Phone: (503) 362-3601

Salem Electric’s web site is: www.salemelectric.com

Salem Electric is a electric utility provider operating as a cooperative. It was founded in 1938 by a group of West Salem residents lead by founder, Harry Read. Read was also the founder of Salem radio station KSLM in 1934. A franchise was eventually obtained from the City of West Salem, Oregon for the distribution of electricity within its boundaries. On March 17, 1941, after several years of negotiations, Salem Electric entered into a contract with Bonneville Power Administration (BPA) to purchase 100 kw of firm power from the administration’s West Salem substation.

Organized to serve the essentially urban area already served by a private power company, Portland General Electric, Salem Electric was unable to borrow funds from the Rural Electrification Administration for construction of a distribution system. While contract negotiations with Bonneville Power Administration were under way, Harry Read obtained electrical equipment on credit from Eoff Electric Company. Corporation members also advanced money, and a small distribution system was constructed. The distribution system was owned by Harry Read, mortgaged to the Eoff Electric Company, and operated under lease by Salem Electric. Cash advanced by members other than Harry Read was to be repaid through rebates on power bills and involved no long-term equity in the Salem Electric system. The system was energized in April, 1941, with 17 residential and five commercial accounts.

In mid-1942, Salem Electric purchased its distribution system from Harry Read for $15,000 with a portion of the purchase price going to pay off the Eoff Electric Company mortgage. In August, Salem Electric contracted with BPA to use the unutilized capacity of a BPA transmission line crossing the Willamette River from West Salem to Salem. Using energy supplied over this line, Salem Electric began service to the downtown Salem commercial area in early 1943. Two years later, the cooperative contracted with BPA for a second point of delivery, located at the Salem Alumina Substation in North Salem. Harry Read was described as a "feisty little guy." Salem’s press became involved and open exchanges between the Mayor, known to favor Portland General Electric Company service, and Read made for spicy reading. When Salem’s Mayor J.L. Franzen threatened Read with arrest if he continued to add customers in Salem, Read replied that "there have been many offers to put up bail and pay fines, and it might not be too bad to lay out in your jail if the writer could use his electric blanket on the jail’s power and have some homemade coffee".

Indeed, Read was arrested for installing wires over Ferry Street without a franchise from the City of Salem. In January, 1948, Read and two other Salem Electric employees were arrested for installing wires over Carleton Way, Donald Street, and Portland Road ordered by Salem’s City Engineer, J. H. Davis. Later, Salem’s ordinance requiring a franchise from the City of Salem was overturned by the Oregon Supreme Court - Read fought his fines to the highest court which overturned them. On November 2, 1948, Salem Electric won a franchise by Salem voters. Read did not live long to enjoy the victory. A diabetic and incorrigible about his diet, he often stayed in touch with events from his hospital bed. 

Salem Electric’s rapid growth continued during the 1950s with the system almost tripling in size. In 1958, the co-op constructed a second transmission line across the Willamette, linking its West and North Salem service areas. During 1968, after several years of discussions, Salem Electric and PGE reached agreement on service boundaries for the Salem/Keizer area. In 1968, Salem Electric constructed a new office building and warehouse located adjacent to the old headquarters on the northwest corner of Front and Union Streets. The former wood-framed structure used as headquarters since 1949 was razed.

Salem Electric received its third point of delivery, Brush College Substation, from Bonneville Power Administration in 1972, a 70% increase in the co-op’s available capacity. In 1975, Salem Electric’s Board approved a $1 million loan to continue its acquisition of the remainder of  PGE facilities and for conversion of overhead to underground facilities in the downtown area. In 1976, the City of Salem notified Salem Electric of its intent to condemn the co-op’s eight-year-old Front Street headquarters as a part of its Front Street widening project. As a result, the construction of the current headquarters on Seventh Street in West Salem began on 3.5 acres of land for a 11,600-square-foot office building and a 9,000-squarefoot warehouse.

Struggles to keep a secure energy supply for its customers and provide for long-term improvements for the Salem Electric system was the focus of the Salem Electric Board for much of the 1970s and early 80s. Open board meetings became routine business for Salem Electric’s Board beginning in 1982. In 1983, Salem Electric provided a Member Assistance Program for 100 member families to receive assistance in paying their utility bills during an exceptionally cold winter. November, 1983, was the first anniversary of the City of  Keizer’s incorporation and, by early 1984, formalized relationships between the new city and the co-op were in place and final plans drawn for a new substation on Alder Street in Keizer. In 1986, a "Super Good Cents" program was added through the conservation department to provide technical assistance to builders and homeowners in having energy-efficient homes. Also in 1986, 77 elderly customers received financial assistance from the newly-created Senior Citizens’ Assistance Program, and a group of volunteers from Salem Electric participated in a variety of community-based fund-raising events. During 1999, Salem Electric began inspecting their services to assure customers of uninterrupted service due to the upcoming change of the century, which went smoothly when the calendar switched to the year 2000. In 1999, Salem Electric was providing services to 16,036 accounts and had 47 employees.

Bibliography:
Author: John R. Ross
Title: Salem Electric - Against all Odds
Pages/Volume/Issue No: 121
Date/Copyright - Reprint Date: 1991
Publisher/City of Publication: Salem Electric Company, Salem, Or
Owning Agency: Salem Electric Company

Title: Salem Electric History
Pages/Volume/Issue No: 13 pages
Date/Copyright - Reprint Date: 1999, no copyright indicated
Publisher/City of Publication: Salem Electric Company,Salem, Or
Owning Agency: Salem Electric Co