Income is a big part of investors' returns. Stocks, mutual funds and fixed income ideas in this column are featured because they are relatively solid in their ability to pay dividends or interest. We're giving income investors a resource to start their research for investments that give better yields with lower risk.

Earnings were hit hard in 2008, going from $2.33 in '07 to $1.71. For 2009, analysts think the company finished the year with $1.36. Next year, they see $1.58. Fourth quarter earnings are due out shortly (year ends December 31). Forecasts are for 19 cents a share, down from 32 cents a year ago. That forecast is a consensus of 9 analysts which show a range of estimates of negative 5 cents to a positive 31 cents. That shows how diverse the opinion is for POR.

The company will file for a rate change shortly. Its return on equity will most likely be between 7% and 8% for this year. Its allowed to make 10% return on equity. The reason for the shortfall: a slow economy. Electric sales are below forecasted levels while operating and maintenance costs are increasing.

In 2009, there were some extraordinary events that hurt the bottom line. One of them was the extended outages at 2 coal-fired plants. Those are now back on-line and fully operational. The other was a $5 million aftertax charge from a hydro project. That hit will not be recovered in rates but may be diminished by payments from insurance or other companies involved in the project.

The company has a large coal-fired plant it needs to fix or shut. To meet the new, stricter environmental guidelines requires expenditures of between $520 million and $560 million. There's a short term fix of $40 million the company has proposed that will meet environmental compliance requirements. But eventually, the plant will either need to be closed or change to another fuel source.

Portland is expanding its alternative energy sources. Its Biglow Canyon windfarm will add a third phase, generating an additional 175 megawatts and cost about $426 million. That should deliver electricity by the third quarter of this year. The utility is installing a more efficient metering system at a cost of $130 million to $135 million which should be done by the end of the year. Projected projects include more wind capacity and gas base-load and peaking plants as well as a new transmission line.

More numbers: Market Cap is $1.41 billion. Trailing P/E is 12.24. Forward P/E is 11.90. Price to sales ratio is .80. Price to book is .91. Book Value is $20.67. Operating margin for the last 12 months was 13.12%. Profit margin was 6.05%. Return on equity was 7.36%. Total cash is $46 million or 61 cents a share. Total debt is $1.59 billion. Current ratio is 1.02. Beta is a very defensive .76. There are 75.19 million shares outstanding. Insiders own 4.9% of the stock. Institutions have 84.30%.

Income investors should find this stock of interest, especially if they're looking for a defensive investment. The stock traded in a rather narrow range for much of 2009 while the rest of the market showed quite a bit of volatility. There's nothing here that will spark a run up in the stock, but there's nothing evident that suggests weakness and cause for concern. For some investors that should make this stock very attractive.

- Company Web site: www.portlandgeneral.com