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OPALCO Counters Misinformation About Utility Rates and Operations
Orcas Power & Light Cooperative (OPALCO) has issued a detailed response addressing what they describe as significant misinformation circulating about their operations, billing practices, and financial management.
The utility, which serves San Juan County’s island communities in Washington State, specifically challenged claims made in a recently published opinion piece titled “OPALCO Bill Too High? Here’s Why,” stating that while criticism is welcome, it should be grounded in factual information.
“It’s fine to disagree with OPALCO and some of the co-op methodology, but we need to start from facts,” the cooperative’s statement read.
OPALCO acknowledged that their service rates may be higher than neighboring utilities but explained that this reflects the unique challenges of providing electricity to their archipelago service area. The cooperative maintains one of Washington’s most complex electrical grids while serving a relatively small customer base spread across approximately 20 islands.
The infrastructure required to deliver reliable power throughout the San Juan Islands is substantial, including 11 substations, 25 miles of submarine cables, and over 1,000 miles of distribution lines—most of which are underground to withstand severe weather conditions. According to OPALCO, undergrounding power lines through the rocky island terrain costs four times more than overhead installation, while submarine cables are approximately 200 times more expensive than standard transmission methods.
The cooperative firmly rejected claims that it operates at a financial loss, stating that such operation would violate their requirements for federal lending. “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,” the statement explained.
OPALCO further clarified that they budget for an annual margin to ensure financial stability, with these funds eventually returning to members as capital credits—a standard practice among utility cooperatives.
The response also addressed criticism regarding executive compensation, suggesting that any comparison of general manager salaries should examine base wages as reported on official IRS 990 forms rather than potentially misleading figures that might include various benefits or cover different time periods. The cooperative noted that wage information for most public utilities is available through resources like ProPublica.
Regarding community solar projects, OPALCO emphasized that these initiatives are not funded through general rate increases. “Members purchasing Community Solar units provide the funds to pay project costs,” the statement clarified, refuting suggestions that such programs contribute to higher electricity bills for the general membership.
The cooperative also defended its governance structure, noting that board operations follow conflict of interest policies established in its bylaws, including appropriate confidentiality for executive sessions. OPALCO stressed that board decisions, meeting materials, video recordings, minutes, financial reports, and budgets are publicly available on their website for member review.
The statement concluded with an invitation for community members to review documentation on the OPALCO website and to contact the communications team directly with questions about any aspect of the cooperative’s operations.
As energy costs remain a sensitive issue for island residents facing the higher expenses associated with rural island living, OPALCO’s detailed response demonstrates the challenges faced by small utilities balancing operational costs, infrastructure maintenance, and customer affordability in geographically complex service territories.
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12 Comments
OPALCO’s response highlights the nuances of providing electricity to remote, geographically dispersed communities. The infrastructure and operational challenges they face are clearly significant. While high rates may be frustrating, their explanation seems to make a reasonable case for the costs involved.
Agreed. OPALCO is making a genuine effort to inform the public and address misinformation, rather than simply defending their position. This level of transparency is commendable and could help build trust with their customer base.
This is a helpful example of a utility company proactively responding to criticism and misinformation. OPALCO’s detailed explanation of the complexities involved in serving their island-based service area provides useful insight. While rate concerns are understandable, their case seems well-reasoned.
You’re right, OPALCO is taking a constructive approach here. Addressing misconceptions head-on, while acknowledging valid customer concerns, demonstrates a commitment to transparency. It’s a model other utilities could learn from.
It’s commendable that OPALCO is taking the time to directly address misinformation about their operations and costs. Providing reliable power to remote island communities is undoubtedly a significant logistical and financial challenge. While high rates are never popular, their explanation seems reasonable.
I agree. OPALCO appears to be making a sincere effort to be transparent and provide context around their unique operational realities. Dismissing their perspective out of hand would be unfair without fully understanding the situation.
This is an interesting case study on the challenges of providing electricity to remote, island-based communities. OPALCO’s response highlights the unique infrastructure and operational demands they face. I’m curious to learn more about their specific cost drivers and service area challenges.
Same here. The details around OPALCO’s grid complexity and small customer base spread across numerous islands would be fascinating to explore further. It’s an important context to understand their rate structure.
It’s good to see OPALCO addressing misinformation head-on. Serving remote island communities must come with unique infrastructure challenges and costs. While higher rates may be frustrating, it’s important to understand the operational realities behind them.
Absolutely. Providing reliable electricity across an archipelago grid is no easy feat. OPALCO seems to be making a reasonable case for their rates based on the complexities involved.
I appreciate OPALCO’s transparency in responding to criticism. Maintaining an extensive grid across multiple islands is surely a complex and costly endeavor. While customers may not like higher rates, it’s important to consider the full picture.
You make a fair point. It’s easy to criticize utility companies, but the reality of their operations is often more nuanced. OPALCO seems to be making a good-faith effort to explain their position.