The cost of PacifiCorp’s failed attempt to buy Britain’s TheEnergy Group showed up in its first quarter earnings report. Thecompany reported first quarter 1998 earnings on common stock of$104 million, or 35 cents/share, excluding $70 million charge forU.S. job cuts, and a $54 million charge for the terminated bid forEnergy Group. Including these charges, the Company reported a losson common stock of $20 million, or 7 cents/share.

Earnings on common stock were $115 million, or 39 cents/share inthe first quarter. Domestic electric operations earnings were $76million in the quarter, excluding the cost of job cuts. Theunregulated energy trading segment reported losses of $0.5 millionin the quarter as compared to a $1 million loss in the firstquarter of 1997.

Tejas Power, acquired in April 1997, recorded gas tradingrevenues of $318 million, a gross margin of $3 million and a netloss of $0.6 million in 1998. PacifiCorp Power Marketing recordedelectricity trading revenues of $498 million, a related grossmargin of $2 million and break even results in the first quarter of1998 compared to revenues of $39 million, a gross margin of $1million and a net loss of $1 million in 1997.

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