
    property additions acquired or constructed by us from
    March&#160;31, 1945 to the end of the calendar year for which
    the payment is due. We will not, however, take credit for
    property additions or available additions that have been
    previously made the basis for credit under the Mortgage or any
    other replacement fund. We may, at our election, credit against
    the replacement fund amount (1)&#160;available retirements of
    bonds, (2)&#160;certain expenditures on bondable public utility
    property subject to prior lien and (3)&#160;certain retirements
    of prior lien indebtedness. If those credits at any time exceed
    the replacement fund requirement, we may withdraw cash or bonds
    held by the trustee in the replacement fund. We may also
    reinstate available retirements of bonds that we previously took
    as credit against any replacement fund requirement. Cash
    deposited in the replacement fund may, at our option, be applied
    to the redemption or purchase of bonds. Those redemptions would
    be at the then applicable regular redemption prices.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Minimum provision
    for depreciation</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the Mortgage there is a &#147;minimum provision for
    depreciation&#148; of bondable public utility property. The
    aggregate amount of the minimum provision for depreciation of
    bondable public utility property for any period after
    March&#160;31, 1945 is $35,023,487.50 plus an amount for each
    calendar year or fraction of a year after December&#160;31, 1966
    equal to the greater of (1)&#160;2% of depreciable bondable
    public utility property, as shown by our books as of January 1
    of that year, as to which we were required to make
    appropriations to a reserve for depreciation or obsolescence or
    (2)&#160;the amount we actually appropriated in respect of the
    property to a reserve for depreciation or obsolescence, in
    either case less an amount equal to the aggregate of
    (a)&#160;the amount of any property additions which we made the
    basis for a sinking fund credit during the calendar year, and
    (b)&#160;166<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the principal amount of any bonds of any series which we
    credited against any sinking fund payment or which we redeemed
    in anticipation of, or out of moneys paid to the trustee on
    account of, any sinking fund payment during the calendar year.
    The property additions and bonds referred to in (a)&#160;and
    (b)&#160;above become disqualified from being made the basis of
    the authentication and delivery of bonds or any other further
    action or credit under the Mortgage. In addition, the minimum
    provision for depreciation shall also include (i)&#160;the
    amount of any property additions referred to in (a)&#160;above
    which after December&#160;31, 1966 were made the basis for a
    sinking fund credit pursuant to the provisions of a sinking fund
    for bonds of any series, and thereafter became &#147;available
    additions&#148; as a result of the fact that all bonds of such
    series ceased to be outstanding, and
    (ii)&#160;166<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of the principal amount of bonds referred to in (b)&#160;above,
    which after December&#160;31, 1966 were credited against any
    sinking fund payment, or were redeemed in anticipation of, or
    out of moneys paid to the trustee on account of, any sinking
    fund payment for bonds of any series, and thereafter became
    available retirements of bonds as a result of the fact that all
    bonds of such series ceased to be outstanding.
</DIV>

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    <BR>
    6
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Issuance of
    additional bonds</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We may issue an unlimited amount of bonds under the Mortgage so
    long as the additional bonds are issued from time to time on the
    basis of any combination of (1)&#160;60% of available property
    additions, (2)&#160;the deposit of cash or (3)&#160;available
    retirements of bonds. With certain exceptions in the case of
    (3)&#160;above, the issuance of bonds is subject to net earnings
    available for interest for 12 consecutive months within the
    preceding 15&#160;months being at least twice the annual
    interest requirements on all bonds to be outstanding and all
    prior lien indebtedness. Cash deposited with the trustee
    pursuant to (2)&#160;above may be (a)&#160;withdrawn in an
    amount equal to 60% of available additions, (b)&#160;withdrawn
    in an amount equal to available retirements of bonds or
    (c)&#160;applied to the purchase or redemption of bonds.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Available additions are determined, at any time, by deducting
    from the aggregate amount of property additions since
    March&#160;31, 1945 (1)&#160;the greater of the aggregate amount
    of retirements since March&#160;31, 1945 or the aggregate amount
    of the minimum provision for depreciation upon bondable public
    utility property not subject to a prior lien since
    March&#160;31, 1945, and (2)&#160;the aggregate of available
    additions theretofore made the basis for action or credit under
    the Mortgage. Property additions taken as a credit against the
    replacement fund requirement are not deemed to be &#147;made the
    basis for action or credit.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Dividend
    restrictions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    So long as any of the offered bonds, or any of the bonds
    authenticated under the Mortgage are outstanding, we will be
    subject to the following restrictions:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    we may not pay or declare dividends (other than stock dividends)
    or other distributions on our common stock, and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    we may not purchase any shares of our capital stock (other than
    in exchange for or from the proceeds of other shares of our
    capital stock),
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    if the aggregate amount distributed or expended after
    December&#160;31, 1944 would exceed the aggregate amount of our
    net income, as adjusted, available for dividends on our common
    stock accumulated after December&#160;31, 1944.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Release and
    substitution of property</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Property subject to the lien of the Mortgage may (subject to
    certain exceptions and limitations) be released only upon the
    substitution of cash, purchase money obligations or certain
    other property or upon the basis of available additions or
