The Bonneville Power Administration will increase the rate it charges its utility customers, including Salem Electric, by about 4% effective October 1. In keeping with Salem Electric’s philosophy of maintaining rate stability, as opposed to rising and falling every 3 to 6 months as BPA’s rates now do, there will be no increase in our electricity rates this fall.
   Under our current contract with BPA they have the ability to adjust rates based on three cost recovery adjustment clauses (CRACs). Every 6 months they can adjust the "load-based" CRAC and every 12 months the "financial-based" CRAC. The third CRAC is the "safety-net" which can be triggered at anytime that BPA determines it’s financial situation warrants it. BPA may implement this CRAC in April or May.

October 2002