OTEC Retires Capital Credits for 27th Consecutive Year
By Joe Hathaway on Wednesday, December 13th, 2023 in More Top Stories Northeastern Oregon News
BAKER CITY — Last month, Oregon Trail Electric Cooperative’s (OTEC) Board of Directors approved the return of $3.0 million to member-owners as part of the co-op’s capital credits program. Since OTEC first began retiring capital credits in 1996, we have returned $55 million in total refunds to our member-owners.
“This year has presented many challenges, some of which can be felt by us all every day, things like inflation and economic uncertainty. Other challenges pose future threats to our stability and costs such as additional fire mitigation efforts and threats to our actual power supply. Yet, through it all, OTEC has been able to keep rates down by maximizing efficiencies and controlling costs, which is what makes these capital credit refunds possible,” said Les Penning, Chief Executive Officer of OTEC. “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 (revenues) 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.
Capital Credit checks will be mailed in mid-December, just in time for the holidays. Returns of less than $15 are not mailed but are applied to the member’s account.
“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,” said Aletha Bonebrake, President of OTEC’s Board of Directors. “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.”
In addition to the good news of capital credit refunds, OTEC is also announcing that it will not raise its rates this winter, even as energy costs continue to climb across the nation. “We will continue to work to hold the line on keeping our members’ rates competitive. OTEC has not had a rate increase since 2019 and we are pleased to announce that we will not be raising rates this winter.” Penning added, “As your member-owned and governed co-op, we are structured to focus on the best interest of you, our member owners.”
For more information on capital credits, please visit otec.coop/capital-credits or call OTEC at 541-523- 3616.
