February 1997

Minutes

News & Views from Your Elected Representatives

  Resource Management International, Inc. (RMI) has concluded what many of us have suspected for some time...that public power is more reliable than  private investor-owned utilities. Public power includes consumer-owned electric cooperatives, public utility districts, and municipal-owned systems.

The RMI study showed an annual average of disruption in public power at 77.5 minutes per customer per year as compared to the investor-owned utilities at 163 minutes, or more than double, in the same period of time.

 The survey used the System Average Interruption Duration Index (SAIDI) figures (expressed in average minutes of outage per customer). The survey represented a four-year period ending in 1994 involving over 100 public power utilities and 30 investor-owned electric systems. Salem Electric during this same period of time averaged 12.54 minutes of interruption. Furthermore, if you exclude externally-caused interruptions, from such things as cars hitting poles and other uncontrollable events, Salem Electric's outage time would be 2.82 minutes over the same period.

 Salem Electric has dedicated itself to insuring the highest level of reliability through aggressive operations and maintenance programs, i.e., power pole replacement, tree trimming, etc.

 Our reliability of service and low cost were major factors for one company's decision to locate their facility on our system.

 Recent events at the Oregon legislature concerning retail wheeling could compromise consumer-owned systems' abilities to ensure low cost and reliable service.

 With large for-profit corporations lobbying to break up territorial allocations and allow large consumers to leave the system, our ability to maintain the quality of service and low price could be challenged, as system costs would be spread over fewer members.

 The Oregon Rural Electric Cooperative Association representing the 17 consumer-owned cooperatives in Oregon will monitor retail wheeling legislation and keep Salem Electric informed.

 We will update members through this publication on the ongoing status of retail wheeling.

--  Jeff Anderson, President

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Minutes of the Meeting Held on:

December l7, 1996

The Board of Directors convened at 7:00 p.m. December 17, a week earlier than the regularly scheduled fourth Tuesday, due to the Christmas holiday. Manager Jere Overs called attention to the updated board meeting calendar for 1997, noting that the Annual Meeting has been moved from May 6 to May 13 and the December meeting from December 23 to December 16.

 Engineering & Operations Manager Roger Kuhlman advised the board that the off-peak rate for Salem Electric's general service customers, previously in effect, is no longer necessary as Bonneville has changed its billing procedures. The board voted in support of this change.

 Administrative Services Manager Jack Belleque asked the board to declare forfeiture of 1971 unclaimed capital credits. The appropriate advertising, required by law, has been completed. The board voted unanimously to authorize the forfeiture. This procedure is necessary to prevent the state from claiming the funds under the escheat laws.

 New business items on the agenda gave the board an opportunity to glean the knowledge of our outgoing General Manager Jere Overs, at this, his final board meeting (of approximately 400 meetings attended in his 29 years as manager). He left us with some food for thought for the months and years ahead.

 1. He agrees with the board's decision regarding retail wheeling and that the directors are right in trying to do what they can to influence the outcome down the road. He said to be optimistic about opportunities and be aware of a menu of options. He complimented board member Nancy Towslee on her comprehensive article on retail wheeling in "The Board Report".

 2. Overs suggested that the board be thinking about their evaluation of, and relationship with, the new general manager, formalizing an evaluation procedure. (The chair appointed a subcommittee to work on a procedure.) Overs was asked for input to assist this subcommittee. He agreed to do so.

 3. Overs reminded the board that the biggest problems the cooperative has had over the years have been with the Bonneville Power Administration, such as getting involved with WPPSS. On a positive note, he said the cooperative has faced many obstacles over the years and will continue to do so and survive. Overs also remarked that he will continue to receive all industry-related material and will stay up-to-date on the issues.

 On January 1, Bob Speckman will assume the duties of general manager. He said, having worked with Overs for the past 15 years he plans to use the assets of Overs' knowledge and connections. Director Koho wanted it known that he is thrilled to have Speckman on board as the new manager. The board concurred.

 The board scheduled a luncheon meeting with Senator Gene Derfler on December 20 to review the electrical industry concerns regarding retail wheeling, with views from both sides of the table.

 The December meeting adjourned at 7:47 p.m.

 -- Alicia Bonesteele, Secretary/Treasurer

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