It's Electrifying! - February 13, 2008

IT'S ELECTRIFYING!

Orcas Power and Light Cooperative will be holding a board meeting on Thursday, February 21st at the Eastsound Fire Station. At this meeting, the directors will be considering an approximate 4% rate increase to the basic and energy usage charges to be effective March 2008.

This increase is in compliance with OPALCO’s Revenue Requirement Model in our Long Range Plan. The funds will be used to replenish OPALCO’s financial reserves, address Bonneville Power Administration’s (BPA) wholesale power cost increase, keep up with inflation, and cover operational and capital improvement expenditures. These capital improvements will be used in OPALCO’s ongoing efforts to maintain our infrastructure and improve reliability.

Other utilities in the Northwest are finding themselves in similar situations. At a recent conference of Northwest state regulators addressing upward trends in electric rates and costs, Washington Utilities and Transportation Commission representative Mark Sidran stated “there will be, for the foreseeable future, considerable upward pressure on rates . . . certainly for electricity.” He added that this reflects the “considerable capital needed for infrastructure and reliability investments, load-growth requirements, increasing material and fuel costs for new generation and transmission/distribution systems, and policies such as renewables portfolio standards and greenhouse-gas reductions.” On February 6th, OPALCO General Manager Randy Cornelius heard this message reiterated in a speech by BPA Executive Director Steve Wright.

All of us at OPALCO understand the effects of rising costs. We make every effort to use the capital we receive through rates in the most cost effective way, while keeping in mind that keeping costs down and system reliability are the highest priorities for our members.

How will this affect your electric bill? If the board approves this increase, an average residential member’s bill (assuming 1,000 kWh per month consumption) will increase as follows:

Today’s Rate 3/1/08 Rate Difference

Basic Charge $24.50 $25.50 $1.00

kWh Charge $72.90 $75.80 $2.90

Total Monthly Bill $97.40 $101.30 $3.90

One way to keep costs down is to practice energy efficiency – purchasing Energy Star products as well as weatherproofing and insulating your buildings are a few examples that can reduce your power bill. To learn more about energy saving ideas, please feel free to call Martha Warachowski, OPALCO’s Energy Management Coordinator, at 376-5371.

OPALCO is proud of the fact that 97% of our energy mix is greenhouse gas free - we want you to use our clean electrical energy… and we want you to use it efficiently.

Joining the OPALCO Ambassador Program, a grass roots movement to track and influence legislation that impacts our cooperative in Olympia and Washington, D.C. will help to insure that your voice is heard where it matters – before legislation is enacted. To learn more about OPALCO’s Ambassador Program, call Bev Madan at 376-3549 (email bmadan_at_opalco_dot_com).

OPALCO
Member Owned & Operated

	Today’s Rate	3/1/08 Rate	Difference
Basic Charge	$24.50	$25.50	$1.00
kWh Charge	$72.90	$75.80	$2.90
Total Monthly Bill	$97.40	$101.30	$3.90