OTEC announces first rate hike since 2019
Published 3:13 pm Monday, February 24, 2025
- Oregon Trail Electric Cooperative lineman Chris Price clears a limb that fell on a power line in north Baker City on Wednesday, Sept. 7, 2022.
For the first time since October 2019, Oregon Trail Electric Cooperative is raising power rates, starting with April bills.
The increase will average 9.5%, but will differ slightly depending on a customer’s rate class.
The rate hike is prompted by the Bonneville Power Administration’s decision to increase its wholesale power rates, as well as by rising costs for materials, transportation, fuel, labor and wildfire mitigation, according to a press release from OTEC.
The cooperative buys all of its power from BPA, the federal agency that sells power produced at dams on the Columbia and Snake rivers.
For residential bills, the delivery charge will increase from $33.50 to $38.50 per month while the energy cost per kilowatt hour will increase from $.06797 to $.07259. For the average OTEC residential member-owner, who uses 1,033 kilowatt-hours per month, their monthly bill will increase by $9.77, from $103.71 to $113.49.
OTEC raised the monthly delivery charge for its residential customers by $4 on Oct. 1, 2019. The cost per kilowatt-hour didn’t increase then.
“The OTEC board of directors did not make this decision lightly, carefully considering the various contributing factors and conducting thorough evaluations before concluding a rate increase was necessary,” according to a press release from the cooperative, which is based in Baker City and has customers in Baker, Union, Grant and Harney counties. “This move comes as part of the cooperative’s ongoing efforts to maintain and improve its services, ensuring it can continue to meet the growing energy demands of its member-owners while keeping the system reliable and efficient. The board’s deliberations reflect a commitment to the cooperative’s long-term sustainability, balancing the need for financial stability with the best interests of the communities and member-owners it serves.”
OTEC officials said in December that BPA’s announcement Dec. 9 that it was proposing to increase its power rates by 10.8% starting Oct. 1, 2025, could result in OTEC passing on some of the increase to its members.
Wholesale power costs from BPA accounts for almost half of OTEC’s expenses, according to the press release.