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in. THE NEED TO CHANGE... QUICKLY 



Mr. Chairman, as I said a moment ago, PGE has had a variety of experiences with 

 competition - both good and bad. 



Other representatives of the investor-owned utility industry can share their war stories, but 

 let me say from PGE's experience... it is not easy telling more than 51,000 stockholders that 

 they will not be paid their full dividends, as PGE did in 1989. 



It is not easy completing a year-long internal management review and releasing 10 percent of 

 our employees, as we did in 1991. 



And it is not easy closing your largest generating plant and laying off nearly 1000 highly 

 trained, highly educated and highly paid workers in January of this year - a nuclear plant 

 that comprised 50 percent of the tax base of a rural county and 60 percent of the funding for 

 its schools. 



But to stay competitive you must change. 



It has been said that "God made the world round so that we would never be able to see too 

 far down the road." If that's true, then we have no alternative but to prepare for the future 

 by learning from the past 



If there is anything PGE can share from its past experiences it is this: 



Review your options carefully, but be williiig to make the difficult 

 decisions as quickly and decisively as possible. 



It is our concern that the important changes needed to be made at Bonneville will not be 

 implemented in time to avoid the collision I talked about earlier, or that management will not 



