Good day, everyone, and welcome to the Portland General Electric third quarter 2008 conference call. Today is Thursday, October 30, 2008 and this call is being recorded. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer period. (Operator instructions) For opening remarks, I would like to turn the conference call over to Portland General Electric Director of Investor Relations Mr. Bill Valach. Please go ahead, sir.

Thank you, Rachel, and good afternoon, everyone. We are very pleased that you are able to participate with us today. Before we begin our discussion this afternoon, I’d like to make our customary statements regarding Portland General Electric’s written and oral disclosures and commentary. There will be statements in this call that are not based on historical fact, and as such, constitute forward-looking statements under current law. These statements are subject to factors that may cause actual results to differ materially from the forward-looking statements made today. For a description of some of the factors that may occur that could cause such differences, the company requests that you read our most recent Form 10-K and Form 10-Q. The Form 10-Q for the third quarter ending September 30, 2008 is available at portlandgeneral.com. The company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise. And these Safe Harbor statements should be incorporated as part of any transcript of this call. Portland General Electric’s third quarter 2008 earnings were released before the market opened today, and the release is available at portlandgeneral.com. With this release, PGE announced earnings of zero for the third quarter ending September 30th, 2008 compared to $20 million or $0.32 per diluted share for the third quarter ending September 30th, 2007. With me today are Peggy Fowler, CEO and President; and, Jim Piro, Executive Vice President of Finance, CFO, and Treasurer. Peggy will begin the call with an overview. Jim will then discuss in more detail our third quarter results. And then, we’ll open the call out for questions. And so it’s my pleasure to turn the call over to Peggy.

Thank you, Bill. Good afternoon, and thank you for joining us today. I know that the last several months have been very busy for those of you in the financial industry and we do appreciate your time. Before we begin reviewing Portland General Electric’s third quarter earnings, I want to let you know how the credit crunch and economic downturn are impacting PGE. Like all companies, we are closely monitoring developments in the financial market so we can respond appropriately. The availability of credit is important for funding our capital expenditure program, and ultimately, serving our customers with reliable and safe electricity. At this time, we believe we’ll have adequate access to capital for 2009 and 2010. Jim will talk more about that later in the call, but I wanted to mention it upfront as liquidity and access to capital is on everyone’s mind. I want to also say congratulations to Jim Piro. As you may have read, the PGE Board of Directors has appointed Jim as the next CEO and President of PGE. I will be retiring as CEO on March 1st, 2009. This has been a difficult decision for me, one I’ve contemplated for a while. I’ve deeply enjoy my career at PGE and feel blessed to have worked with such a fine, dedicated group of people over the years, but I know the timing is right. PGE has achieved independence, we’ve put many major issues behind us, we’ve built a solid foundation for growth, and we have a strong executive team in place. I’ve worked with the Board of Directors on a succession plan that allows for continuity of leadership and a seamless transition that allows PGE to build on our successes. I’m very pleased to turn the reigns over to such a capable leader. Jim and…

Thank you, Peggy, and good afternoon, everyone. First, let me say I am extremely honored to be entrusted to lead our dedicated and talented employees who are committed everyday to making PGE a great company. When I become CEO and President, I will continue to advance the strategies that Peggy and our executive team have put in place. My co-workers and I will continue to focus on delivering value to our customers, our community, and our shareholders by providing safe, reliable, and reasonably priced power. Peggy is an amazing leader and a true friend. I am pleased she will continue to actively participate in PGE’s strategy as part of the Board of Directors. Third quarter operating results were solid, excluding the impact related to the Trojan refund order. PGE’s net income for the third quarter of 2008 was zero, compared to $20 million or $0.32 per diluted share for the third quarter of 2007. This decrease was primarily due to a $20 million after tax provision related to the Trojan refund order. Also contributing to the decrease was the $7 million after tax impact of an estimate -- of an increase in estimated customer refunds pursuant to Senate Bill 408, primarily due to the Trojan refund order. Third quarter 2007 results were positively impacted by Senate Bill 408 with an after tax gain of approximately $3 million versus a $4 million after tax loss in the third quarter of 2008. PGE also experienced a decrease of $3 million after tax from a decline in the fair market value of non-qualified benefit plan trust assets, with a $500,000 after tax gain in the third quarter of 2007 versus a $2.5 million after tax loss in the third quarter of 008. Results were offset by a 3% increase in retail energy deliveries,…

Thanks, Jim. As a well-managed (inaudible) integrated regulated utility, PGE has the opportunity to make strategic investments that meet our customers' needs as well as provide long term earnings and dividend growth for shareholders. PGE’s business strategy builds on our strengths as an excellent operator of business focused on serving our customers within our growing compact operating area. We continue to be a well-capitalized company with a strong balance sheet and investment grade credit rating. During the third quarter, we made solid progress on several key projects. Construction is well under way on Phase two of Biglow Canyon, and our thermal operations remain solid. We continue to work towards an expected commission decision on our 2009 internal rate case by the end of December. Though we are disappointed with the amount of Trojan refund order, we are pleased to moving ahead and resolving this complex issue. And we initiated 2009 earnings guidance of $1.80 to $1.90 per diluted share. As we look to 2009 and beyond, I am confident that under Jim’s steady leadership, PGE will continue to focus on insuring we have the capital needed to grow our business by investing in generation, transmission, and distribution to ensure long term reliability for our customers. I’m looking forward to seeing many of you at the EEI conference in a few weeks. Over the last several years, I’ve certainly enjoyed meeting with you, the financial analysts and investors. Thanks again for joining us today. And now, I’d like to turn it back to Rachel for questions.

