The article titled “OPALCO Bill Too High? Here’s Why” is so rife with misinformation it’s hard to know where to start. It’s fine to disagree with OPALCO and some of the co-op methodology, but we need to start from facts.
The OPALCO team is happy to answer your questions about any of these topics. Let’s review a few key points of misinformation listed in the article.
Yes – OPALCO does likely pay more than our neighbors for power as we have the most complicated electrical grid with the least number of consumers in the state. Providing reliable energy to our 20-island community is nothing like the mainland. OPALCO requires 11 substations, 25 miles of submarine cables, over 1,000 miles of mostly underground, storm-hardened distribution. Undergrounding in “the rock” costs 4X more than overhead lines. Submarine cables cost around 200X more.
OPALCO CANNOT operate at a loss. The numbers listed in the article show no correlation to OPALCO’s financial statements, which are all listed on our website. As a nonprofit cooperative that relies on federal loans to operate our business, we cannot operate at a loss – we have to hold at least 30% equity to meet requirements to get those funds. We budget a margin each year to ensure we don’t have a loss which is returned to co-op members in the form of capital credits.
Comparing GM rates, one needs to compare apples to apples – compare the base wages as listed on the 990. The list in this article does not list years or what is included in the wages. All wage information is public for most of these comparative utilities on Propublica.
As emailed to Ms. Swin this week regarding Community Solar projects: Funding for Community Solar projects doesn’t come from rates. Members purchasing Community Solar units provide the funds to pay project costs.
OPALCO board service has conflict of interest policies as dictated by our bylaws and as with all board service requirements there are confidential topics covered in executive sessions that members are expected to respect. Board decisions, requirements for Board members, board meeting topic materials, video recordings, minutes, financials, budgets, and on and on are available for review on our website.
Let’s do our homework and do better about using correct information when we offer disagreements or feedback. OPALCO puts a lot of the co-op documentation on the website to give members an accurate picture of how their co-op is doing and why we are doing what we do. Check it out! Don’t see something you’re looking for? Email us at communications@opalco.com.
– Krista Bouchey – Manager of Communications – Orcas Power & Light Cooperative