OTEC retires capital credits – returns $3 million to member-owners!
By Garrett Christensen on Tuesday, December 17th, 2024 in More Top Stories Northeastern Oregon News
BAKER CITY – (Release from Oregon Trail Electric Cooperative) At their October Board meeting, the Oregon Trail Electric Cooperative’s (OTEC) Board of Directors approved the retirement of $3.0 million to OTEC member-owners as part of the co-op’s capital credits program. Since OTEC first began issuing capital credits in 1996, we have returned $58 million in total refunds to our member-owners.
2024 brought challenges including severe winter storms which highlighted the importance of the base electric load provided from the incredible network of hydroelectric dams of the Pacific Northwest. This summer brought an intense wildfire season to Oregon, including over 1.25 million acres in and around OTEC service territory which underscores the importance of OTEC’s fire mitigation programs and our support of rural fire districts through our Member-to-Member Bill Round Up Program.
“Despite several challenges this year, OTEC managed to maintain competitive rates by maximizing efficiencies and controlling costs, which enables us to retire capital credits,” stated Les Penning, Chief Executive Officer of OTEC. “Our business model prioritizes reliable service and competitive rates for our member-owners rather than generating profits.”
Capital credits represent each member-owner’s share of OTEC’s margins (revenues) earned during the year. Each year, after operating expenses have been paid, the remaining margins are allocated to the member’s capital credit account based on their billed amount from previous years.
Member-owners with accounts in good standing will receive their Capital Credit refunds in the form of a check or bill credit by the end of 2024, just in time for the holidays.
If you have an OTEC electric meter, you are an OTEC member-owner who is building equity in the co-op, which is reflected in your capital credit account. The fact that OTEC has consistently retired capital credits for 28 consecutive years and returned those funds to our member-owners and our communities showcases the value of having a cooperative compared to other forms of utility providers.
For more information on capital credits, please visit otec.coop/capital-credits or contact OTEC at 541-523- 3616.
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.
