Enron President: People `Gum Up The Works'

PORTLAND - The president of a huge Texas natural-gas utility awaiting regulatory approval of its proposed merger with Portland General told an industry conference that job cuts are inevitable, worrying Oregon workers.

"You must cut costs ruthlessly by 50 or 60 percent," Enron President Jeffrey Skilling said at an electricity industry conference in Arizona. "Depopulate. Get rid of people. They gum up the works."

Houston-based Enron still is awaiting approval from the Oregon Public Utilities Commission of its planned $3.2 billion merger.

PUC staffers have said they will recommend against the merger because Enron has offered enough in cost savings and rate reductions.

Word of Skilling's comments spurred Ken Harrison, Portland General's chairman and chief executive officer, to send an e-mail to all Portland General employees reassuring them about their job

security.