At the March 15 board meeting in Friday Harbor, the Orcas Power and Light Co-op Board approved a rate increase of approximately 3 percent across the board, as well as some changes to the deposits and fees schedule, in order to meet their budget. The rate increase is effective with the March billing.
As a nonprofit, member-owned cooperative, OPALCO delivers electricity at cost to 20 islands in the San Juans. OPALCO’s Board is involved in an in-depth review of the co-op’s rate structure (see It’s electrifying archives at www.opalco.com). This rate increase is the first step to meet operating expenses. In addition, the board has commissioned a cost-of-service study to examine all tariffs and the overall rate structure as it compares with the billing determinants in our current contract with Bonneville Power Administration.
OPALCO conducts cost-of-service studies every four—five years.
The co-op’s current contract with BPA includes a tiered rate structure that guarantees a certain amount of mostly hydro power up to a measured ceiling of demand called our high-water mark. When our co-op load grows beyond that high-water mark, BPA will purchase power at market rates to meet the additional demand. While this increase is not related to tiered rates, the overall rate structure study will forecast the potential impact of tiered rates going forward.
General Manager Randy Cornelius anticipates that with relatively slow electric consumption growth in San Juan County of about 1 percent per year, the public will not be subject to market “tier two” rates until about 2014.
“As co-op members working together,” Cornelius said. “We can forestall market rates by managing our load through energy efficiency and conservation behaviors. If we all pitch in, do what we can to make our homes and businesses more energy efficient, the savings will be significant.”
Stay tuned for more information about rates in the coming months. OPALCO Board meetings are open to the public.
Meeting details and agenda are posted online a week in advance at www.opalco.com/about/board-of-directors/board-meetings” www.opalco.com/about/board-of-directors/board-meetings.
New tariffs and fees are at www.opalco.com/members/rates-tariffs/.
