||| FROM RIKKI SWIN |||
As a concerned OPALCO member, I am writing to highlight factors contributing to our high electricity rates and to encourage open discussion. These issues affect all members, and constructive dialogue can help ensure the cooperative serves us economically.
1. We pay DOUBLE what our neighbors pay!
2. OPALCO GM (general mgr.) compensation is DOUBLE what neighboring utilities pay.
3. Questionable ventures have increased operating costs and rates.
a) Purchase of ROCK ISLAND COMMUNICATIONS in 2015 caused 9 consecutive years of operating loss and has permanently raised rates.
b) Construction of DECATUR ISLAND MICROGRID increased operating costs and rates and has no payback.
c) BAILER HILL MICROGRID (temporarily paused) will increase operating costs and rates and will not have any payback.
d) TIDAL ENERGY PILOT PROJECT (proposed) will increase operating costs and rates and will not have any payback.
1. RATE COMPARISON
OPALCO’s residential rates are significantly higher than neighboring utilities. In 2024, our effective rate is 18.6 cents per kWh, compared to an average of 9.7 cents per kWh for neighboring public utilities.
Here is a comparison of residential rates cents/kWh, including base charges:
| Year | OPALCO | Jefferson PUD | Other PUDs Avg. | Inland Power | Chelan PUD | Snohomish PUD | Seattle City Light | Clark PUD |
|---|---|---|---|---|---|---|---|---|
| 2015 | 10–12 | ~9.5 | ~9–11 | ~9–10 | ~3.0 | ~9.0 | ~10.5 | ~8.0 |
| 2016 | 11–13 | ~9.8 | ~9–11 | ~9–10 | ~3.0 | ~9.2 | ~10.8 | ~8.0 |
| 2017 | 12–14 | ~10.0 | ~10–12 | ~10 | ~3.0 | ~9.5 | ~11.0 | ~8.0 |
| 2018 | 13–15 | ~10.5 | ~10–12 | ~10–11 | ~3.0 | ~9.6 | ~11.2 | ~8.0 |
| 2019 | 14–16 | ~11.0 | ~10–13 | ~10–11 | ~3.2 | ~9.8 | ~11.5 | ~8.0 |
| 2020 | 15–17 | ~11.5 | ~11–13 | ~11 | ~3.2 | ~10.0 | ~12.0 | ~8.0 |
| 2021 | 16–18 | ~12.0 | ~11–14 | ~11–12 | ~3.3 | ~10.2 | ~12.5 | ~8.0 |
| 2022 | 17–18 | ~12.5 | ~12–14 | ~12 | ~3.5 | ~10.3 | ~13.0 | ~8.5 |
| 2023 | ~18 | ~13.0 | ~13–15 | ~12–13 | ~3.6 | ~10.5 | ~13.5 | ~9.0 |
| 2024 | ~18.6 | ~13.5 | ~13–16 | ~13 | ~3.7 | ~11.8 | ~13.9 | ~10.7 |
Here are the wholesale prices from BPA: (what OPALCO pays to purchase our electricity)
| Year(s) | BPA Rate Period | Approx. Average Effective Rate (cents/kWh) |
| 2011 | BP-10/BP-12 | ~3.0–3.2 |
| 2012–2013 | BP-12 | ~3.26 |
| 2014–2015 | BP-14 | ~3.45 |
| 2016–2017 | BP-16 | ~3.52 |
| 2018–2019 | BP-18 | ~3.56 |
| 2020–2021 | BP-20 | ~3.73 |
| 2022–2023 | BP-22 | ~3.95 |
| 2024–2025 | BP-24 | ~4.19–4.5 |
| 2026–2027 (projected) | BP-26 | ~4.56 |
2. GM Compensation Foster Hildreth’s 2024 total compensation of $791,700 is notably higher than at neighboring utilities:
| Utility | Type | Customers | GM Compensation | Cost per Customer |
|---|---|---|---|---|
| OPALCO | Co-op | ~15,900 | $791,700 | $50 |
| Jefferson County PUD | PUD | ~21,000 | ~$365,000 | $17 |
| Clallam/Mason/Lewis/Grays Harbor PUDs | PUDs | 30–45,000 | $200–300,000 | $5–10 |
| Inland Power & Light Co-op | Co-op | ~40,000 | ~$359–500,000 | $9–13 |
| Grant/Benton/Chelan PUDs | PUDs | 47–52,000 | $300–450,000 | $6–9 |
| Snohomish County PUD | PUD | ~375,000 | ~$600,000 | $2 |
| Seattle City Light | Municipal | ~500,000 | ~$494,000 | $1 |
| Clark Public Utilities | PUD | ~220,000 | $250–400,000 | $1–2 |
OPALCO GM Compensation History
| Year | GM Compensation | % Increase |
|---|---|---|
| 2015 | $306,452 | — |
| 2016 | $351,775 | 15% |
| 2017 | $399,038 | 13% |
| 2018 | $455,652 | 14% |
| 2019 | $484,963 | 6% |
| 2020 | $558,058 | 15% |
| 2021 | $607,478 | 9% |
| 2022 | $632,145 | 4% |
| 2023 | $684,355 | 8% |
| 2024 | $791,700 | 16% |
| 2025 est | $878,787 | average 11% |
OPALCO attributes 85% of the total compensation for managing OPALCO and 15% for managing Rock Island Communications. Ironically this makes the current GM, Foster Hildreth, a part-time OPALCO employee! Foster Hildreth has been employed by OPALCO since 2006 and worked his way up to GM in 2014 and which coincidentally was the first of 9 consecutive years when the annual losses began.
