OPALCO Annual Meeting: Strong Footing for Energy & Telecom

— by Margie Doyle —

There’s always new things to learn at the OPALCO annual meeting

Orcas Power and Light Cooperative (OPALCO) members and guests boarded the Washington State Ferry on Saturday morning for a round-the-county-by-sea annual meeting.

OPALCO staff and administration were out in force, wearing white shirts with an orange-and-black OPALCO logo, in honor of General Manager Randy Cornelius’ loyalty to Oregon State University.

Cornelius is retiring as General Manager this September, and J. Foster Hildreth, Assistant General Manager, will take his place.

After counting the votes, Tally Committee Chair Doug Pearson brought up the vote tallies which re-elected Glenna Hall and Vince Dauciunas to the OPALCO board; and which defeated both proposed by-law changes.

Displays were on board to show people the advantages of adapting to solar (photovoltaic power) and joining the Member Owned Renewable Energy (MORE) conservation program.

In a “State of the Co-op” address, Board President Chris Thomerson said, “Electricity is 97 percent of what we do.”

Chris Thomerson, Chair of the OPALCO board, addresses the annual meeting

In addition to implementing new sources of power, encouraging conservation and providing electricity, OPALCO continues to pursue broadband expansion, building on its investment into fiber optic transmission, beginning in 2001. Last year, Thomerson reported, the rural utility cooperative realized $112,000, or 10 percent of its profit, through broadband services.

State Representative Jeff Morris spoke, praising OPALCO’s “entrepreneurial” culture.” He said, “The new world takes people who can embrace change, invest ‘behind’ the meter and try new things without breaking out the scythes and pitchforks.”

Cornelius spoke of OPALCO’s growth in recent years: from $56M in revenues on 2003 to $86M in 2013, a 65 percent increase. Debt grew from $11.3M to $17.3M in the same time, a 10 percent increase. The debt to asset ration over the 10-year period was 17 percent.

He expects there to be larger utility charges due to increased residential demands, new billing formulae and the demands of a “renewal generation” to maintain OPALCO infrastructure.

Cornelius said that the co-op has invested $3.4M in the communications network: “We all paid for it; we all benefit from it.” The co-op has seen improvements in safety and efficiency, as it explores increasing broadband (internet) accessibility among islanders.

During his presentation of the Co-op Safety Award to Lineman Tim Savage, Cornelius said he’d had a goal in his 45-year career that no one would be injured on his watch. “I’m very sad I didn’t make that goal,” he said. On Sept. 20, 2013, lineman Kevin Zoerb suffered severe injuries on the job. Savage’s efforts to assist Zorn show “a dedication to safety that’s an example to us all,” Cornelius said. He added that Zoerb will try to return to work by this June.

Hildreth spoke of the co-operative principle, “concern for the community” that guides efforts to implement wider broadband. “As a community we cannot do it alone,” he said.

In answer to member questions, Cornelius said that broadband makes up “less than two percent” of OPALCO’s business, with $388,000 revenue and $273,000 expenses last year. He said that more serious financial impact is the issues of submarine cables, which have a shorter life-span than the fiber optic cables that form the backbone of the broadband system.

When the $34M initiative to install a hybrid last year failed to win member support, the OPALCO board determined not to go forward. Now the co-op plans a platform that will allow more transmission connections, that will improve broadband through open and public efforts, Hildreth said.

Students Willow Paige, Peter Kamin, and Gabby Carver were presented with the Nourdine Jensen Youth Scholarship Awards. Winner William Coe was not present. The high school students were awarded a $500 scholarship and the opportunity to attend Youth Rally, a six-day summer camp at The College of Idaho in Caldwell, Idaho this summer.