September 1998

Minutes

News & Views from Your Elected Representatives

I have been appointed to fill a vacant position on the Salem Electric Board of Directors with a term that will run through the year 2001. As a board member, I will be representing the interests of all Salem Electric members.

MSA manufactures silicon wafers, the base material used by electronics manufacturers on which they build electronic circuits. Silicon wafers manufactured by MSA, are used by a variety of electronics manufacturers for products that you might find in anything from the printer on your desk to engine controls on your automobile.

Our company moved to Salem, Oregon, and started operations in 1982 as Siltec Corporation, in the Cherry Avenue Industrial Park. We were purchased by Mitsubishi Materials Corporation in 1986. Our name was changed from Siltec Corporation to Mitsubishi Silicon America in 1996, with the formal opening ceremonies of our newest plant, located at the Fairview Industrial Park.

Since coming to Salem, we have grown to be Salem Electric's largest power customer and Salem's largest industrial employer, employing approximately 1,100 people. MSA is active in Salem, not only as an employer, but as a solid corporate citizen, providing leadership, volunteers, and monetary contributions to such fine organizations as United Way, Salem Area Chamber of Commerce, Gilbert House Children's Museum, Salem Boys and Girls Club, Shangri-la, Salem-Keizer public schools, Oregon School for the Deaf, and many more.

Another area in which MSA asserts its leadership in the community is environmental issues. Since my joining the company in 1988, we have implemented several energy conservation projects. MSA has participated in conservation programs sponsored by both Salem Electric and the Bonneville Power Administration, that include waste heat recovery from cooling water, installation of energy efficient lighting systems, and construction of new buildings according to the criteria of the Energy Smart Design program. MSA has also recently become the third company in Oregon to receive ISO14000 certification, an international standard for environmental management.

I could continue for some time about the company that I represent, but I believe that space must be limited, so I will take some space to introduce myself.

I am originally from Indiana, coming to Oregon in 1988. I have an Associates Degree in Electrical Engineering Technology and a Bachelors Degree in Interdisciplinary Engineering from Purdue University. I also have a Masters of Business Administration from the University of Chicago. I am a registered Professional Engineer in both Indiana and Oregon.

Much of my work experience has been in the power industry, in the industrial sector. I worked 17 years for a large mid-west corporation in the division that produced and distributed electrical power. The electric power generation and distribution at that company was similar in size to that of a small community, in fact, our load was larger than that of all of Salem Electric. My duties and experience were broad, from general laborer to engineer, from maintenance supervisor to power plant operations supervisor. Prior to joining Siltec in 1988, I also had experience as a consulting engineer in the design of alternative fuel power plants and in construction management.

In addition to my career and family, I try to give some of my time back to the community. I have recently been selected to be on the board of directors of the Salem Area Chamber of Commerce, after completing the two-year program, Leadership Salem, in which I learned much about our great community. At MSA, I am a member of the RCC (Responsible Citizens Committee), a volunteer group of employees who coordinate MSA contributions of both volunteer time and money to important organizations and causes within the community.

Finally, just a little personal information. I am both a father and grandfather, with two daughters and two grandsons! One of my daughters lives in Beaverton, and the other lives in Orlando, Florida, with my two grandsons. Activities that take up my free time include golf and dancing.

For several years now I have had the distinct pleasure of working with the fine staff of Salem Electric as we have grown together. Whether it has been working with the staff planning for maintenance or construction projects, or listening and commenting to the board at board meetings, I have always been impressed with the employees, the leadership, you the owners of Salem Electric, and the quality and integrity with which this organization is run. I look forward to becoming a more active participant with this organization as your newest board member.

If you have any questions or comments, please feel free to contact me at: (503) 315-6726 (work) or (503) 391-2788 (home).

-- Murray McCreary, Director

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Minutes of the Meeting Held on:

July 28, 1998

The Salem Electric Board of Directors met on July 28 at 7:01 p.m. Board members in attendance were Jim Dyer, Nancy Towslee, Bill Wolf, Murray McCreary, Alicia Bonesteele and Curt Culver (via telephone conference call).

This was Murray McCreary's first meeting as a member of the board, but it is certainly not the first time we have seen him here. Murray was selected by the board to fill the vacant position left by Dennis Koho. As the Technical Services Associate Director at Mitsubishi Silicon America, Murray has spent many nights attending board meetings at Salem Electric. He has had a genuine interest in SE's concerns and we are very fortunate to have him with us.

The financial and operations reports were removed from the consent calendar. This is customary whenever a new director joins the board so that they can be explained in detail. McCreary and Dyer questioned the necessity of several reports. After some discussion, motions were passed unanimously to terminate the detailed listing of residential accounts written off and the service termination report.

Manager Bob Speckman presented the board with a life insurance benefit survey comparing SE with other Oregon cooperatives. The board felt that the non-union employees' life insurance amount was indeed too low. Motion was made by Towslee, seconded by McCreary and carried unanimously to increase the life insurance benefit as recommended.

Salem Electric has received Safety Accreditation from NRECA since 1985. This is granted after a review is conducted every three years. Receiving the accreditation results in lower insurance rates. Part of this process requires that the board participate in the cooperative's safety and loss control program. In 1994, the board of directors adopted a resolution establishing a safety policy. There was discussion about the safety program. Wolf suggested that the manager present the board with an annual report on the program. A motion was made by Culver and seconded by Towslee to adopt a resolution to reaffirm Salem Electric's safety policy. Motion carried unanimously.

Meeting was adjourned at 8:40 p.m.

-- Bill Wolf, Secretary/Treasurer

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