 More
on Restructuring of the Electrical Industry
There is an old saying: "When it sounds too good to
be true it probably is." This can certainly apply to many of the grand
statements coming from such organizations as PGE/Enron and their associates
about the savings residential and small business would get under restructuring.
There are promises of lower rates, great service, great choices in product, and
on and on. We need to keep these statements and promises on the same level as
campaign promises from political candidates. The individual often will see few
of the great benefits promised from the campaign trail. This is likely to be
true about the claims for benefits from restructuring the electric industry.
Many of the promises may not be delivered or may not be beneficial to
Oregonians. Restructuring is a very complex subject. So be prepared to examine
promotional literature and advertisements with a great deal of skepticism.
In all probability the 1999 Oregon Legislature will
again take up the subject of restructuring. I urge all of you to watch
carefully any legislation that is proposed. Most important is for you to voice
your opinion to your legislators. The most important test will be if it really
will be beneficial to Oregon's residential and small business customers and not
primarily large industry.
|
"The most important test will be if it really
will be beneficial to Oregon's residential and small business customers."
|
An organization called "Americans for Affordable
Electricity" is a huge, well funded lobby group. They will spend millions to
spread their view that deregulation/ restructuring of the electrical industry
will be beneficial by lowering rates. We in the Northwest now enjoy rates among
the lowest in the United States. Cooperatives in most cases provide rates lower
than the independently-owned utilities. One argument for restructuring from
this group is that it will "make customers a priority instead of share
holders." As a cooperative member you already enjoy that position. PGE/Enron
has run a very short-term pilot program. One of our larger customers, which
also receives service from PGE, told us they purchased power from a different
utility under the pilot. They saved a little money over the PGE rate, but still
paid more than they do for power from us. This pilot program is not over and it
was in areas carefully selected by the company. PGE/Enron maintains that
restructuring will open the door to innovative options. They will try and use
access to "green power" and other products as a sales pitch. Most of Salem
Electric's power is from hydro and we have agreed to purchase an equivalent of
the remaining power from a wind resource. As to those other services that may
be offered from electric providers - I certainly am not impressed by the wide
range of products and services offered after deregulation/restructuring of the
telephone industry nor have I experienced the great savings that were promised.
At least not in local calls, which is the most common phone usage.
Who can you believe? I believe it is your own
utility where you, as a member, have a voice. Salem Electric, as a cooperative,
is owned by you. The motivation of a cooperative utility is to serve the rate
paying member not to make a profit for investors. Salem Electric's manager, Bob
Speckman, is a member of Oregon Rural Electric Cooperative Association's
(ORECA) restructuring task force. I am an alternate. We have attended all of
the meetings to date. The subject of restructuring is being examined carefully.
There are different opinions even among the assembled members representing all
17 of Oregon's electric cooperatives. But after examination of all the issues
and educating ourselves we came together on most major issues. There will be a
position paper and educational material available in the near future. These
will be shared with you, our members, when they are finalized.
Evaluate all information critically on this issue
and then let your views be known to your legislators. The board and management
of Salem Electric will be glad to talk with you about restructuring and promise
to be as reliable in our discussions as we are in providing your electricity.
--Jim Dyer, Board President
TOP
|