I appreciate how OPALCO has gone beyond the call of duty to fill the communication voids and difficulties caused by CenturyLinks’ cable break. The support for OPALCO to expand broadband services in the county is greater than ever. The board has thus decided on Nov 21, 2013 to accelerate and fund this effort through the use of OPALCO equity and electricity rates.
What was surprising to me about the OPALCO board’s latest broadband plan was the significance of the decision, the lack of information about the plan, and the lack of opportunity for members to have a voice in decision-making.
OPALCO’s earlier broadband proposal of charging every electricity users $10/month to underwrite the $35 million investment had to be abandoned in May due to insufficient subscriptions by members to make the venture financially feasible. Now the board has decided to go forward with an accelerated plan that may cost as much as $72 million in the long term – double the original figure! Yet, we, owners-members of OPALCO who will be asked to pay for the investments, have been given few details about this new plan, let alone the opportunity to vote with our checkbook.
I trust that OPALCO did perform sufficient due diligence, weighed the financial risks to the co-op carefully and had the best interests of the entire membership in mind. But with two OPALCO board members resigning earlier (in June and October this year) because of discomfort around broadband and financial approaches taken by the board, I do not feel at ease about information being withheld from us.
If the board feels confident that the new approved broadband plan is financially prudent and beneficial to its members and the county, please share details of the plan with us, so we can fully understand and support the effort. In particular, it would be helpful to have the following information or questions answers.
· – Investment and business plan: What does the approved $12 million 3-year budget include? How will the $72 million long-term cost be paid for? What’s the cost-benefit ratio for the coop? How many households/businesses need to subscribe to broadband services at what rates to make the investments worthwhile? Are the rates competitive? What are the risks?
· – Cost allocation and affordability: What’s the cost split between electricity and communication network users? What’s the impact on the electricity bills? I heard the electricity rates will increase 18% to pay for broadband-related investments in the next three years – is this true? Given that our electricity rates from Bonneville Power Administration is expected to rise noticeably, how will the mandatory broadband surcharge affect affordability of electricity for people on fixed income?
Lastly, I would like to request that OPALCO’s future board packets do not withhold information, especially on items of policy and financial significance to the co-op. For instance, the Nov 21 board packet, which led to the significant decision discussed above, left the “Broadband Deployment Options” page blank. It would also be helpful for the meeting minutes to also capture a summary of the discussions – for better transparency and accountability.
As a coop, we are co-owners and would like to be treated as such, not just passive bill-payers with no voice in decision-making. OPALCO’s main mission is to bring power and light to its members. Please don’t keep us in the dark. Thank you.
Chom Greacen
Wonderfully said. I have some deep financial concerns about this given I support myself on a fixed income – social security.
Dear Readers: The information from Chom Greacen is not factual.
Considering that the Board directive to accelerate last mile member connections transpired only November 21st, design and technology methodologies – and costs – have yet to be determined.
OPALCO is planning to expand our communication infrastructure “middle mile” (or backbone) to benefit our electric grid and enhance emergency communications to our crews out into the field. This middle mile expansion will also allow our members to make “last mile” (end user) connections on an incremental basis (at the cost of service) as the middle mile expansion occurs over the next few years. These middle mile expansion costs are built into OPALCO’s financial requirements, along with all operations, maintenance and capital projects.
Expansion of the middle mile will position OPALCO to provide last mile connections to some members (where it makes financial sense for those members). PLEASE NOTE these member connections will be at the cost of service with a neutral effect on our budget and rates. These connections will be reviewed on a case by case basis to meet the cost of service test.
As updates are available, please go to http://www.opalco.com/broadband to get the latest news and developments.