The Salem Electric Board of Directors met on
August 26 at 7:00 pm; all members were present. We had a spirited meeting with
Wallace Road and green power dominating the evening. Wallace Road At the beginning of each board meeting a period
is provided for questions or statements by members in the audience. Member Bill
Estill took this opportunity to meet with us to state his concerns regarding
the widening of Wallace Road. He urged the board to reconsider undergrounding
the wiring and pledged his capital credits towards that end. Director Koho
pointed out that Salem Electric has never said "no" to undergrounding on this
project. There has been no request to the board for a contribution, but the
board would be willing to consider paying 5% of the project cost as was done
for River Road in Keizer. Director Anderson added that Wallace Road is a state
highway under the control of ODOT. The City of Salem and ODOT should be putting
money into it. Anderson reiterated that the board has never voted and has never
taken any action on this. General Manager Bob Speckman said Salem Electric's
only part is to move the poles, and it would add over $2 million and 18 to 24
months to the project to switch to underground at this time. Director Dyer
thanked Mr. Estill for coming to express his concern. Along a similar vein, the board considered
a request from the City of Keizer for a contribution towards the undergrounding
of wires on Cherry Ave. Keizer is using urban renewal funds to redevelop this
corridor which involves widening to two travel lanes, a center turn lane, bike
lanes, planting strips with extensive landscaping and sidewalks. The project
also includes placing overhead wires underground, which is projected to cost
$1.6 million. Due to his position as Mayor of Keizer, Koho removed himself from
the discussion and sat with the audience. Director Culver stated he was in
favor of the contribution, but was concerned that the perception would be that
we were favoring Keizer over Wallace Road. Anderson favored providing 5% for
any project involving the placement of our wires underground provided the city,
state or other powers in control provide the other 95%. A motion was made by
Anderson, seconded by Wolf and carried unanimously that Salem Electric pay 5%
of the $1.6 million for the Cherry Avenue oject, with a cap of $80,000. After
further discussion, Koho made a motion, seconded by Wolf, that it will be board
policy on urban redevelopment projects, such as the Wallace Road project, to
participate at 5% of the undergrounding costs with a cap, if we are so
requested. Motion carried unanimously. Green Power The board heard a Green Power update from George
Darr, an engineer from BPA in charge of the Foote Creek Wind Project in
Wyoming. Based on member input, the board decided in January 1996 to invest 17%
of our load in green power (about 7 aMW). Darr said that Salem Electric's
previous support went a long way in keeping the program going, and BPA is now
offering a 5-year purchase at 3.5 cents per kilowatt-hour. Anderson was
concerned that the time frame will extend beyond Salem Electric's current
contracts with BPA, and may expose us at a time of uncertainty over retail
wheeling and deregulation. Koho believes that SE's decision was a good one, but
we were led to believe the 5 years would start a lot earlier. Dyer asked what
the board thought about getting green power at 35 mils through 2001. The board
agreed by consensus, and Darr said he thought it could be done. Staff will
prepare a proposed contract for the September meeting. Other Business Member Services Manager Terry Kelly presented a
staff recommendation to place $39,300 of unbudgeted BPA administrative funds
into the conservation loan program reserve. In April 1993, the board approved
the loan program, and increased its budget again in January 1994. At the August
1996 meeting, the board approved the restructured SE conservation program
design which has increased loan program amounts and activity; the balance in
the reserve has been reduced to only $3,000. Salem Electric has never been in
the position of having to turn anyone away from our conservation programs
before. By claiming the $39,300 in administrative funds from BPA and depositing
those funds in the loan account, we can hold on while we pursue plans to work
with local banks to administer and fund the loan program. Motion was made by
Koho, seconded by Anderson and carried unanimously to approve the staff
recommendation. The board also heard from Jean McKinney, a
director of Wasco Electric Co-op and board member of the National Rural
Electric Cooperative Association (NRECA). She said NRECA is a national trade
association representing over 10,000 cooperatives in 46 states. McKinney
described the benefits of being a member and urged SE to consider
participating. Motion was made by Koho and seconded by Anderson that Salem
Electric include NRECA membership dues in the 1998 budget. Motion carried
unanimously. | Board Reports |
October 1997
Minutes of the Meeting Held on:
August 26, 1997
-- Bill
Wolf, Secretary/Treasurer