    available retirements of bonds.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Modification of
    the mortgage</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Under the Mortgage our rights and obligations and the rights of
    the holder may be modified with the consent of the holders of
    75% in aggregate principal amount of the outstanding bonds,
    including 60% of the bonds of each series affected by the
    modification. No modification of the principal or interest
    payment terms, and no modification reducing the percentage
    required for modifications, is effective against any holder
    without its consent. The Mortgage may also be modified in
    various other respects not inconsistent with the Mortgage and
    which do not adversely affect the interests of the holders of
    bonds.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Defaults and
    notice</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Each of the following will constitute a default:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    failure to pay the principal when due;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    failure to pay interest for 60&#160;days;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    failure to deposit any sinking, replacement or improvement fund
    payment when due;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    certain events in bankruptcy, insolvency or reorganization of
    PGE; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    failure to perform any other covenant in the Mortgage that
    continues for 60&#160;days after being given written notice.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The trustee may withhold notice to the holders of bonds of any
    default (except in payment of principal, interest or any sinking
    or purchase fund installment) if it in good faith determines
    that withholding notice is in the interest of the holders of the
    bonds issued under the Mortgage.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    If an event of default occurs and continues, the trustee or the
    holders of at least 25% in aggregate principal amount of the
    bonds may declare the entire principal and accrued interest due
    and payable immediately. If this happens, subject to certain
    conditions, the holders of a majority of the aggregate principal
    amount of the bonds can annul the declaration.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    No holder of bonds may enforce the lien of the Mortgage, unless
    (i)&#160;it has given the trustee written notice of default,
    (ii)&#160;the holders of 25% of the bonds have requested the
    trustee to act and have offered the trustee reasonable indemnity
    and (iii)&#160;the trustee has failed to act within
    60&#160;days. If they provide this reasonable indemnification,
    the holders of a majority in principal amount of the bonds may
    direct the time, method and place of conducting any proceeding
    or any remedy available to the trustee, or exercising any power
    conferred upon the trustee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Evidence to be
    furnished to the trustee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Compliance with Mortgage provisions is evidenced by the written
    statements of our officers or persons we selected and paid. In
    certain cases, opinions of counsel and certificates of an
    engineer, accountant, appraiser or other expert (who in some
    instances must be independent) must be furnished. Various
    certificates and other papers are required to be filed annually
    and upon the occurrence of certain events, including an annual
    certificate with respect to compliance with the terms of the
    Mortgage and the absence of defaults.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Interest and
    payment</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The prospectus supplement will set forth:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the interest rate or rates or the method of determination of the
    interest rate or rates of the bonds;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the date or dates on which the interest is payable; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    the office or agency in the Borough of Manhattan, City and State
    of New York at which interest will be payable.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Concerning the
    trustee</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    HSBC Bank USA, National Association, formerly The Marine Midland
    Trust&#160;Company of New York, is the trustee under the
    Mortgage. The holders of a majority in principal amount of the
    outstanding bonds issued under the Mortgage may direct the time,
    method and place of conducting any proceeding for exercising any
    remedy available to the trustee, subject to certain exceptions.
    The Mortgage provides that if default occurs (and it is not
    cured), the trustee will be required, in the exercise of its
    power, to use the degree of care of a prudent person in the
    conduct of such person&#146;s own affairs. Subject to these
    provisions, the trustee will be under no obligation to exercise
    any of its rights or powers under the Mortgage at the request of
    any holder of securities issued under the Mortgage, unless that
    holder has offered to the trustee security and indemnity
    satisfactory to it against any loss, liability or expense, and
    then only to the extent required by the terms of the Mortgage.
    The trustee may resign from its duties with respect to the
    Mortgage at any time or may be removed by us. If the trustee
    resigns, is removed from or becomes incapable of acting as
    trustee or a vacancy occurs in the office of the trustee for any
    reason, a successor trustee shall be appointed in accordance
    with the provisions of the Mortgage.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 12pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Governing
    law</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The Mortgage provides that it and any bonds issued thereunder
    are governed by, and construed in accordance with, the laws of
    the State of New York, except to the extent the
    Trust&#160;Indenture Act of 1939 otherwise applies.
</DIV>
<A name='120'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Where you can
    find more information</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We file annual, quarterly and current reports, proxy statements
    and other information with the SEC. Our SEC filings are
    available to the public from the SEC&#146;s web site at
    <I>www.sec.gov</I>. You may also read and copy any document we
    file with the SEC at the SEC&#146;s public reference room
    located at 100&#160;F&#160;Street, N.E., Washington,&#160;D.C.