| Year | Revenue | Expenses | Net Income (Loss) | |
| 2011 | $21,430,248 | $21,230,248 | $200,000 | |
| 2012 | $20,649,266 | $20,472,019 | $177,247 | |
| 2013 | $21,675,442 | $21,480,169 | $195,273 | |
| 2014 | $22,682,062 | $22,846,563 | ($164,501) | |
| 2015 | $23,091,097 | $24,871,210 | ($1,780,113) | |
| 2016 | $22,995,839 | $25,733,673 | ($2,737,834) | |
| 2017 | $25,764,382 | $28,316,387 | ($2,552,005) | |
| 2018 | $27,190,537 | $29,691,589 | ($2,501,052) | |
| 2019 | $29,528,689 | $31,370,365 | ($1,841,676) | |
| 2020 | $31,088,422 | $32,473,333 | ($1,384,911) | |
| 2021 | $35,371,006 | $35,802,437 | ($431,431) | |
| 2022 | $36,286,957 | $36,369,556 | ($82,599) | |
| 2023 | $39,416,329 | $37,571,378 | $1,844,951 | |
| 2024 | $40,850,946 | $40,775,978 | $74,968 | |
| ($10,983,683) | TOTAL |
3(a) Rock Island Communications OPALCO acquired this business in 2015. Prior to the acquisition OPALCO had positive or break-even margins. Post-acquisition build-out costs involved significant investment which contributed to 8 consecutive years of OPALCO losses! And in turn we had 8 consecutive years of rate increases. Members would benefit from public disclosure of audited and/or independent benchmark studies for Rock Island Communications and OPALCO separate from each other.
3(b) Decatur Island Microgrid This solar panel array and battery storage facility completed in 2018 cost $1.05M to build. $847K from shares (units) sold to customers and $207K from grants. However, by purchasing shares the member is entitled to a certain amount of energy produced by the solar array. This means that OPALCO will receive less revenue as a result, so in effect OPALCO is paying back the solar investors in the end. The island has ~70–80 year-round residents (plus seasonal; ~237 households total). The microgrid does not supply all (or even most) of Decatur Island’s power needs. The solar array can only produce ~20–30% of the island’s small load. The battery storage unit provides only hours of backup for critical loads during outages, not full continuous supply. Recent 2025 expansion proposals (larger solar on adjacent land) faced opposition. It’s ugly (think of the big chain link fenced-in transformers of old, except this time it’s transformers, solar panels and a huge battery container that is Lithium-ion cells which can overheat and enter thermal runaway, leading to fires/explosions that release toxic gases (e.g., hydrogen fluoride, carbon monoxide). Suits provide flame resistance and limited chemical protection. There is a YouTube video online. https://www.youtube.
3(c) Bailer Hill Microgrid This project is currently “paused” with plans to restart in 2027 according to OPALCO. It is intended to supply backup to key Friday Harbor entities like Peace Island Hospital, the main fire station, and the water treatment but these facilities already have backup systems and this would be double redundancy! I question solar arrays in our 48.5 N latitude as the Bailer Hill location is frequently covered by fog/mist which frequently shuts down the airport. I have had many flights canceled as a result. A conventional diesel powered backup system would cost far less—but why do we need double redundancy?
3(d) Tidal Energy Pilot Project This one really takes the cake! Personally I love the idea of developing tidal energy as a power source. I am an inventor with patents and love to study this kind of thing but is OPALCO a public utility or a research and development laboratory? “C’mon Man” I look at our population of less than 16,000 people and what we are getting involved in with these advanced projects and think why not leave these to the larger utilities who have the money, manpower, brainpower and qualifications to do credible research.
