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The Salem
Electric Board of Directors met on November 24 at 7:01 p.m. Board members in
attendance were Jim Dyer, Jeff Anderson, Bill Wolf, Murray McCreary, Alicia
Bonesteele and Curt Culver.
Member Services Report
Member Services Manager Terry Kelly reported that SE
was one of several co-sponsors of the Festival of Lights Holiday Parade. SE is
also sponsoring the Holiday Tree Lighting Ceremony on November 27 at the
Chemeketa Parkade.
Manager's Report
Manager Bob Speckman presented the board with next
year's Board Meeting Calendar. He asked for board approval to change the date
of the annual meeting from May 4 to May 11, 1999. This is done regularly to
avoid a conflict with the NRECA Legislative Rally in Washington D.C. Motion was
made by Anderson, seconded by Bonesteele and carried unanimously to move the
annual meeting to May 11.
Speckman notified the board that SE delivered a
check to the Bonneville Power Administration for the purchase of three
substations. The title transfer is expected to take place by December 1.
Speckman called attention to a letter from the City
of Salem regarding a possible change in the franchise fee that is charged to SE
customers. A committee called the Revenue Task Force is looking at many
alternatives to create more cash flow for the city to offset their budget
shortfall. The proposal would be to increase the franchise fee from the current
3.5% to 5%. Speckman said SE's position, also taken in the past, is that we
don't feel this is appropriate. If the fee does go to 5%, the investor-owned
utilities would be required by the PUC to itemize it on their monthly bill.
Speckman felt that SE's position would be to do likewise. Anderson and Wolf
agreed that SE should itemize the fee on the billings.
In response to a question from Anderson, Operations
Manager Roger Kuhlman stated that approximately 540 customers in Keizer (one
incident) and about 12 to 18 other customers were without power due to the
windstorm on November 23. All services were restored in less than two hours.
The board continues to be impressed with the quality of service provided to SE
customers.
Rate Increase-Wind Power
The staff prepared a recommendation for a rate
increase of approximately 3.5% to cover the costs for the purchase of "green"
power. On November 25, 1997, the board approved the purchase of this power from
the Foote Creek Rim wind power site near Arlington, Wyoming. This represents
about 15% of SE's load. The product will not be delivered until January 1999
due to additional testing. Motion was made by Anderson, seconded by Culver and
carried unanimously to accept the rate increase, effective upon the delivery
date of the wind power.
Budget
Administrative Services Manager Jack Belleque
presented the 1999 budget to the board for approval. The board received the
budget two months prior to the meeting and had an opportunity to examine it and
to ask questions of the staff. Speckman said Towslee, who was absent from the
meeting, called to comment "on the record" on the fine job that staff does each
and every year in preparing such a thoughtful and well constructed budget. A
sentiment this writer wholeheartedly agrees with. They make a director's job
much easier. Motion was made by Anderson, seconded by Bonesteele and carried
unanimously to approve the budget as presented.
Meeting adjourned at 7:59 p.m.
Bill Wolf
Secretary/Treasurer
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