June 2001

Rate Relief
From A Director - Wind Power

News & Views from Your Elected Representatives

Minutes of the Meeting Held on:

April 24, 2001

The April 24, meeting was called to order at 7:01 pm by President Horn. The meeting agenda and Consent Calendar were approved, with the exception of the auditor’s report.
     Scott Muller and Ken Kuhns of Kenneth Kuhns and Co. presented the annual audit report. Muller complimented staff for maintaining the records and that there were no audit adjustments. The audit report was unanimously approved.
     Among other business, Roger Kuhlman updated the board on installation of the new heating and cooling system in the office. The system will save 142,000 kWhs annually and $8,000 per year at current rates.
     Terry Kelly updated the board on the Rate Increase Action Plan. Discussion included having meetings with large commercial and industrial customers to talk about rates, power supply and conservation opportunities. Kelly informed the board about two coupons for $6 off the purchase price of compact fluorescent bulbs. The bulbs are available at retail stores and Salem Electric.
     Under the manager’s report, Bob Speckman updated the board on the fast-moving events of power deregulation. Speckman met with BPA transmission representatives to discuss options for load curtailment. Salem Electric is trying to get advanced notice of any potential blackouts that could affect our customers later this summer. This would allow customers time to shut down or shift commercial loads. Speckman was designated by board action to represent Salem Electric as its voting delegate to the 2001 NWPPA Annual Meeting.
     With unanimous support of the board, Salem Electric will join the Utility Wind Development Group, which is doing preliminary work in identifying several opportunities for wind generation in the Northwest. The initial cost approved was $10,000. Natalie Reding, our Leadership Youth representative, will graduate on May 22 from the program.
     Natalie is Salem Electric’s first participant and we wish her success in the future. Reding distributed information on the Keizer Junior Miss program, in which she will participate, and announced that she was elected Vice-President at McNary High School for the upcoming school year. Go Natalie!
     The board adjourned at 8:17 pm

     Jeff Anderson

     Acting Secretary

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A September 26, 1997 editorial in "The Oregonian" proclaimed the need to invest in wind power. The editors were concerned that there would be little incentive to invest in renewable energy resources. They felt that this was true because these alternative energy projects produce power at costs exceeding spot market rates. They stated, "Yet this region will need a diversified energy portfolio in the 21st century to fill gaps in supply when today's primary sources of cheap energy - hydroelectricity and natural gas - are compromised by environmental laws, shortages or price jumps." We certainly are in a period of high natural gas prices, shortages and price jumps in the market.
    The one potential good that can come from the challenges facing the electric industry today is the potentially competitive cost of wind power. Salem Electric is known for the innovative thinking and support of its members in the area of renewable energy. There was great support for our investing in wind power from the Foote Creek Rim Project in Wyoming in 1997. The support was fantastic even though it meant a small increase in rates. Once again there is an opportunity to look at the generation potential for the Northwest.
     Roger Kuhlman, Salem Electric’s Engineering and Operations Manager, and I recently attended a meeting of electric cooperatives interested in the development of wind power in the northwestern states. At the meeting were people from cooperatives from Washington, Idaho and Oregon. Already, major investor-owned utilities such as Enron and Florida Power and Light have been testing wind sites in Oregon and Washington. The cooperatives agreed that this is the right time to begin to investigate the potential for developing wind power for member-owned utilities. The Northwest is fortunate to have many areas that may provide the necessary amounts and consistency for wind generation. These areas have been roughly mapped for some time. Locating exact sites and evaluating them is a preliminary step to development.
     Another among several positive factors for development of wind power is the availability of storage. Wind, for all its attributes is not a consistent generation source. There must be a method of "storage" during periods when wind is not available. We are fortunate to have the greatest storage batteries in the world  - the Northwest hydro system. When the wind drops, water is needed to generate electricity. When the wind is generating, not as much water is spilled, thus the dams work like storage batteries. A positive also is that wind is, and always will be, free.
     Still another positive is that most of the sites are in the agricultural areas of eastern Washington and Oregon, as well as Idaho. Many of these areas are economically depressed because of the prices for farm goods. The leases for wind generation will provide a huge economic plus for many of these farms and counties, both in revenue and jobs.
     The region will benefit because there will be additional sources of power to help avoid the terrible situation in which we find ourselves now. Lack of generation is one of the causes of our current problem. Wind is a clean source of power and, as more sites are developed, will be competitive even during a "normal" period of supply and demand.
     Salem Electric again plans to show leadership in preparing for the future. The Last Mile Electric Co-op is being formed to investigate the feasibility of member-owned utilities developing wind power. Salem Electric’s board of directors has agreed to invest $10,000, along with 12 to 14 other co-ops, to fund the study. Further involvement will depend on the results of the study. Once those are known, the input of our members will be sought and their wishes followed.

     Jim Dyer

     Director

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