— by Alex MacLeod —
There is growing unhappiness among many OPALCO member-customers following this year’s huge rate increase. OPALCO’s board raised the “facilities charge” to each customer by about 40% — this is a base charge, absent the delivery of any electricity — and raised electric rates by an average of 9%, about double the increase in its cost to OPALCO.
Now the board is preparing to raise rates again, effective in July. To accomplish this, the board is holding a special meeting Thursday at 9 a.m. at its Eastsound headquarters, a fact it has done essentially nothing to publicize.
That is indicative of how the OPALCO board and management have dealt with us members since it began moving into the broadband business several years ago. It has done a large of its important business behind closed doors, has ignored member complaints about its lack of transparency and, astonishingly, has asked us to believe that the cost of its foray into the Internet business will be no more than $72 per electric customer over the next two years.
At the same time, OPALCO has violated terms of its core loan agreements and had to promise the lender that it will raise the “facilities charge” as much and as often as necessary to be in compliance with the terms of the loan.
Among other things, the “facilities charge” hits low-income members hardest and does nothing to encourage conservation. It has been aptly described by one critic as “Robin Hood-in-reverse.”
In a memo to the board, Foster Hildreth, OPALCO’s general manager, calls the financial situation “an enormous revenue challenge” which he blames largely on global warming. He is presenting several options to solve the problem, none of which have anything to do with reducing expenses. It’s all revenue, revenue, and more revenue.
The reality, of course, is that OPALCO wouldn’t find itself in this really serious financial mess were it not spending so much money moving into the Internet business. However, it continues to insist, against considerable evidence to the contrary (not to mention common sense), that all these investments are to improve the electric-grid, not to provide faster Internet service for those who can afford it.
So, prepare yourselves for yet another rate increase in July, and maybe August, September and beyond in order to keep the lender satisfied. You could also attend Thursday’s meeting and suggest the board include finding savings — which it could rather easily by suspending its new broadband investments — rather than just sucking more “revenue” out of us members.
For this cooperative to survive, it members need to get engaged. Now is the time.
Alex MacLeod is a 25-plus year member of OPALCO who lives on Shaw Island.
“In addition, the cooperative shall maintain an email list to notify any Energy Members who sign up to be notified when any board meetings are called or scheduled and whether they are open to the Energy Members. Any amendments to these Bylaws shall be emailed to the same email list”.
People who “work for a living” can’t go to meetings at 9am! I suspect that is part of the reason that the Board calls meetings that a majority cannot attend. Those who are unfairly burdened by these increases are left out! To me, the Board’s decision to get into the Internet business without an Open Meeting so we could ALL decide, shows a lack of respect for a democratic process in the Board’s decision making.
Spirit Eagle
Rick Hughes: Can you help in getting OPALCO to change the time of this meeting to the evening so more people can attend? Or maybe one meeting during the day and one at night? We really need to fight these rate increases and see that OPALCO really needs the rate increase for buying electricity.
To Spirit Eagle and Ms. Wellingtton:
The decision about Opalco entering the Internet services business was made in a series of Board meetings following several Town Hall events and other open community discussions. The Rock Island Communications acquisition, approved by your democratically elected Board, was the best outcome possible to serve our islands’ business and member demand for broadband.
The Board meeting times address a logical plan get Directors from their respective islands to one place given our ferry system. These are working Board meetings, and we expect that members who can attend face the same issues with transportation logistics.
Theresa: I expect that for the Board Members, missing work is not as critical to whether their rent is paid or food is on the table!
I wonder, (if Opalco doesn’t go bankrupt) what other “Needs” of businesses and well-heeled members will be forced on the rest of Our Coop Members? Opalco just doesn’t “get it!”
Spirit Eagle