January 1999

All across the country companies are busy attacking the Year 2000 computer bug, and Salem Electric is no exception.

The Year 2000 problem, also known as Y2K or the millennium bug, may show itself in millions of electronic devices contained in all kinds of equipment, from the simplest to the most sophisticated.

The source of the Y2K problem is easy to understand: in order to save space, many computer systems allow only two digits for identification of the year (example-1996 is represented as 96). By excluding the century digits, the last day of 1999 is represented as 99-12-31, but the next day would be 00-01-01. So, when 2000 arrives, the date may not be accurately identified and, if not corrected, could result in problems ranging from minimal to catastrophic. It's a world of, "what ifs," a global problem that has industry, government, and ordinary citizens working to identify and fix or replace anything that might fail because of the Y2K problem.

All departments at SE are involved in our task force which is meeting regularly and taking the necessary steps to help keep the electricity flowing on January 1, 2000. Our task force has developed a comprehensive checklist to help ensure SE's "Y2K readiness." The steps taken have been to inventory, assess and prioritize, test, repair or replace, retest, and plan for contingencies. Our plan includes focusing on the equipment (meters, switches, etc.) necessary to keep the lights on. We are also in communication with other businesses and utilities, as well as statewide, regional and national organizations, to share information and planning strategies.

Although no one can make guarantees as to what will happen when the new century arrives, we're doing everything we can to be ready and to minimize disruptions. Most importantly, we have been working with the Bonneville Power Administration (BPA), our electricity supplier and transmission provider, to see that they are ready.

Some of our main areas of concern include:

Our mainframe computer, will be replaced this year. We have been reassured by the supplier and manufacturer that the new computer is Y2K compliant. After purchasing the new mainframe early in the year, SE staff will transfer programs and roll the date forward for testing purposes.

Individual personal computers have been inventoried to record all software currently loaded. Approximately 80% of the software is contained in Microsoft Office and we are told that Microsoft Office 2000 will be available in the second quarter of 1999 and will be Y2K compliant. The upgrade will be loaded immediately when available.

Operational equipment includes equipment in the field (i.e., switch gear, metering, capacitor controls, automated meter reading equipment, etc.) and internal equipment such as communication, security and office equipment, to name a few. All equipment is being inventoried and checked for compliance.

Other external entities, including other utilities, play a big role in our Y2K plan. If our suppliers haven't addressed the potential Y2K problem, we may not be able to receive equipment and materials. We've developed a vendor Y2K checklist to distribute to all of our major vendors.

Last, but certainly not least, is our power supplier, BPA. We are in close contact with BPA to learn more about their plan, and others connected to the power grid throughout the region.

We are very aware of the interconnected nature of the power supply and delivery system. BPA supplies us with the "juice" and is also connected to and controls a major part of the regional electricity grid, with many supply and delivery points all along the line. Still, it all comes around to the customer at the end of the line, whether it's a home or a business. Every connection to the grid plays a role in the success of our Y2K plan.

Rest assured that electric utilities, probably more than most businesses, deal regularly with emergency situations. Y2K is certainly a different situation from a storm-related outage, but it is comparable, in that we are used to dealing with the unexpected. We have been aggressively addressing the issues on our preparedness plans, and are looking at the second quarter of 1999 for compliance.

While we cannot guarantee we won't experience Y2K problems, our top priority is to provide responsive and reliable service to all our customers.

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Check out our residential weatherization program, WeatherWise.

We'll pay 50% of the cost to insulate your home and $2, $4, or $6 per square foot for glass improvements, depending on the application. In addition, through our partnership with Commercial Bank, we'll loan you the rest of the job cost at 5%, up to $5,000 for a one to five-year term. The only requirement is that you have permanently-installed electric heat.

If you're interested in a free energy audit on your home or apartment complex, complete the form below and return it to Salem Electric-you can even mail it with your payment. We'll call you to schedule an appointment

Just send the information below to the address indicated.

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__ YES, I have permanently-installed electric heat.

__ YES, I'm interested in a free energy audit.

__ YES, I'm interested in a free water heater wrap and/or shower head installation (must have an electric water heater).

Name _______________________________________

Address _____________________________________

Mailing Address (if different)

____________________________________________

Day Phone ___________________________________

Evening Phone ________________________________

Return to:

Salem Electric
P.O. Box 5588
Salem OR 97304-0055

If you have questions, contact our Member Services Department at 362-3601.

Appointments available Monday through Friday, 8:30 a.m. to 4:00 p.m.

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 Surprised by how much energy you're using?

 Have an energy usage problem we can't resolve over the phone? Mount Brice, Senior Customer Accounts Field Representative, will check your meter.

Remember electric meters, like other mechanical devices, tend to slow as they age. And high meter readings aren't usually the result of meter-reading error. Most are simply due to increased energy usage. Still surprised? Give us a call at 362-3601.

Mount Brice,servicing you since 1979.

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 Green Power Rate Increase

 Our new target date for the delivery of our green power is January 15, 1999.

This is our final step in becoming a utility that sells electricity which is generated from 100% renewable resources.

Our original agreement with BPA called for a December 15, 1998 delivery date, but due to some delays in testing the wind turbines, the date has been pushed back.

When we receive this new power resource, generated through a wind power project in Wyoming, your cost of electricity will increase 3.5%. The increase will take effect on the delivery date and your bill will be prorated accordingly.

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We're not afraid
of the dark.

Lights out? Not for long. Because during those unfortunate times when you have a power outage, our line crew is on the job. Rain or shine, wind or snow, day or night, even in extreme temperatures, we'll reconnect your service quickly, safely and efficiently. Next time you need help getting things running, give us a call at 362-3601.

Jon Charnetski
serving you
since 1985.

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Salmon

As we've reported previously, the board is considering implementing a voluntary program where our customers could contribute to a salmon habitat recovery program called "For the Sake of the Salmon." Please watch your February "Information Bulletin" for a special article from board president, Jim Dyer. The article will describe the program and request your input.

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