Thank you. (Operator instructions) Our first new question comes from Steve Gambuzli [ph]. Your line is open, sir.

Good afternoon.

Hi, Steve.

Hi, Steve.

On the RFP for the wind, I was just wondering, you mentioned you’re going to announce a shortlist at the end of the year and that you’d make final selections in January. It’s for 218 hours megawatts. Would this be generally a capacity that would come online in the 2012 timeframe or might a good chunk of it be pushed off further than that?

Well, it will depend on the projects we select. Certainly, some of us will have the capability of coming in that time frame, and we’ll have to make a big decision around whether or not we buy -- purchase contract on some of these or some of them may end up being ones that we decide to build out ourselves too. But our goal is to do that within that 2012 timeframe.

Okay. And then, you mentioned that there was -- well you discussed the rate case that there was a certain investment you’re making. It’s going to come online in mid 2009 and that it has now been stripped out of the rate case, but you’re going to be able to get a writer treatment for that, is that correct?

That selected water withdrawal, which is part of our Pelton Round Butte re-licensing project. Jim, you want to talk about the details of that?

Because that was such a large project and a very complex construction project, we weren’t sure exactly when it was going to go into service. The parties were uncomfortable just picking a date and saying that’s when it’s going to come into service. So the collective parties agreed that the better treatment would be to track that in separately with a separate writer when it goes into service. And right now, we’re looking at around sometime in the May timeframe for that project to go operational. So we’ve actually just made the filing. It’s on our Web site. You can get all the details. And we’ll start working through that case with the assumption we get a case -- the currency review completed. And the rates could go into effect when that project goes into service.

And staff is onboard with the writer treatment for that?

All the parties have agreed to that process. And hopefully, we can get through the process so that we can get those rates effected when it goes into service.

And finally, in terms of decoupling, is that something that has been -- is there a stipulation on that or is that still one of the items that has not been agreed to with--h?

Yes. Decoupling is still one of the items that has not been agreed to.

Thanks very much.

Thanks, Steve.

(Operator instructions) Our next question comes from Hassan Dosli [ph]. Your line is open.

Good afternoon. Just to add a couple of questions, one, to just confirm the timeline for the Boardman emissions project. As you mentioned, if I read you correctly, if you get all the approvals by 2010, is it okay to assume that you’ll start to spend the meaningful dollars starting in 2011, and then kind of go on to the next six years?

Yes. There’s a long process involved here. And it will depend on what decisions are finally made in accordance with DEQ and EPA, and what we’d finally end up doing. Jim, do you have the schedule there of -- the longer time frame, I think, is what DEQ has currently proposed. If we were able to make progress on our proposal, it could be done in the shorter time frame of investments.

Yes. The complexity is which plan we end up with. The DEQ proposal is a three-phased project where we first put in low-NOx burners by -- I think it’s 2011. And then we put the mercury controls, the scrubbers, and the bag outs in 2014. And then the selected catalytic reduction system would go in by the end of 2017. So it goes in chunks. That’s what the DEQ has proposed. But we’ll have to wait to see what the final proposal is and what is adopted. So you can see it’s depending on -- our proposal, as Peggy mentioned, is much more accelerated. The DEQ proposal is a little bit more paced out in terms of timing. And the SER is a pretty expensive item, which will probably be in the 16, 17 time frame.

Thank you. That’s helpful. Jim, do you have any thoughts as to any cash contributions you guys may need to make for your pension for ‘09?

We, like other pension plans, have taken losses because of the downturn in the equity. There’s the pension protection act, which governs when you need to put capital into the plan. A lot of it will depend on the how planned asset perform over the last couple of months. And there are some discussions underway around maybe relaxing the terms of the pension protection act. We’re looking at it pretty closely. But we’re not ready to disclose yet what the number is because the markets are so volatile and what’s going on. But, currently that’s where we are. By the end of the fourth quarter, we’ll know exactly where we are and whether we’re going to have to fund it, whether the pension protection act is going to get any waiver in their provisions in terms of where we have to get our funding levels. But as you recall, at the end of last year, we were well funded. But we have, like all other pension plans, have taken losses on the equity side. We’re about 70% equity, 30% fixed income.

Got you. Jim, one last question for you on the ’09 earnings range, would you be able to give a little more sensitivity in terms of what did you guys assume in terms of the timing of the equity? I know you guys gave a range of between late ’08 to ’09. In your guidance of $1.80 to $1.90, did you assume an ’08 issuance or an ’09 issuance?

We assumed we issued the equity when we think we needed it in the forecast. Now, when we actually issue is really dependent on the market conditions and when we’re comfortable with the price of our stocks. So I think the important thing is taking advantage of the market when we think our stock price is appropriate. And we’re not going to give you a date at this point. In terms of projections, it’s material to the overall results.

Okay, fair enough. Thank you.

Thank you, and there are no questions in queue at this time.

We’re closed up. We appreciate your interest in Portland General Electric and invite you to join us in a few months when we report on year end 2008. If you’ve got any additional questions, please contact Bill Valach who will be available after this call. Thanks again for joining us today.

This concludes today’s conference call. You may now disconnect.