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January 1 - Rate Decrease

Safety First!
News & Information About Your Consumer-Owned Utility.

January 1997

Employee Profile:
Bob Speckman

It might surprise you to know that Bob Speckman's uncle, Hank Alderman, was involved in hiring Woody Guthrie to write songs. Hank worked for the information division of the Bonneville Power Administration, at the time, and was later deputy administrator. "Sure", said Bob, "Guthrie was an itinerant folk singer in those days. How else do you think he would come to write Roll On Columbia Roll On." During his 30-day contract, Guthrie wrote 26 songs for BPA.

 It's quite easy to get Bob talking about his Oregon ancestors. There were at least three county sheriffs and one lynched criminal; a feisty Congresswoman and a state historian (all "elbow" relatives through his uncle Hank). Like uncle Hank, Bob loves history and has collected trunks full of memorabilia on his forebears and his heroes. And he'll talk about his wife, Kate, and his two boys, John and Sam, till the cows come home. But getting him to talk at length about himself? Well, that's not quite so simple. Which says a lot about what kind of a manager he'll make at Salem Electric.

 He was born in Portland, 1949, a middle son of five children. The family moved to West Salem in 1963, when Bob's father - manager and lobbyist for the Oregon State Pharmaceutical Association - moved his office here. Later, after he got out of the Army and college, Bob joined with his father to form Speckman and Associates. At 26, Bob got his first taste of politics (which he still loves) and the electric utility business (which he also still loves). The business' first client was Oregon Rural Electric Cooperative Association. Bob became a Salem Electric employee in 1982. This month, he takes Jere Overs' place as general manager, the fifth in Salem Electric's 59 years.

 Hired to build Salem Electric's customer and community relations program, Bob said "the job stretched me from the start." Salem Electric had bought into the region's nuclear power complex, called WPPSS (Washington Public Power Supply System). A vocal anti-nuclear public picketed the local cooperative. Cost overruns caused WPPSS to default with Salem Electric at risk for some of the debt. The NW Power Planning and Conservation Act had just been enacted, changing the utility industry's emphasis from sales to conservation. And Salem Electric's board and membership went through some of their own stretches, bringing about better communications and open meetings. Maybe it was just as well Bob was a bachelor at the time.

 In 1988, he became assistant general manager. There were plans being drawn for construction of his "bachelor retirement home." Then he met Kate, a Willamette University graduate and account executive at the Statesman Journal. They married in 1990, started a family and soon moved to bigger lodgings.

 Salem Electric's next challenge, Bob says, is coming to grips with the national movement towards "re-regulating the electric utility industry" in the hopes of creating lower rates through increased competition. While he sees nothing inherently wrong with competition, Bob believes it may prove costly to the Northwest, where rates are already lower than anywhere in the nation. With restructuring it is unlikely the Northwest will maintain its present advantage of cheap power, while the rest of the country wants the same, he said. "Many utility experts predict competition will spell the end of conservation programs and a return to the sales mentality," he said. "Our utility is very concerned that we not lose the conservation gains we've made in the past 15 years."

 Does he see radical changes ahead for Salem Electric? Bob answered this way: "As long as we do our job, our members will continue to want us to be here working for them."

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January 1 - Rate Decrease

 The board of directors has adopted new rate schedules for all residential and general service customers, resulting in an overall rate decrease of 4.4%. These rates reflect the reduction of wholesale power costs from BPA (7.4% retail rate decrease), the increased costs to fully fund our conservation programs (2% retail increase), and to cover expected Salem Electric operations costs over the next five-year period (1% retail increase).

 Not all classes received the same decrease. Salem Electric hired a consultant to do a cost of service study. The result of the study showed that the residential class should get a 5.9% reduction, while the general service and general service with demand classes get reductions of 2.2% and 3.2%, respectively. The study also showed that because of the new BPA wholesale rate structure, the winter period for general service rates should be changed from September-March to August-April.

 The new rates do not reflect the cost of "green power." As mentioned in previous bulletins, Salem Electric has agreed to buy as much renewable power as we can from BPA that would result in no more than a 4% rate increase. The availability date of this renewable power is still unknown.

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Safety First!

Electricity is a clean and efficient source of energy that is readily available. However, if used incorrectly, it can be fatal. Hazardous situations may occur involving utility lines. If you notice any of the following situations or any other situation you feel could be hazardous, call our office at 362-3601.

  • A broken utility pole.
  • A tree limb or kite that has fallen across utility lines.
  • Wires dangling from utility poles.
  • A fallen antenna touching or near a utility line.
  • Wires lying on the ground.  

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