Electric Industry Restructuring  Residential Weatherization News & Information About Your Consumer-Owned Utility. April 2001

Electrical Safety How often do you think about electrical safety–probably not as often as you should. Electrical safety is taken for granted–that is, until there is an incident which results in destruction of property or, possibly, injury or even death to individuals. Electricity is everywhere and people at home, in the school and workplace need to understand how to use it and electrical equipment safely. May is Electrical Safety Month. Please review the safety information listed below. Outlets   Check for outlets that have loose-fitting plugs, which can overheat and lead to fire. Replace any missing or broken wall plates. Make sure there are safety covers on all unused outlets that are accessible to children. Cords Make sure cords are in good condition–not frayed or cracked. Make sure they are placed out of traffic areas. Cords should never be nailed or stapled to the wall, baseboard or to another object. Do not place cords under carpets or rugs or rest any furniture on them. Extension Cords Check to see that the cords are not overloaded. Additionally, extension cords should only be used on a temporary basis; they are not intended as permanent household wiring. Make sure extension cords have safety closures to help prevent young children from shock hazards and mouth burn injuries. Plugs Make sure your plugs fit your outlets. Never remove the ground pin (the third prong) to make a three-prong plug fit a two-conductor outlet; this could lead to an electrical shock. NEVER FORCE A PLUG INTO AN OUTLET IF IT DOESN’T FIT. Plugs should fit securely into outlets. Avoid overloading outlets with too many appliances. Ground Fault Circuit Interrupters (GFCIs) GFCIs can help prevent electrocution. They should be used in any area where water and electricity may come into contact. When a GFCI senses current leakage in an electrical circuit, it assumes a ground fault has occurred. It then interrupts power fast enough to help prevent serious injury from electrical shock. Test GFCIs regularly according to manufacturer’s instructions to make sure they are working properly. Light Bulbs Check the bulbs in light fixtures to make sure they are the correct wattage. Replace bulbs that have higher wattage than recommended. If you don’t know the correct wattage, check with the manufacturer of the fixture. Make sure bulbs are screwed in securely; loose bulbs may overheat. Circuit Breakers/Fuses Circuit breakers and fuses should have the correct current rating for their circuit. If you do not know the correct rating, have an electrician identify the breaker or fuse rating to be used. Always replace a fuse with the same rated fuse. Water and Electricity Don’t Mix Don’t leave plugged-in appliances where they might come into contact with water. If a plugged-in appliance falls into water, NEVER reach in to pull it out–even if it’s turned off. Unplug it first and don’t use it until a qualified repair person has checked it. Appliances If an appliance repeatedly blows a fuse, trips a circuit breaker, or if it has given you a shock, unplug it and have it repaired or replaced. Entertainment/ Computer Equipment Check to see that the equipment is in good condition and working properly; look for cracks or damage in wiring, plugs, and connectors. Use a surge protector bearing the seal of a nationally recognized certification agency.

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ORECA Position on Electric Industry Restructuring Overview: The Oregon Rural Electric Cooperative Association supports postponing the implementation of laws providing for the restructuring of the electric power industry because of the potential to further destabilize Northwest wholesale energy markets, negatively affecting co-op customers.      Background: During the 1997 session, the Oregon Legislature passed SB 1149, which set out the basic framework and time lines for restructuring the electric industry. This law was designed to foster a competitive retail electric market through deregulation.       The law specifies that, by October 1, 2001, investor-owned utilities must allow their large non-residential customers to directly access energy markets and make purchases from independent energy services suppliers. The investor-owned utilities must also remove their excess electrical power generation facilities from regulation either by auction or transferring them to an unregulated affiliate through an administrative valuation process that is yet to be determined. They are allowed to retain generation capacity only up to an amount sufficient to serve residential and small non-residential customers on a cost-of-service basis.       Consumer-owned utilities maintained a neutral position throughout the discussion on deregulation in the 1999 legislative session with the stipulation that local control of consumer-owned utilities be included in SB 1149. Local control allows locally elected utility boards of directors to offer direct access to their customers if and when it is to a customer’s benefit. Consumer-owned utilities, being not-for-profit have only one master to serve–the customer. Our position, then and now, only reflects our interest in our customers’ ability to purchase electricity at the least cost and be assured they will receive a reliable source of power.       However, even local control does not protect electric cooperatives from the impacts of unstable energy markets felt either through direct market purchases, or through wholesale power contracts with the Bonneville Power Administration. As a result of this exposure, Oregon’s electric co-op customers are facing unprecedented rate increases. This fact alone requires that we revisit our position on Oregon’s pending restructuring plan.      Anything that affects the wholesale energy market directly affects electric cooperative customers either through wholesale market contracts or through the market exposure of the Bonneville Power Administration. A combination of unprecedented events (some resulting from California’s deregulated market experiment) has resulted in a dramatic shortage of energy resources and volatile energy market prices.       One of the lessons emanating from the California deregulation experiment is that price volatility results from removing cost-based regulation from the pricing of generating resources during a time of load/resource deficits. Removing cost-based regulation of the generation assets of Oregon’s investor-owned utilities may add to the current market instability and presents an unacceptable risk to our members. When SB 1149 was passed with an intended implementation date of October 1, 2001, the Legislature was unaware of the wholesale market problems we are now encountering. This situation may remedy itself over time as new generating resources are built in response to the current price signals in wholesale markets. ORECA, therefore, advises the Oregon Legislature to postpone restructuring and supports efforts to streamline the siting of new generating resources. The benefits of direct retail access should be reassessed when it becomes clear that the region’s resources are adequate to meet demand.

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Residential Weatherization As stated in previous updates, our power supplier, the Bonneville Power Administration (BPA), will be increasing our power costs drastically in the fall. BPA will notify us in late May or early June as to what that increase will be. In the months leading up to the rate increase, our newsletters will include information on how you can minimize the impact of the increase. If your home is heated electrically, now is the time to plan ahead. If you have a permanently installed electric heating system follow these simple steps to reduce your electric bill, save money and increase your comfort. CONTACT OUR MEMBER SERVICES DEPARTMENT We’ve weatherized more than 4200 homes over the last 20 years and chances are we have records of any weatherization work done on your home through our program. We can mail you a copy of the energy analysis we have on file, schedule a time to update the analysis, or meet at your home to perform a new analysis. WHAT YOUR ENERGY ANALYSIS WILL SHOW The energy analysis report will give you clear recommendations on what weatherization work should be done in the attic, crawlspace, walls, windows, air leakage control and heating systems (including thermostats). OBTAIN SOME BIDS We provide a list of approved weatherization contractors, certified to meet our strict weatherization standards. We even provide the bid sheets. CALL YOUR ANALYST... …energy analyst that is. Our energy analyst will meet with you to answer questions, give advice and sign you up to start the project. THE PROGRAM We will pay 50% of the cost of insulating your home and $4.00-$6.50 per square foot of window improvements. And if that’s not enough… you can get a 5% interest loan to finance the balance. BE PATIENT It shouldn't take more than a month to complete the work and have it carefully reviewed by our inspector. We look at the project through a very complete inspection procedure. We want to make sure we both get what we pay for. Depending on the level of the project, your heating bill can be reduced as much as 30-40%. TO SUMMARIZE... *We’ve tried to make the process as painless as possible. *We train and approve the contractors. *We provide a detailed energy analysis report. *We advise you on the most cost-effective features to include in your project. *We inspect all work to assure compliance with our strict installation guidelines. *We require contractors to complete corrections at no cost to you. *We pay 50% of the cost of insulating your home. *We provide a 5% interest loan for the balance of the project. *YOU sit back, relax and enjoy the comfort.

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