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

OTEC in a press release Tuesday, Dec. 12, explained capital credit retirements are one of the more visible benefits of membership in an electric cooperative.

“Our business model allows us to focus on providing reliable service and competitive rates to our membership, not on making profits,” Chief Executive Officer Les Penning said.

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 $55 million back to its members and communities.

“If you have an OTEC electric meter, you are a member-owner who is building equity in the co-op, which is reflected in your capital credit account,” Aletha Bonebrake, president of OTEC’s board, said. “The fact that we have been able to retire capital credits for 27 years in a row and return these funds to our ownership and our communities highlights the value of having a cooperative over other forms of utility providers.”

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.

OTEC also announced it will not raise its rates this winter.

“We will continue to work to hold the line on keeping our members’ rates competitive. OTEC has not had a rate increase since 2019,” Penning said. “As your member-owned and governed co-op, we are structured to focus on the best interest of … our member-owners.”

Oregon Trail Electric Cooperative serves nearly 60,000 residents in four counties in Eastern Oregon.