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 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 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. 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. 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. Secretary/Treasurer
January 1999
Minutes of the Meeting Held on:
November 24, 1998
Member Services Report
Manager's Report
Rate Increase-Wind Power
Budget
Bill Wolf
