energy costs Reduce your Save money and energy by installing a ductless heating/ cooling system. How a ductless system works. And why it works better!

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1 June 2010 Reduce your energy costs News & Information about your consumer-owned utility Save money and energy by installing a ductless heating/ cooling system. Save money and energy Install a ductless system and use 25% to 50% less energy to heat your home than with an electric resistance heating system. Have a more comfortable home An ultra-quiet fan evenly circulates air, eliminating hot and cold spots. Low-cost and easy installation Installation is quick, simple and inexpensive, which means little or no disruption to your home. Get air conditioning Systems come standard with air conditioning (AC), so you can eliminate window AC units. Get a rebate of $750 to $1,500 from Salem Electric Plus you may be eligible for up to $1,900 in state and federal tax credits. What is a ductless heat pump system? A ductless heat pump is a highly efficient heating and cooling system. It is easily installed as a new primary heat source for your home. These systems heat and cool homes at a fraction of the cost of zonal heating systems (such as baseboard and wall heaters). Ductless heat pumps are much safer, quieter and heat rooms evenly, no more hot or cool spots. Ductless systems do not require expensive ductwork that is often inefficient. They only require a small opening in the wall or ceiling. Installation is as simple as mounting the indoor and outdoor units, connecting the refrigerant lines, and making a few electrical connections. How a ductless system works. And why it works better! Ductless systems have three main parts: An indoor unit, mounted on a wall, which delivers the heated or cooled air. An outdoor unit, that sits on the ground. A remote control that controls the unit. The indoor and outdoor units are connected by a small bundle of cables including a refrigerant line. These cables only require a three-inch hole in the wall for installation. How a ductless heat pump works: A heat pump transfers heat using refrigerant expansion and compression within a cycle. It takes cold air and makes it warm and takes warm air and makes it cold, when you want it and where you want it. They use an ultra-quiet fan that circulates air evenly throughout living areas, eliminating hot and cold spots. In addition to lowering your heating bill, and providing air conditioning, adding a ductless system increases the flexibility of your home s heating system. You can install a ductless system in your main living area and keep your existing heating system in place to ensure your bedrooms and bathrooms remain at the desired temperature even on the coldest days. h

2 2010 Annual Membership Meeting The 2010 Salem Electric Annual membership meeting was held May 11 at Roth s Salem West in the Oregon Room. Incumbents Jerry Berger and Paul Ennor were re-elected by the membership to serve three-year terms. Following the meeting, the board elected Jerry Berger, President; Jeff Anderson, Vice-President; and Joe Van Meter, Secretary/Treasurer. Alicia Bonesteele, Jim Dyer, and Carl Beach are also on the board. h Jerry Berger, Board President, outlines how dependability and reliability apply to operations at Salem Electric. General Manager, Bob Speckman, talks about Salem Electric s accomplishments in Special Services Representative, Helen Findley, provides information about Salem Electric s heating assistance program. Administrative Assistant, Cindy Lenker, reviews the National Rural Electric Cooperative Association s (NRECA) International Program which brings power to underdeveloped countries. Salem electric info bulletin June 2010

3 Annual meeting May 11, 2010 Larysa Pavelek, a junior at West Salem High School, thanks Salem Electric for being selected as a delegate for the NRECA Youth Tour in Washington, D.C. Facilities Maintenance Coordinator, Rodney Sukau, explains how his job relates to dependability and reliability. Each year Salem Electric awards ten $1,000 scholarships to individuals residing in Salem Electric s service area. The scholarship recipients were recognized at the annual meeting, six of whom are pictures below. (L to R) Sophie Tomczyk, Sophia Muscutt, Rebecca Barnick, Meghan Gorman, Erin Yankus and Evan Smith. Unable to attend were: Andrew Stumbo, Breann Kinsey and one recipient who requested not to be named. June 2010

