FEDERAL ENERGY REGULATORY COMMISSION WASHINGTON, D.C. 20426 In Reply Refer To: Office of Enforcement Docket No. PA06-9-000 June 2, 2006 Portland General Electric Company Attention: Ms. Pamela Lesh Compliance Officer and Vice President, Regulatory Affairs 121 SW Salmon Street Portland, OR 97204 Dear Ms. Lesh: The Division of Audits (DA) in the Office of Enforcement (OE) of the Federal Energy Regulatory Commission (Commission) is commencing an audit of Portland General Electric Company (PGE). The audit will determine whether and how PGE complied with: (1) the practices and procedures contained within its open access transmission tariff; (2) the conditions by which the Commission granted market-based rate authority to each respective affiliate; (3) the Standards of Conduct requirements at 18 C.F.R. Parts 358 (2005); (4) the Preservation of Records of Public Utilities and Licensees requirements at 18 C.F.R. Part 125 (2005); and (5) other FERC rules and regulations including, but not limited to, interlocking directorate requirements at 18 C.F.R. Part 45 (2005) and Part 46 (2005). The audit will cover the period from January 1, 2004 through the present. Consistent with the requirements of Section 301, 304 and 311 of the Federal Power Act, 16 U.S.C. §§ 825, 825c, and 825h (2000) and Part 125 of the Commission's regulations, 18 C.F.R. Part 125 (2005), PGE must preserve and retain all existing and future records relevant to this audit. For purposes of this audit, the DA considers the relevant records to be all documents and communications which are in the possession, custody or control of PGE and either (1) relate to any service provided or to be provided by, on behalf of, to or for the benefit of PGE or any facility owned or operated by, on behalf of, or for the benefit of PGE; or (2) are communications, transactions, agreements or arrangements between PGE and any of its affiliates, or between any director, officer, manager, or other employee of PGE, and any director, officer, manager, or other employee of PGE’s affiliates. Docket No. PA06-9-000 Please call us once you have received this audit commencement letter to schedule an entrance conference call to discuss the nature of the audit engagement. The purpose of the call is to: (1) explain the audit process to PGE; (2) address any questions about the audit that PGE may have; (3) provide the audit team an opportunity to clarify basic information about the company, primarily related to PGE’s organizational structure; and (4) establish a date for the initial site visit. To set up this conference call, please call Mr. Brian Harrington, Auditor-in-Charge at (202) 502-8879. Other members of the core audit team include Mr. Joshua Strittmatter, and Ms. Nicole Boykin In addition, if you would like to discuss the audit with DA management at any time during the course of this audit, please contact Mr. Carl Coscia, Branch Chief, at (202) 502-6447, or Mr. Bryan K. Craig, Director, Division of Audits, at (202) 502-8741. Sincerely, Bryan K. Craig, Director Division of Audits Office of Enforcement -2-