Local electricity bills are set to increase by $4 a month for residential members beginning in November, Oregon Trail Electric Cooperative announced Monday in a news release.

According to the release, the Bonneville Power Administration, from which OTEC buys hydroelectricity, will be raising the cooperative’s cost of power by 3.97%. A Cost of Service study conducted by an independent consultant concluded that OTEC must increase its rates to ensure the cooperative recovers enough revenue to sustain business operations for the long term.

During the August and September board meetings, the OTEC Board of Directors approved an average rate increase of 2.71%. Rate increases vary by class. For OTEC’s 22,000 residential members, the increase will be shown in the monthly delivery charge, increasing the charge by $4 from $29.50 to $33.50 effective with bills rendered on or after Nov. 1. The energy rate per kilowatt hour will remain unchanged for residential members.

Anthony Bailey, OTEC’s chief operating officer, said the delivery charge increase will have less impact on members than an energy per kilowatt hour rate hike because the increase will remain the same regardless of the amount of energy used. This will be especially beneficial in the winter when energy use increases significantly.

“There is a lot more risk (when rates are increased),” Bailey said.

Sandra Ghormley, director of member services, said the increase was announced now to give time for members to adjust.

“We wanted to give members time to prepare for the change,” she said.

Providing safe and reliable service to its members at competitive rates remains a priority for OTEC, according to the news release, which stated that the cooperative has limited its cost increases to 0.95% on an annual basis over the past 15 years, while overall inflation has increased in excess of 2% annually for the same period.

OTEC is a not-for-profit, member-owned electric cooperative that serves more than 31,000 homes and businesses in Union, Baker, Harney and Grant counties. Headquartered in Baker City, OTEC has district offices in La Grande, Burns and John Day.