I also consider how our culture has been indoctrinated with anthropogenic climate change fears for 30 years. We were supposed to be underwater or overheated long ago. I study such things as the Milankovitch cycles (the earth has had 10 ice ages over the last 1 million years and each one lasts about 100k years – we know this from ice cores). We are emerging from one now which is why we see temp increases). It used to be 2 miles of ice right here in the San Juans— several times over! Don’t take my word for it. Bill Gates has nuanced his public messaging on climate change in a significant way in late 2025. In an essay published on October 28, 2025, he explicitly pushes back against what he calls “doomsday” or alarmist views of climate change. He argues that while climate change is an issue, it is not existential for humanity and should not overshadow other global priorities like poverty and disease, which cause more immediate suffering. In our area we could focus on housing instead of building unnecessary solar farms.
Personal Note I have been approached by my neighbors suggesting I apply/run for an OPALCO board position. I seriously considered it and did some research to learn that a previous board member was threatened with legal action if he divulged content from OPALCO board meetings! Why the secrecy unless there is something to hide? I believe I can better serve our community by not becoming a board member—I want to keep my rights to free speech.
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You totally had my attention until you took a hard right turn into the tinfoil hat zone by mentioning Milankovitch cycles and Bill Gates! Come on, that’s crazy talk and it diminishes any credibility you might have established by publicizing several valid concerns about OPALCO’s finances.
If you want to get to the bottom of vast conspiracy theories, you need to dig deeper. Gates is not a climate scientist, nor is he particularly knowledgeable about the subject. He is a billionaire who seeks favor with the current “fossil fuel friendly” admin. They hate renewables, and Gates is an investor in various “next gen” nuclear power companies which will require regulatory exceptions and massive federal subsidies to compete with the extremely low cost of wind and solar. Nuclear power remains the most expensive energy source worldwide and it’s unlikely to reach the point where it’s financially competitive with renewables, which are now so cheap that in some parts of the world power companies are giving away the energy for free.
I have seen this disingenuous Bill Gates citation pop up on many right-wing websites and it’s a bit disturbing that climate misinformation such as this has found a home here on The Orcasonian. You have to consider WHO is making the argument, not just WHAT they have to say.
Climate change is real, it is an existential threat, and it doesn’t matter what Bill Gates thinks about it. You’re welcome.
Krista from OPALCO here. This article is so rife with misinformation it’s hard to know where to start. You can disagree with OPALCO and some of our methodology, but we need to start from facts.
We are happy to answer your questions about any of these topics. Let’s review a few key points of misinformation listed above.
Yes – OPALCO does likely pay more than our neighbors 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 above 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 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.
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.
You are saying that Foster should get more money, because San Juan County is “more complicated” than, Seattle? Give me a break. Whenever the Rock Island merger happened, many people tried to speak up aboust the BS and OPALCO threatened to SUE people who were challenging them. OPALCO is as corrupt as we all suspect it is…
If there is so much disinformation here, why does OPALCO not publish its own analysis of GM compensation and make it available to members each year on a timely basis. Instead, we are told to ‘do better’.
I would posit that if we need pay the GM of a small electric co-op nearly a million dollars per year (which I am told is an estimate as we don’t know this year’s numbers) we have the wrong guy in the job and perhaps a hedge fund would be a better place of employment for him. I simply don’t buy the argument that there is one guy that can do the job and he must be paid double his peers.
The tone of OPALCO’s responses to these articles and comments tell me there is a leadership problem. I do hope some new board members can help get things back on track. We should not have an adversarial relationship with a co-op we all own.
Good idea! Here is a link to just such a document that we update every year: https://www.opalco.com/quick-fact-staff-compensation/2021/11/. Along with our 990 forms, audited financials, budget reports, Form 7, and lots more. We put tons of our 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 your looking for? Email me at communications@opalco.com.
YES Climate Change is real, but it’s also natural. It keeps on happening over the last million years. We can debate if some of it is influenced by mankind or not but we will never know that answer in our lifetimes or that of our children’s children. My point in mentioning Bill Gates is to demonstrate that even some of the hard-core influencers are changing their mind. I’m no Bill Gates fan and I am neither right or left.
Regarding my article on OPALCO costs – I was pointing out that a public utility should not be doing R&D work, which includes Broadband communications, email service, solar arrays that have no payback, and above all unproven tidal projects. It should also not be paying exorbitantly high wages to the GM. I reported publicly available figures.
Rikki, I live full time on Decatur Island and am an OPALCO member. I appreciate your willingness to openly discuss the high OPALCO rates and give evidence in support of your position of Opalco’s high electricity rates and questionable ventures.
Among the other factors mentioned in your letter, The Decatur Microgrid, Bailer Hill, and OPALCO’s proposed additional Solar Array on Decatur contribute extensively to the high electricity rates, and I would add, lead to a negative cost variance from poor scope disclosure and downplaying or replacing appropriateness and governance with time.
Thank you for noting the “opposition” to OPALCO’s solar array expansion here on Decatur. To quote”[i]t’s ugly” is not just aesthetically – but divisively, mentally, ethically, psychologically, and emotionally.