Expect a 5% increase in your power bill
— from Suzanne Olson —
OPALCO’s Board of Directors has approved the 2016 budget with measures in place to keep our Co-op financially healthy, following two years of declining energy sales. Members’ bills will go up by an average of 5% beginning in January and a new Energy Assistance Program will provide a monthly discount to qualified households.
The full budget report and presentation are at: https://www.opalco.com/wp-
At the November 19th budget work session, the Board reviewed the results of the 2015 member survey and heard the voice of the membership say: do your best to minimize rate increases, use voluntary donations not rate increases to fund rebate and renewable energy programs, and place a high priority on rate relief for qualified seniors and low-income households. The full survey report is available at https://www.opalco.com/wp-
The Board spent a day discussing budget measures and alternate billing and rate structures in detail before approving the budget at a regular board meeting on Friday, November 20th in Friday Harbor. Both meetings were attended by a handful of co-op members. To read the full story, go to www.opalco.com/news. In brief, the 2016
- Billing increase of 5% spread equally over energy and facility charges
- New Energy Assistance Program for qualifying fixed and low-income members
- Temporary adjustment in member Capital Credit distribution
- Temporary Revenue Recovery Add-on line item ends in December 2015
- Energy efficiency and conservation rebates available through the summer with a focus on residential
- Analysis about the benefits of fuel switching from gas and propane to electricity
- Analysis of OPALCO expenses versus mainland electric Co-ops
- Planning for a pilot Community Solar project
OPALCO’s wholly-owned subsidiary Rock Island Communications came in on target for fiber to the home deployment in 2015, but was behind schedule and over budget on LTE Wireless deployment because of a midstream change in the core equipment necessary to serve the challenging terrain of San Juan County. In 2016, with a new approach to LTE service, Rock Island expects to catch up on its service offerings and reach its financial OPALCO’s budget is built to meet the cost of service, which is higher than most other utilities given our remote island communities connected to the mainland by submarine cables. During the past two years of revenue shortfalls, we’ve tightened the belt along the way and delayed projects and hiring to meet the need. In 2016, we project a stable revenue year as the adjustments we’ve made for changing energy usage and weather patterns are built in to budget assumptions. It’s been a bit of a bumpy ride for all utilities in the region, but OPALCO projects smoother sailing ahead as we adjust to the new weather norms, get through the final two years of our submarine cable replacement project, major upgrades to our communications infrastructure, Rock Island’s start-up operations begin to level out and we begin to add new electrical load through fuel switching.
Thank you for your patience and cooperation during the bumps!
Orcas Power & Light Cooperative (OPALCO) is a non-profit electrical utility serving about 11,200 co-op member-owners on 20 islands in San Juan County. OPALCO provides electricity that is 95% greenhouse-gas free, predominately generated by hydro-electric plants. OPALCO was founded in 1937 to deliver electricity and improve the quality of life in the San Juan islands.
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I am so very disappointed in how Opalco has instigated their revenue recovery over the past couple of years. The burden of the increases that have been passed on to its members has disproportionately fallen on us low-end consumers of electricity. For 27 years I have tried to do my part in conserving energy by controlling how much electricity my family uses. Conservation used to be important to our local electrical coop. Obviously, that is no longer the case! Now, if you conserve, you get punished!
Over the past two years, our monthly Opalco bill has risen by 40% or more. This, despite maintaining the same level of usage. Most of the increase has come vis the new Facility charge, which has gone from $28.90 in 2014, to $38.90 in 2015. Prior to these increases, Opalco had commissioned a study by an independent consulting firm to help them navigate through the difficulties caused by decrease in revenue (due to warmer winters). Has anyone read that report? It’s online at the Opalco website. In their report to Opalco, the firm cautioned Opalco about not trying to use a new Facility charge as the sole means of increasing and stabilizing revenue. Their concern was that putting too much emphasis on that charge, as opposed to also including a rate increase for higher users, would place too much of a burden on the low-end users. It seems Opalco ignored this advice.
Especially made obvious when the Facility charge was increased by $10 per month, and no change was made to the usage rate.
When I completed their survey last year, I certainly recommended that costs be spread between rate increases and Facility. I was primarily referring to the cost increases that had already been instigated! So, now, we are being tossed some crumbs of consolation by the board/management agreeing to spread the upcoming 5% increase between the two! How about a revisit of that earlier decision that so disproportionately distributed the burden via that whopping Facility charge?
I have totally lost faith in how decisions are made at Opalco. Does management and the Board truly not understand how their decisions are affecting our community? How about those folks on Social Security, or those on the low wages that are common here? How are they faring with these new Opalco bills? Or is it more important to not upset the high-end consumers too much by increasing the rate at the upper end of the scale?
I see that the Board and Management Do Not Care how it effects the low wage workers and Social Security recipients. And “Yes” it appears they are bending over backwards to please those who hold the purse strings in their Mini mansions. It’s obvious to me that the OPALCO BOARD AND MANAGEMENT DO NOT have all of the Coop member’s interests at heart! I know of someone who couldn’t turn on her heat when it turned cold because of the expense. I saw this person before bedtime and she was preparing for bed in Winter soxs, a sweater and a coat, a hat and mittens. She has electric heat but didn’t dare turn it on because She Couldn’t AFFORD it!
Just because there are non-profits here who will help people out Sometimes, this does NOT mean that OPALCO should not be equitable in its’ service charges to All members. When businesses start depending on charitable institutions and churches to pick up the very large slack between service to the community and their bottom line something is very wrong!
