Oregon Trail Electric Cooperative, the member-owned cooperative that serves parts of Baker, Union, Grant and Harney counties, announced Dec. 13, 2024, the retirement of $3 million to OTEC member-owners as part of the co-op’s capital credits program.

BAKER CITY — In a year when the word “inflation” has been ubiquitous, Oregon Trail Electric Cooperative is bucking the trend of escalating costs.

OTEC, the member-owned cooperative that serves parts of Baker, Union, Grant and Harney counties, is keeping its power rates steady for the third straight year.

OTEC typically makes any changes to its rates in the fall, with new rates in effect for the next year.

“We are fortunate to say we have not raised rates since 2019 and will not be raising rates this winter,” said Les Penning, the cooperative’s CEO. “OTEC has seen increases in our costs, as many businesses have, but will continue to work to hold the line on keeping our members’ rates competitive.”

Those increasing costs include fuel and other supplies, according to Joe Hathaway, OTEC’s communications manager.

“Like all businesses we’ve had to deal with higher fuel costs and supply chain issues,” Hathaway said.

But OTEC’s single biggest expense — buying electricity from the Bonneville Power Administration — has stayed steady.

BPA, the federal agency that sells power produced at dams on the Columbia and Snake rivers, announced in mid-November it is not increasing wholesale power rates.

“This is one of those bountiful years where all the elements and timing came together in such a manner that we can consider staving off inflation for another two years by keeping rates flat for our power and transmission customers,” BPA Administrator John Hairston said in a press release.

The agency plans to keep rates level through 2025.

Buying power from BPA accounts for half of OTEC’s annual costs, Hathaway said, so changes in BPA’s rates typically lead to adjustments in OTEC’s rates.

BPA last increased its wholesale rates in 2019, which was also the most recent year that OTEC boosted its rates.

Hathaway said OTEC managers talk frequently with BPA officials, and the agency’s announcement that it is keeping its rates level, though expected, was also “welcome news, of course.”

OTEC’s level rates are in sharp contrast to the cost for natural gas.

Avista Utilities, which serves Union County, increased its residential rates by 18.4% starting Nov. 1.

BAKER CITY — Oregon Trail Electric Cooperative’s Board of Directors has approved the return of $3 million in capital credits to its member-owners.

OTEC in a press release Wednesday, Nov. 30, explained capital credit retirements are one of the more visible benefits of membership in an electric cooperative.

“Our competitively priced, clean power supply along with our continued efforts to maximize efficiencies and control costs make these refunds possible,” Chief Executive Officer Les Penning said. “Our business model allows us to focus on providing reliable service and competitive rates to our membership, not on making profits.”

Capital credits are each member-owner’s share of OTEC’s margins earned during the year. Each year, after operating expenses have been paid, the remaining margins are returned to the member’s capital credit account based on the amount they were billed during previous years. Since OTEC first began retiring capital credits in 1996, the co-op has returned $52 million back to its members and communities, the release stated.

“As capital credits reflect each member’s ownership in the cooperative, it’s a great achievement to reach the $50 million milestone,” OTEC’s Board of Directors President Wayne Overton said. “It’s important for us to demonstrate to our members what it means to be a cooperative. What better way to demonstrate that than to return capital credits?”

Returns are applied directly to the member’s account if the amount is less than $15. Members with returns greater than $15 and no past due accounts will receive a check in the mail in mid-December.

— The Observer