4 Supporting our communities Salem Electric has supported the schools in the communities it serves for several years. Recently Salem Electric was recognized as the Business Partner of the Month by the Salem-Keizer School District for its partnerships with Chapman Hill Elementary School and West Salem High School. h Terry Kelly (R) accepts the award for Salem Electric from School Board Chair, Steve Chambers. Fraud attempts Utility customers in Oregon, Washington and Northern California have been the target of people committing fraud. Customers have been contacted by phone from parties claiming to be a utility company representative in an attempt to collect on alleged past due accounts. The customer is threatened with having their power shut off if they don t provide a credit card number. Salem Electric does not solicit credit card information over the phone to resolve credit issues. If you are suspicious of a call you receive from someone claiming to represent Salem Electric, hang up and contact our office at h Salem electric info bulletin

5 Board Meeting Summary from April 27, 2010 Administrative Services: Engineering & Operations: Presented by: Carl E. Beach, Secretary/Treasurer From your board of directors June 2010 A review of a financial quarterly comparison shows that write-offs are down from last year. March 2010 was the 13th time in SE s history with no outages internally, externally, or momentary. This followed February 2010, making this the first time in SE history with back-to-back no-outage months. Member Services: Nine kids participated in Take Your Daughters and Sons to Work Day. The four-hour program included a Power Town demonstration, building tour, and an activities course with the crew where kids operated the backhoe, rode in a bucket truck and participated in some fun games. Manager s Report: Information was presented on a pilot program that NWPPA is considering which would create a refresher course for director certification. Leadership Youth: Congratulations to Michael Nelson, SE s Leadership Youth representative, who has graduated from the Leadership Youth Program. Michael commented on how special the program was to allow students to be part of businesses in the community and what a benefit it is to the students. Annual Report: SE s contract auditing firm presented the annual audit report. As in past years, SE earned a clean, unqualified opinion, which is the best you can get. Upcoming Board Meetings June 22 July 27 August 24 Jerry Berger President Jeff Anderson Vice-President Board of Directors Carl Beach Secretary/Treasurer Alicia Bonesteele Jim Dyer Paul Ennor Joe Van Meter All board meetings are held at 7 PM at Salem Electric, 633 Seventh Street NW, Salem, Oregon June 2010

6 Fuel costs In the not-too-distant past, it was straightforward planning power purchases for Salem Electric. Historically, the Bonneville Power Administration (BPA), our wholesale power supplier, provided our cooperative with all the energy needed to serve our members with reliable, affordable electricity. The BPA blended a diverse mix of energy resources and sold it to our electric cooperative at a cost-based rate. The BPA s primary resource (approximately 80%) has always been hydropower clean, renewable, low-cost hydropower with a mix of wind, nuclear, natural gas and a small portion of coal. As the hydropower system in the Northwest has reached capacity, BPA can no longer meet the future load growth of our region with existing resources. Therefore, in 2011, preference utilities like Salem Electric that purchase their power from BPA will have tiered rates. BPA s Tier I will primarily meet the current load (demand) for power at our co-op with the existing hydropower generated on the federal system. BPA s Tier II rates will be similar to purchasing power on the open market. Co-ops served by BPA have the option to secure their own resources to meet their future energy demand, in place of buying power at Tier II rates. The cost of different energy resources vary and on the open market can fluctuate with market conditions and demand. Included in the purchase of energy is the cost of generation, transmission, and storage of that resource. Not all energy is created equal. The Northwest Power and Conservation Council prepared a 20-year electric power plan for the Northwest; chapter 6 of the 2010 Power Plan forecasts the costs for generating resources over the next 20 years. As you can see in the chart below, the forecast prices of these power resources vary greatly from 6.7 cents per kwh to 30 cents. For comparison sake, currently Salem Electric buys power from BPA at 3.8 cents per kwh. It is a known fact that power is going to cost more in the future as existing resources are at capacity and new resources are being developed. For this reason, Salem Electric is taking steps to reduce energy use and stabilize rates through energyefficiency and conservation programs. We are proud of our record of providing reliable, affordable electricity to our members and are committed to continue this tradition. h Cost to generate and deliver new energy resources Nuclear 11 Natural Gas Petroleum Coke Coal Wind Solar Geothermal 8.2 Biomass Hydropower (new) Cents per kwh From the Northwest Power & Conservation Council s 6th Northwest Power Plan SALEM ELECTRIC PO BOX SEVENTH STREET NW SALEM, OR PH: FAX: se@salemelectric.com salemelectric.com Printed on recycled paper with soy-based ink.