Portland General Electric Company

Original Volume No. 1

Effective Date: 12/03/2003, Docket: RP04- 48-000, Status: Effective

Original Sheet No. 48 Original Sheet No. 48 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

11. SERVICE AGREEMENT AND CREDITWORTHINESS

11.1 Form of Agreement. Transporter and Shipper shall execute a Service

Agreement covering the service contemplated. The executed Service

Agreement, together with the General Terms and Conditions and applicable

Rate Schedule shall constitute the entire agreement between the parties

for service provided therein and shall be modified only in writing.

11.2 Creditworthiness. A Shipper seeking service from Transporter under

Rate Schedule FT or IT must provide the following:

(a) A copy of Shipper’s most recent audited financial statements and

unaudited quarterly statements certified by the Chief Financial Officer

of the Shipper. The Certificate shall state that such unaudited

financial statements fairly represent the financial condition and the

results of the operations of the Shipper for the period indicated and

are prepared in accordance with generally accepted accounting principles.

(b) Such other documentation as the Transporter shall reasonably request

in connection with this service contemplated.

if applicable.

In the event Shipper cannot provide the information above, Shipper

shall provide that information for its parent company.

(d) As security for the payment of amounts due, Shipper agrees to provide

the following

(i) In the event Shipper maintains a long-term, senior, unsecured debt

rating, not supported by third party credit enhancement, of at least

"BBB" by Standard & Poor’s or "Baa2" by Moody's, without negative

implications, no additional security is required.

(ii) In the event Shipper maintains a long-term, senior, unsecured debt

rating, not supported by third party credit enhancement, less than "BBB"

by Standard & Poor’s or "Baa2" by Moody’s, has negative implications, or

does not maintain a credit rating, it agrees to provide:

(1) one or more irrevocable, transferable, standby letters of

credit from a major U.S. commercial bank or a foreign bank with a U.S.

branch office. Such bank shall have a credit rating of at least "A+"

from Standard & Poor’s or "A1" from Moody's and $10 Billion in assets.

The letter of credit shall be in favor of and in a form acceptable to

Transporter; or

(2) a guaranty in favor of and in a form acceptable to

Transporter from an entity acceptable to Transporter; or

(3) cash prepayment in an amount equal to the cost of the

service provided.