 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.
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"The most important test will be if it really
will be beneficial to Oregon's residential and small business customers."
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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
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