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FOR IMMEDIATE RELEASE — Monday, February 24, 2025
HED: OTEC Announces First Rate Increase in Over Five Years
Baker City, Oregon (OTEC) – For the first time in more than five years, Oregon Trail Electric Cooperative (OTEC) is announcing a rate increase which member-owners will see reflected in their April bills. This increase will average 9.5% but will differ slightly depending on your rate class. This change is necessitated by increased costs associated with power purchased from Bonneville Power Administration (BPA), along with the rising costs of materials, transportation, labor, and ongoing investments in system maintenance and improvements.
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. 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.
As a member-owned, not-for-profit electric utility, Oregon Trail Electric Cooperative (OTEC) proudly serves its member-owners by providing clean, reliable energy at competitive rates. Unlike investor-owned utilities, whose primary goal is to generate profits for shareholders, OTEC remains committed to keeping rates as low as possible while providing excellent service to its’ member-owners.
OTEC last implemented a rate increase in November 2019, an overall 2.71% increase that affected each rate class differently. It included a $4 increase to the delivery charge for each residential member-owner, with no increase to our kilowatt-hour charge.
OTEC buys 100% of its power from BPA. 85% of that power is clean, renewable hydropower generated by the dams in the Pacific Northwest. Wholesale power costs account for nearly 50% of OTEC expenses. The timing and magnitude of BPA rate increases are outside of OTEC control but have a significant impact on operating costs which in-turn, affects rates for OTEC member-owners.
The increased BPA rates, coupled with the rising costs to nearly everything (materials, transportation, fuel, labor, and wildfire mitigation efforts) has made it necessary to implement a rate increase which will impact all rate classes. This change will result in an average 9.5% rate increase differing by rate class. For residential bills, the delivery charge will increase from $33.50 to $38.50 while the energy cost per kilowatt hour will increase from $.06797 to $.07259. For the average OTEC residential member-owner, who uses 1,033 kWh per month, their monthly bill will increase by $9.77, from $103.71 to $113.49. The new rates will be reflected on April bills.
Please visit otec.coop/rates to view the new rates for each rate class, see how OTEC rates compare, and access rate calculators to see how the new rates will affect your bill.
While news of rate increases are never easy, OTEC assures member-owners of the continued value and reliability of its services. OTEC continues to invest in maintaining, hardening and improving our system and deploying technological advancements to improve system reliability and shorten outage times. OTEC also continues to offer energy-efficiency programs to help you save both energy and money (visit the Energy Solutions tab on the OTEC website to learn more).
About the cooperative
Oregon Trail Electric Cooperative (OTEC) is a not-for-profit, member-owned electric cooperative that serves nearly 60,000 residents in four counties in Eastern Oregon. Headquartered in Baker City, OTEC has district offices in Burns, John Day, and La Grande.