    20549. Please call the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information regarding the public reference room. In
    addition, our common stock is listed and traded on the New York
    Stock Exchange. You may also inspect the information we file
    with the SEC at the offices of the NYSE at 20&#160;Broad Street,
    New York, New York 10005. Information about us, including our
    SEC filings, is also available through our web site at
    <I>www.portlandgeneral.com</I>. However, information on our web
    site is not incorporated into this prospectus or our other SEC
    filings and is not a part of this prospectus or those filings.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    This prospectus is part of a registration statement filed by us
    with the SEC. The exhibits to our registration statement contain
    the full text of certain contracts and other important documents
    we have summarized in this prospectus. Since these summaries may
    not contain all the information that you may find important in
    deciding whether to purchase the securities we or selling
    shareholders may offer, you should review the full text of these
    documents. The registration statement and the exhibits can be
    obtained from the SEC as indicated above, or from us.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='121'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Incorporation of
    certain documents by reference</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The SEC allows us to &#147;incorporate by reference&#148; the
    information we file with the SEC. This means that we can
    disclose important information to you by referring you to
    another filed document. Any information referred to in this way
    is considered part of this prospectus from the date we file that
    document. Any reports filed by us with the SEC after the date of
    this prospectus and before the date that the offering of the
    securities by means of this prospectus is terminated will
    automatically update and, where applicable, supersede any
    information contained in this prospectus or incorporated by
    reference in this prospectus. Accordingly, we incorporate by
    reference the following documents or information filed with the
    SEC:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2006, which we filed
    with the SEC on March&#160;2, 2007;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2007, which we filed with
    the SEC on May&#160;3, 2007;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K,</FONT>
    which we filed with the SEC on January&#160;23, 2007,
    February&#160;20, 2007, February&#160;28, 2007, March&#160;13,
    2007, April&#160;12, 2007, April&#160;19, 2007, May&#160;22,
    2007 and May&#160;31, 2007;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    The description of our common stock contained in Item&#160;1 of
    our Form <FONT style="white-space: nowrap">8-A</FONT>
    filed with the SEC on March&#160;31, 2006 pursuant to
    Section&#160;12(b) of the Securities Exchange Act of 1934,
    including any amendment filed for the purpose of updating such
    description; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <TD>    &#149;&#160;
</TD>
    <TD align="left">    All documents filed by us in accordance with
    Sections&#160;13(a), 13(c), 14 or 15(d) of the Securities
    Exchange Act of 1934 on or after the date of this prospectus and
    before the termination of an offering under this prospectus,
    other than documents or information deemed furnished and not
    filed in accordance with SEC rules.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    We will provide to each person, including any beneficial owner,
    to whom a copy of this prospectus has been delivered, without
    charge, upon the written or oral request of such person, a copy
    of any or all of the documents which are incorporated by
    reference into this prospectus, other than exhibits to such
    documents, unless such exhibits are specifically incorporated by
    reference into the information that this prospectus
    incorporates. You should direct requests for such copies to:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Portland General Electric Company
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    121 SW Salmon Street
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Portland, Oregon 97204
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Attention: Kristin Stathis, Assistant Treasurer
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Telephone:
    <FONT style="white-space: nowrap">(503)&#160;464-8322</FONT>
</DIV>
<A name='122'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Legal
    matters</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    Unless otherwise specified in a prospectus supplement
    accompanying this prospectus, Douglas R. Nichols, our General
    Counsel, and Skadden, Arps, Slate, Meagher&#160;&#038; Flom LLP,
    Washington,&#160;D.C., will pass upon certain legal matters for
    us in connection with the securities offered by this prospectus.
    As of June&#160;1, 2007, Mr.&#160;Nichols owned no shares of our
    common stock. Pursuant to various stock and employee benefit
    plans, Mr.&#160;Nichols is eligible to purchase and receive
    shares of our common stock and to receive options to purchase
    shares of common stock.
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='123'>
<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">

    <B><FONT style="font-family: Arial, Helvetica">Experts</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    The financial statements and management&#146;s report on the
    effectiveness of internal control over financial reporting
    included in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the fiscal year ended December&#160;31, 2006 which is
    incorporated by reference in this prospectus have been audited
    by Deloitte&#160;&#038; Touche LLP, an independent registered
    public accounting firm, as stated in their reports incorporated
    herein by reference (which reports (1)&#160;express an
    unqualified opinion on the financial statements and financial
    statement schedules and include an explanatory paragraph
    regarding the adoption, on December&#160;31, 2006, of Statement
    of Financial Accounting Standards No.&#160;158, Employers&#146;
    Accounting for Defined Benefit Pension and Other Postretirement
    Plans, (2)&#160;express an unqualified opinion on
    management&#146;s assessment regarding the effectiveness of
    internal control over financial reporting, and (3)&#160;express
    an unqualified opinion on the effectiveness of internal control
    over financial reporting), and have been so included in reliance
    upon the reports of such firm given upon their authority as
    experts in accounting and auditing.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <B>You should rely only on the information incorporated by
    reference or provided in this prospectus supplement or the
    accompanying prospectus. We, the selling shareholder and the
    underwriters have not authorized anyone to provide you with
    different information. You should not assume that the
    information provided in this prospectus supplement, the
    accompanying prospectus, the documents incorporated by reference
    or any other offering material is accurate as of any date other
    than the date on the front of those documents, as applicable.
    The selling shareholder and the underwriters are not making an
    offer to sell these securities in any jurisdiction where the
    offer or sale is not permitted.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: #FFFFFF">
    <BR>
    11
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#tocpage">Table of Contents</A></H5><P>

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