Rising costs prompt OTEC to increase rates by average of 4.4%

By on Tuesday, February 10th, 2026 in More Top Stories Northeastern Oregon News

BAKER CITY, LA GRANDE, JOHN DAY, & BURNS — Folks in Baker, Union, Grant, and Harney counties will see, on average, a 4.4% increase to their Oregon Trail Electric Cooperative (OTEC) power bills beginning in April of this year. OTEC officials cite, โ€œThis change is necessitated by increased costs associated with power purchased from Bonneville Power Administration (BPA), along with the rising costs of materials, transportation, labor, and ongoing investments in system maintenance and improvements.โ€

The co-op explains the average residential member-owner will see a monthly increase between $5 and $6.

Find OTECโ€™s full press release below:

(Press Release from Oregon Trail Electric Cooperative)

Oregon Trail Electric Cooperative (OTEC) is announcing a rate increase in which member-owners will see reflected in their April bills. This increase will average 4.4% but will differ slightly depending on your rate class. This change is necessitated by increased costs associated with power purchased from Bonneville Power Administration (BPA), along with the rising costs of materials, transportation, labor, and ongoing investments in system maintenance and improvements.  

The OTEC board of directors did not make this decision lightly, but carefully considered the various contributing factors and conducted thorough evaluation before they concluded a rate increase was necessary for the financial stability of the cooperative. This move comes as part of the cooperativeโ€™s ongoing efforts to maintain and improve its services, ensuring it can continue to meet the growing energy demands of its member-owners while keeping the system reliable and efficient. The boardโ€™s deliberations reflect a commitment to the cooperativeโ€™s long-term sustainability, balancing the need for financial stability with the best interests of the communities and member-owners it serves.  

As a member-owned, not-for-profit electric utility, Oregon Trail Electric Cooperative (OTEC) proudly serves its member-owners by providing clean, reliable energy at competitive rates. OTEC remains committed to keeping rates as low as possible while providing excellent service to itsโ€™ member-owners.  

OTEC buys 100% of its power from BPA and 85% of that power is clean, renewable hydropower generated by the dams in the Pacific Northwest. Wholesale power costs account for nearly 50% of OTEC expenses. The timing and magnitude of BPA rate increases are outside of OTEC control but have a significant impact on operating costs which in-turn, affects rates for OTEC member-owners.  

The increased BPA rates, coupled with the rising costs to nearly everything (materials, transportation, fuel, labor, and wildfire mitigation efforts) has made it necessary to implement a rate increase which will impact all rate classes. This change will result in an average 4.4% rate increase differing by rate class.  

For residential bills, the energy cost per kilowatt hour will increase from $.07259 to $.077766. For the average OTEC residential member-owner, who uses 1,009 kWh per month, their monthly bill will increase by $5.22, from $114.98 to $120.20. The new rates will be reflected on April bills.

Please visit otec.coop/rates to view the new rates for each rate class, see how OTEC rates compare, and access rate calculators to see how the new rates will affect your bill.  

While news of rate increases are never easy, OTEC assures member-owners of the continued value and reliability of its services. OTEC continues to invest in maintaining, hardening and improving our system and deploying technological advancements to improve system reliability and shorten outage times.  

OTEC also continues to offer energy-efficiency programs to help you save both energy and money (visit the Energy Solutions tab on the OTEC website to learn more).