SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549


                                 Form 8-K

                              CURRENT REPORT


                  Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934


     Date of Report (Date of earliest event reported) August 23, 1996



                        Registrant; State of Incorporation;  IRS Employer
COMMISSION FILE NUMBER  ADDRESS; AND TELEPHONE NUMBER        IDENTIFICATION NO.

1-5532                  PORTLAND GENERAL CORPORATION         93-0909442
                        (an Oregon Corporation)
                        121 SW Salmon Street
                        Portland, Oregon 97204
                        (503) 464-8820




            121 S.W. SALMON STREET, PORTLAND, OREGON     97204

            (Address of principal executive offices)  (zip code)

     Registrant's telephone number, including area code 503-464-8820


                                       1
                                    

 ITEM 5.               OTHER EVENTS

 LITIGATION  SETTLEMENT  - On August 23, 1996 Portland General Corporation and
 its wholly owned subsidiary  Portland  General  Holdings  Inc.  (collectively
 referred to as Portland General) entered into a settlement with the Bonneville
 Pacific  Corporation's  (Bonneville)  bankruptcy trustee (Trustee) pursuant to
 which the Trustee releases all claims asserted  in a 1992 legal action against
 Portland General and certain of its past and present  officers  and directors.
 For further information regarding the Trustee's claim against Portland General
 see Portland General's report on Form 10-Q for the period ended June 30,1996.

 Pursuant to the settlement, Bonneville and its estate will release  all claims
  and causes of action, including those asserted in the Trustee's civil  action
 against  Portland  General  and its current and former officers and directors.
  In exchange,  Portland General  will  release  any  and  all  claims  against
 Bonneville,  its  estate  and related entities and individuals relating to its
 equity investment in and loans to Bonneville except that Portland General will
 retain ownership of 2 million  shares of common stock of Bonneville.  Portland
 General will surrender ownership  of  approximately  7.8 million shares of the
 common stock of Bonneville and will withdraw with prejudice  its  filed  claim
  against Bonneville.  In late 1991, Portland General fully provided for losses
 related  to  its equity investment in and loans to Bonneville.  The settlement
 will not result  in  any  impact on Portland General's  results of operations.
 The settlement is conditioned  upon  approval  by  the  United States District
 Court and by the United States Bankruptcy Court.

  Portland  General will pursue recovery of certain litigation  and  settlement
 costs from its  Director  and  Officer  liability  carrier.  Any such recovery
 would be recognized in income during the periods received.    Portland General
  will  continue  to  prosecute its case against Deloitte & Touche and  certain
  other  parties  associated   with  Bonneville  Pacific.   Portland  General's
 complaint seeking approximately  $228 million in damages in the Third Judicial
  District  Court  for  Salt Lake County  (Utah)  alleges  that  it  relied  on
 fraudulent and negligent statements and omissions by Deliotte & Touche and the
 other defendants when it  acquired  a  46%  interest  in  and  made  loans  to
 Bonneville Pacific starting in September 1990.


                                Signatures


  Pursuant  to  the  requirements  of  the Securities Exchange Act of 1934, the
 registrants have duly caused this report  to  be signed on their behalf by the
 undersigned hereunto duly authorized.


                                 Portland General Corporation




 August 28, 1996                  By  /S/ JOSEPH E. FELTZ
                                         Joseph E. Feltz
                                       Assistant Controller
                                       Assistant Treasurer


                                       2