OPALCO leadership, years of financial mismanagement, and entrenched tenure
||| FROM RIKKI SWIN |||
I am writing as a concerned OPALCO member to directly question the Board President, the entire Board of Directors, and the General Manager regarding the co-op’s persistent pursuit of costly and questionable initiatives, including microgrid installations and other eccentricities such as a tidal power project and the purchase and operation of a broadband communications company.
OPALCO stated justifications for the energy projectsāenhanced resilience and decarbonizationādo not withstand close scrutiny. OPALCO has experienced no submarine power cable interruption since 1965, and recent outages have stemmed from mainland transmission issues or storms, not local cable failures. Even if a disruption occurred, the paused Bailer Hill microgrid is designed only for short-term (hours-long) backup to a limited set of critical facilities: PeaceHealth Peace Island Medical Center, the main San Juan Island fire station, the Friday Harbor Airport, and water treatment plantāmost of which already have reliable diesel generators. The existing Decatur Island microgrid has been criticized by many members as visually intrusive and, at best, capable of supplying less than 1/2 the island homes for only a few hours! It has no payback – ever*!
Furthermore, OPALCO claims of pursuing carbon-free energy ring hollow whenĀ OPALCO’s primary supplier, Bonneville Power Administration, delivers power that is already overwhelmingly renewable (90%) and 100% carbon-free (90% hydro-based and 10% nuclear)**.Ā Pouring member funds into local solar microgrids and exploratory tidal pilots will not reduce emissions beyond what we already achieve, yet it drives up rates in an already expensive island grid.Ā (We pay roughly double what our neighbors pay*).
This pattern of questionable spending traces directly to the 2015 acquisition of Rock Island Communications, which coincides with nine consecutive years of operational losses* on the electric side and substantial rate increases for kilowatt-hoursāplacing ever-heavier financial pressure on members. Meanwhile, theĀ General Manager (in the role since 2014,Ā over 11 years) has received inordinately high total compensationĀ ($792,000 in 2024 per OPALCO’s own IRS Form 990)*,Ā far exceeding norms. AndĀ several directors (including representatives from Districts 3 and 4)Ā exceeding a decade, andĀ others with 5ā8 years or moreāthis entrenched leadership has created persistent financial challenges and prioritized ventures that have not delivered benefits to members. (Note thereĀ are only 7 total board members)Ā
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- Current Makeup
- General Manager 11 years (since 2014)
- PresidentĀ Ā Ā Ā Ā Ā Ā 15 years (since 2011)
- District 3Ā Ā Ā Ā Ā Ā Ā Ā 13 years (since 2013)
- District 4Ā Ā Ā Ā Ā Ā Ā Ā 13 years (since 2013)
- District 1Ā Ā Ā Ā Ā Ā Ā Ā Ā 8 years (since 2018)
- District 3Ā Ā Ā Ā Ā Ā Ā Ā Ā 5 years (since 2021)
These venturesāpast and presentāraise serious questions about stewardship and priorities. Grants may offset some costs, but ratepayers ultimately bear the risks, maintenance, and long-term consequences. I respectfully request that the Board President, the Board of Directors, and the General Manager immediately cease advancement of microgrid and similar projects, conduct a full independent financial and strategic review (including the ongoing impact of the broadband subsidiary), and hold a member referendum before committing further resources to any non-essential spending.
OPALCO is a cooperativeāowned by us, the membersānot a platform for unchecked spending or experimentation. We deserve transparent, prudent leadership that prioritizes affordability and core reliability over costly ventures that have coincided with years of losses* and rate hikes*. Kindly explain yourselves fully in direct member communications, or make way for fresh leadership that truly serves the membership.
*Accounting terms (mumbo jumbo) allows them to cleverly disguise terms they use for reporting – thus creating frequent misconceptions by non- accounting aware everyday people (us) . It’s legal but it’s misleading (intentional?)
**Ā Percentages rounded
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Rkki , While I agree with some of what you have written, allow me to correct a few things. There have been submarine outages since 1965. This brings up the fact that the submarine cables are approaching the end of their life span and will need costly replacement, hence the need to start building financial reserves. Bonneville Power does provide a lot of carbon free electricity; BUT THEY ARE TAPPED OUT NOW. There is no more building of power generation plants to provide the renewable energy that everyone expects now, and to address future demands. They talk about future brownouts. People, Bonneville has been warning about this for a while, which is why they have been pushing the local power companies to help with providing power capacity. Thus OPALCO is trying to build solar generation in the islands. I understand the Douglas Rd solar has met with resistance, but agri-solar is a net positive to pursue. It has worked so well in other locations that I have applied to OPALCO to study my fields in front of my house on Orcas as a site.
Now I agree their public relations and interaction with their members is more corporate than co-op, which has been a growing disease among power co-ops for years. Now is the time to get serious about power generation, not when the lights go dark.
Rikki,
We look forward to addressing these topics at the OPALCO town hall this week and appreciate members engaging on these important issues.
OPALCO is a member-owned cooperative, and we welcome members to stay involved in the many ways availableāattending Board meetings, reviewing Board materials, voting in elections, following our communication channels, and participating in events throughout the year. These opportunities help provide context on the complex challenges the co-op is navigating now and into the future.
The OPALCO Board is made up of our neighbors who spend a significant amount of time and expertise to steward the co-op on behalf of all members. Like many utilities, we face difficult decisions that involve tradeoffs, and there are no simple solutions. We hope members will join us at Board meetings, events, and/or the upcoming town hall to learn more, ask questions, and be part of the conversation.