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May 1997

Minutes

News & Views from Your Elected Representatives

  The Oregon Rural Electric Cooperative Association has alerted us to the introduction of HB 2821 mandating retail wheeling of electricity here in Oregon.  As of this writing we are unsure of its chance of passing in the Oregon House of Representatives. This flawed piece of legislation will jeopardize public power and have significant consequences on consumer-owned utilities such as Salem Electric.

Following are some concerns about this bill:

 1. HB 2821 mandates that the state implement retail electricity access, then proposes that we study how to make it work. It puts the cart BEFORE the horse.

 2. HB 2821 allows large energy users a credit against the tax if that business spends its own money on energy conservation equipment. But a homeowner who spends thousands to weatherize his/her home gets NO credit and cannot offset payment of this tax. By the way, industry ALREADY is eligible for a Business Energy Tax Credit. Big business gets double credits for saving energy!

 3. HB 2821 is an attorney's dream! This bill allows anyone, anywhere to sue an electric utility for failure to comply with this bill. Other suppliers of electricity aren't exposed to this frivolous and expensive potential for lawsuits.

 4. HB 2821 creates a legal conundrum. State law prohibits multiple providers of "poles and wires" in a geographic area, creating a legal monopoly for the safe and economic delivery of electricity. Yet, in spite of this "state action," HB 2821 removes all exemptions from anti-trust laws, including any exemption based on "state action." Utilities can be sued for complying with the law!!

 5. HB 2821 acknowledges that "small" customers are LOSERS! The bill defines "core customers" as those who use "less than 1,000 kilowatts that does not have realistic alternatives to buying power from the local utility, even if that customer has the legal right to buy from competitive suppliers." HB 2821 sponsors say ALL customers have a "choice" of electricity suppliers, but they KNOW a small user of electricity won't really get a CHOICE.

 6. HB 2821 gives the Oregon Office of Energy new powers over consumer-owned utilities. This government agency will decide how, and how much to collect in yet ANOTHER new tax on electric meters to finance energy assistance payments. Today, it is envisioned that this tax would only collect about $6 million from Oregon ratepayers. But, if federal funding goes away, the tax could go as high as $20 million statewide. THIS IS A BRAND NEW TAX.

 7. HB 2821 proponents claim this bill is needed to maintain a "reliable, safe and efficient distribution system." The Public Utility Commission ALREADY regulates the safety and reliability of electric distribution systems. The PUC enforces the National Electrical Safety Code and has full police and enforcement powers, including the ability to impose large fines AND take away a utility's certificate to serve an area.

 8. HB 2821 puts Oregon out of step with the rest of the NW states. Idaho is STUDYING electric industry restructuring BEFORE it passes legislation. The legislature in the state of Washington has not adopted a bill and may not this year.

 I encourage cooperative members to contact their elected representatives in the House and Senate to oppose HB 2821.

--  Jeff Anderson, President

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Minutes of the Meeting Held on:

March 25, 1997

Conservation is an issue that concerns staff, the board, and all of us as members of our utility. It remains a vital part of our program to keep our energy costs down. Terry Kelly, Member Services Manager, reported to the board that approximately 25 people from various utilities attended a Heat Pump Training Workshop sponsored by the Northwest Public Power Association (NWPPA), held recently at Salem Electric. A future session will be held for installers to learn of the requirements of the Salem Electric Heat Pump Program to be implemented in the near future.

 Kelly fielded a question asked by board member Anderson regarding who provides the energy audit requested by a customer. Kelly noted that the audit is the responsibility of the provider of the energy for the home's heating system. Salem Electric will do the audit for the homes heated with electricity or wood.

 General Manager Bob Speckman gave the board an overview of meetings he attended the past month at other Oregon cooperative utilities, listing ideas that he wishes to explore, gleaned from other like cooperatives. Speckman and board president Jeff Anderson will be attending legislative conferences in May in Washington, D.C., as well as other cooperative association meetings as the specter of deregulation of the industry looms ever closer. Speckman also asked the board for a time line for a proposed board policy review of the utility. The board agreed to a September deadline, giving the board time to digest the internal policies and procedures now in place.

 Guest Steve Weiss presented an update on the restructuring of the utility industry. He gave the board information on the workings of both the federal and state levels, the talks about general policies, prices of BPA versus the open market, and the hearings now being held regarding various legislative bills before the Oregon session. Weiss discussed briefly the proposed merger of PGE with Enron, with the outcome yet to be determined.

 Because of expressed interest in the use of green power by Salem Electric members following a survey, the utility sent a letter in January 1996 to BPA expressing interest in purchasing seven megawatts of renewable power which would be produced by two wind projects. The two wind projects were to be on-line by October 1996, but according to Roger Kuhlman, Engineering and Operations Manager, these projects have run into problems. Staff is continuing to keep in contact with BPA regarding the status of the renewable projects, but BPA does not expect power to be available until December 1998. It was noted that State Representative Peter Courtney will be the speaker at the annual meeting on May 13 at Salem Electric.

 Director Bonesteele said she hoped Courtney's appearance at the meeting would be well publicized and would generate a good turnout. Rep. Courtney will share with members legislative activities and answer questions.

 Under new business, Bonesteele reminded the board that she had questioned Kuhlman about the cost of moving the overhead service versus the cost of installing underground service on Wallace Road. As a result of her including this discussion in the February "Board Report" she has had some customer contact. Mr. Gerry Bartz, who is working on the Wallace Road Access Committee, is representing other concerned Wallace Road travelers, all of whom are interested in finding a way to put the lines underground.

 It was the consensus of the board that a staff member contact Bartz's committee and other concerned members for an informational meeting where questions could be raised and answered. Members are also invited to Salem Electric board meetings to express their concerns.

 Meeting was adjourned at 8:20 p.m.

 -- Alicia Bonesteele,  Secretary/Treasurer

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