Portland General Electric Company (NYSE:POR)

CAPS Rating: 4 out of 5

A single, integrated electric utility engaged in the generation, purchase, transmission, distribution, and retail sale of electricity in the State of Oregon, as well as the wholesale sale of electricity and natural gas in the western states and Canada.


Player Avatar MarionContrarian (< 20) Submitted: 11/4/2008 3:18:13 PM : Underperform Start Price: $19.39 POR Score: -5.69

POR has been ranging between 18.5 and 21 since early October, with the March low of 21.22 now forming resistance. I expect that POR will test the 16.84 low of October 17th.Revenue decreased while expenses increased in the most recent quarter.Taking a look at the company's latest 10-Q reveals the following two concerns:1. ACCESS TO CAPITAL IMPAIRED. "The Company expects to issue both debt and equity in late 2008 or in 2009 in order to fund capital projects. In October 2008, the general economic and capital market conditions in the United States and other parts of the world have deteriorated significantly and have adversely affected access to capital and increased the cost of capital. If these conditions continue or become worse, the Company’s future cost of debt and equity capital and the Company’s future access to capital markets could be adversely affected.2. UNDERFUNDED PENSION LIABILITY. The fair market value of investments held by the pension trust has recently decreased substantially. Pursuant to the Pension Protection Act of 2006, PGE is legally obligated to maintain a certain funding level with respect to the pension plan. The required funding level is determined annually based on certain actuarial assumptions and the valuation of the assets held by the pension trust. If market conditions do not improve, PGE may be required to fund an unfunded position of the pension plan in the near term.Authorized Increases in utility rates may be insufficient to offset these risks. The stock has been consolidating in the

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