In the past week or two I read an article from the Economic Development Council who are trying to get More people to start up businesses here. It was mentioned that, (tO paraphrase) wages are low (good for business) and many non-profits are here to help people out. I saw between the lines that it was an invitation to pay almost slave wages in This economy and if conscience gets in the way, non-profits and churches will help. Or maybe the Government will pass out more food cards! WOW! This attitude is just like OPALCO’s! High Electric Bills for everyone except the high users of such and everyone else pays for Opalco’s poor business decisions no matter their income~
So Thank You Ian for standing up to OPALCO and its’ many blunders over the past couple of years!
PS I say let the people who want Broadband Totally PAY FOR it themselves!
Excellent comments and points Ian, and Spirit Eagle .I think it’s time for some of us to start writing guest eds and letters to the ed – so that maybe we can at least get some media coverage to this issue.
I am a low kwh electricity user because I thought that conservation was doing something good for the planet for future generations; that used to be OPALCO’s stance too, until the broadband monster took over rational minds. Besides, I can’t afford to use more kwh.
This year, I finally had to put on my heat just before the really cold snap. I just couldn’t take it anymore – being all bundled up and stiff with a back that continually threatened severe spasm. I dread knowing where heating and cooking will put me financially. Forget showers and baths – can’t afford those too!
My bill in 2015 alone went up 25% in summer – so much for their “10-12% average increase. Winter will be more telling. What OPALCO board and management doesn’t tell you is that for a low-income person it can be the difference in whether you can use your heat, take a bath, or just have the basic minimum comfort in life; not something an aging low income population will get to choose. Oh – and guess what. If you live in the UGA in, say, apartments or condos, guess what your only source of heat, hot water, and cooking is – electric. So the low income urbanites get double-slammed. I asked myself when the power went out on that cold and stormy night, what would happen to us all if it stays out for days? OPALCO should be asking that too! But hey- upper level “management” doesn’t have to care about us.
I’ve been asking all over the country and in Washington, “what’s your fixed facility electric rate?” I encourage others to ask everyone they know around the country, and let’s get a database going! Most people’s seem to be in the $10-20 per month range -some less. So, OPALCO is gouging the people on the lowest end of the economic spectrum, where a 25% – I guess now 30-40% increase for someone like me – will be out of sight to even pay.
I’ve heard stories about OPALCO shutting off power to low income people because they CAN”T pay, they just get farther and farther behind and can’t catch up or some months in winter are unable to pay at all. Then, OPALCO charges these people $100 bucks to turn their power back on – a flip of a switch! This is nothing less than extortion of the most vulnerable in our population. Am I to believe that OPALCO “cares” about us when they use such tactics?
I already get LiHeap help every year – I’m so thankful for that. Last year, although I have paid into PAL since becoming a member in 2002, I finally had to ask for PAL. But these two things barely covered me with the increases. The only reason they did is because the increases didn’t start until March 2015. Now what? These two funds won’t begin to cover me this winter, with the 35-40% increase when my gross is about $7,000. And I’m only one of MANY.
So I ask you, OPALCO Board – what are your intentions for us? With mean average wage in SJC at $65,000 per year, a whole bunch of us are POOR and low income; what’s your plan for us when by, in 2019, the projected fixed facility rate is predicted to be $79 a month? What if it’s more? Can we all opt-out of your coop that’s no longer our coop, and get federal help with a Public facility that serves the forgotten ones thrown under the bus
In July of last year, OPALCO changed their bylaws so it will be harder for the growing number of member/stakeholders who think that OPALCO no longer represents us, to oust board members who support thhe extortion.
Maybe it’s time for the OPALCO Board and Manager to admit it; they don’t represent us anymore. Is it ime to disband the coop and ask for a Public Power Facility? Can the citizens start a Public Utility or something alternative with proper oversight from ripping off the most vulnerable in the population? Since there is no regulatory oversight for private coops, I think the concerned Public should come together and investigate other options.
Sadie – the board approved a new energy assistance program to help low-income members meet their cost of power. Details will be discussed in December, but it looks like it will give a $10/month discount to qualified members. The cost to provide power to 20 islands is greater than most utilities face – maybe more than any other. Regardless of governing structure, the cost of providing service must be covered. I’m sorry to hear how hard it is for you to make ends meet on the island and especially appreciate that you are nevertheless rounding up for PAL. If more members would round-up, PAL would be able to keep more members in hot water and comfort this winter. It’s pathetic that only about 1/3 of co-op members are rounding up their bills for PAL when there are so many who could afford the small average donation of $6 a year without forgoing a single bath or cozy winter evening at home. PAL is featured in OICF’s giving catalog this year. Before any member has the right to caterwaul about consideration for low-income members – they had better make sure they are doing their part as Sadie is.
I’ve lived on Orcas for 13 years and did not know about PAL until I needed assistance years ago. Since that time I have been rounding up for PAL also and can’t believe that only 1/3 of co-op members do.
I am wondering how I’m going to get through this winter and know that by 2019 it will be impossible unless some changes are made with OPALCO’s proposed budget increase in facility charge, I move off the island or I die before then. Two of those options are unacceptable to me. Guess which two.
To start, maybe OPALCO needs to campaign more for Project PAL because if only 1/3 are participating it could be they are unaware of it as I was.
Hi Darlene- OPALCO staffers have ramped up PAL, and that started in September. We currently have an OICF Giving Catalog option so that people who want to make larger donations can make them through OICF to get the tax deduction, and the money is passed through to PAL.
Relief Assistance was front and center at the most recent OPALCO Board meeting, following the Needs Assistance work group that OPALCO convened over the summer. Housing and transportation still occupy a bigger part of most low-income household budgets, but we understand how an increase in electric bills can seem like just one more worry when food, transportation, housing, and medical costs keep rising. -Theresa Haynie for OPALCO