Letter to Editor | OPALCO bill too high? Here’s why…

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.

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.

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:

Here are the wholesale prices from BPA: (what OPALCO pays to purchase our electricity)

2. GM Compensation Foster Hildreth’s 2024 total compensation of $791,700 is notably higher than at neighboring utilities:

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.

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.com/watch?v=nUgR7y4rokU

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.