Guest Column: How OPALCO Should Evolve

by Islands Energy Coalition

Thanks to competent, committed staff and board leadership, OPALCO has emerged as a strong organization. In the 75 years since its inception, OPALCO has overcome incredible technical, financial and geographical challenges to expand electrical service to its members.

The bedrock of OPALCO’s local success has been Bonneville Power Administration (BPA) who supplied cheap, reliable hydropower to meet OPALCO’s growing needs.

Looking forward, OPALCO and its members, are in for an exciting ride as the bedrock of BPA’s cheap, plentiful power is no longer there. BPA’s rates are rising (over 8% next year and more beyond) and OPALCO’s increased demand for power will likely be met, not by BPA’s cheap hydro, but rather through purchase from volatile electricity market at much higher prices.

So what will OPALCO’s “new chapter” look like?

Is it broadband? Broadband is understandably appealing to OPALCO as the “new chapter” because of its familiar story line: expanding network infrastructure despite technical, financial and geographical challenges.

But broadband is an entirely different beast. Unlike electricity distribution which offers OPALCO a natural monopoly, broadband is known for its intense competition and fast-changing technology. Broadband involvement therefore requires cautious prudence and broad-based community endorsement to ensure OPALO’s financial and social capital is not put at risk.

Where else can OPALCO apply its talents and leverage its assets to take on new challenges while contributing to the county’s economic development?

Given OPALCO’s established distribution grid, we suggest the new OPALCO chapter’s primary focus is not about hardware, but rather software and “peopleware.” In addition to laying down wire and making prudent capital investments, now is the time to: redesign the tariff structure to be more cost-reflective and conducive to conservation, offer incentives for community solar generation, and invest in green jobs and the local economy through energy efficiency and homegrown energy.

OPALCO can leverage its social capital and access to its members to engage them not as passive consumers, but rather as active collaborating partners, energy co-producers and creative shaper of electricity load.

OPALCO can incubate and cultivate a new breed of architects and retrofit crews to create and incorporate green designs and help homeowners lower their bills.

OPALCO’s business can evolve beyond wire services, in partnership with local non-profits and businesses, to deliver complete one-stop energy services and solutions from consulting to financing.

The benefits of the “local green energy vision” is so clear and numerous, including:

§ lower bills (from plugging leaks)
§ lower OPALCO electricity rates (from reduced need to buy electricity at expensive market rates)
§ increased jobs and expanded businesses in local energy efficiency and green energy production.
§ re-circulating saved money and investments in our local economy
§ economic development with multiplier effects, and
§ improved energy self-sufficiency which includes environmental benefits that positively affect climate change.

As OPALCO members, we are ready to be partners of OPALCO’s new direction. Together, we will evolve our relationship with energy from “consumers of commodity” (I can pay, and therefore I consume) towards becoming co-stewards of this shared, precious resource through an uncertain future.

Let’s participate in co-writing OPALCO’s new chapter to be about collaboration, green economy and resiliency.

Islands Energy Coalition (islandsenergy.wordpress.com) is a volunteer-based group of energy enthusiasts with an interest in community discussions, solutions and empowerment towards a happy, resilient energy future for the San Juan Islands.