OTEC’s Proposed purchase of Idaho Power’s Oregon Territory

Idaho Power’s Oregon Customers To Join Oregon Trail Electric Cooperative

We’re excited to announce that Oregon Trail Electric Cooperative (OTEC) has entered into an agreement to assume ownership of Idaho Power’s Oregon service territory. If approved, this would mean OTEC would expand to serve more Eastern Oregon communities.

Oregon represents a very small portion of Idaho Power’s business (less than 3% by 2030), and reducing the complexity of operating in two states will help them focus on Idaho’s growing population and energy demand.

Because OTEC’s existing service territory is already connected to Idaho Power’s Oregon operations, we’re in a strong position to welcome these new members and support them efficiently. This acquisition gives us a unique opportunity to strengthen and expand the service we provide to our members.

Read the Joint Press Releases

Read the Mailer

Special Edition Mailer - April 2026 (3.17 MB)

Frequently Asked Questions

Updated 10/31/2026

Why OTEC?

OTEC already operates in adjacent communities and can use existing service centers, crews and equipment while continuing to use the lines and equipment Idaho Power is selling. The proposed purchase would add an Ontario service center and make transitioning households and businesses member-owners of a not-for-profit cooperative, with a vote in Board elections and the benefit of capital credits. The benefit for transitioning member-owners is that OTEC operates at cost: rates recover the cost of providing service, with no added return for outside shareholders. Over the long term, current member-owners benefit as fixed operating costs are shared across a larger membership.

Your voice on the Board

The proposed plan adds four seats for a new Malheur District, expanding the Board from nine to thirteen directors. Transitioning member-owners in Baker and Harney counties would also be represented through OTEC’s existing Baker and Harney districts and could run for open seats if they meet the director qualifications. The expansion of the Board requires necessary bylaw amendments, approvals and closing of the transaction.

Yes. Current OTEC member-owners would vote on the proposed bylaw amendments by mail or in person, with the result announced at a special membership meeting. OTEC plans to hold that vote while the Oregon Public Utility Commission is still reviewing the sale (Docket UM 2447). Completing the bylaw change first positions the Cooperative to run an election and seat new directors as quickly as possible once the sale is approved.

OTEC plans for transitioning member-owners to participate in the 2027 election, which would take place after closing. The proposed election would include the four seats for the new Malheur District, along with the regularly scheduled Union, Baker and Grant positions. That means five of the seven directors elected in 2027 would represent districts that include transitioning member-owners. A transitioning member-owner could also run for an open seat in 2027 if closing occurs in time for the person to become a member-owner and meet the nomination deadlines and director qualifications. Candidate information would be available through OTEC’s website, communications channels and district offices.

The Board used member-owner count as the principal measure, with meter counts, population, geography and permanent versus part-time residency also considered. That starts with one of the core cooperative principles, one member, one vote, a principle written into Oregon’s cooperative law as well: each member-owner gets one vote at a membership meeting, no matter how much electricity they use. A homeowner in Ontario would have exactly the same vote as a large industrial facility. Because every member-owner counts equally, the number of member-owners in a district is the fairest way to decide how many directors represent it.

Rates and the purchase price

The base purchase price was negotiated between OTEC and Idaho Power with the assistance of an outside valuation adviser, who used several standard valuation methods to formulate an analysis and determine fair market value. The adviser’s public reply testimony states that the fair market value remains above the $154 million base price. The fair market value of Idaho Power’s Oregon electric distribution system is not the same as its accounting book value (gross plant less depreciation). The valuation analysis supports the purchase price even after corrections and adjustments raised during review, plus additional capital work to be completed through closing. The purchase price remains subject to the agreement’s closing adjustments.

Yes, in 1988 the Commission considered OTEC’s purchase of CP National’s Oregon electric system in Docket UP 43. In evaluating competing rate estimates, it considered longer-term service costs and concluded that customers would be no worse off and could be substantially better off under OTEC, although that historical decision does not decide the current proposal.

A cost-of-service study has two main purposes. The first is to calculate the total annual revenue needed to cover OTEC’s full cost of operations (the revenue requirement). As a cooperative, OTEC operates on a not-for-profit or at-cost basis, aiming to generate just enough margins (revenue less expenses) to reinvest in OTEC’s electric system and pay capital credits. Costs that need to be covered include wholesale power costs, all costs incurred to serve and deliver power to OTEC’s member-owners, depreciation, debt service (interest expense and principal payments) and taxes. The second purpose is to assign those costs among the rate groups being served, such as residential, agricultural, commercial and industrial member-owners, to determine the revenue allocation required for each group. OTEC already uses this tool to set rates for its current member-owners. OTEC will use a third-party consultant to complete the study of the combined system 18–24 months after closing. The timing is essential because the study must use OTEC’s own actual operating and usage data. The study would then inform Board decisions about rates and cost allocation between rate classes. OTEC has also committed not to change base rates or make other major decisions affecting the acquired territory until its new directors are seated; the only exceptions are the annual power cost adjustment, which passes through changes in power costs, and cost recovery for events beyond OTEC’s reasonable control, such as wildfire or major storms. Those directors are expected to be seated in 2027, well before the study is finalized, so they can participate in those decisions.

Staffing, reliability, and service centers

OTEC’s reliability record is generally more favorable than that of Idaho Power’s Oregon system; the full comparison is in OTEC’s public testimony with the Commission (Docket UM 2447). OTEC also expects response times to be shorter in parts of the acquired territory because crews would be dispatched from nearby OTEC service centers, including the planned Ontario service center. For example, Idaho Power currently dispatches to the Richland and Halfway area from Payette, Idaho; OTEC would dispatch from Baker City. Historical averages cannot guarantee the restoration time for an individual outage.

OTEC will fully staff the new Ontario service center, with dedicated lineworkers based in Ontario. Existing crews in Baker City, John Day and Burns will support adjacent areas of the acquired territory. Staffing will continue to be evaluated as OTEC gains operating experience in the territory. Contractors under existing master service agreements would provide further support, along with mutual-aid agreements with 18 Oregon electric cooperatives and the Bonneville Power Administration for emergencies. If hiring is not complete at closing, Idaho Power would provide interim operational support under the Transition Services Agreement.

Richland and Halfway would be served from Baker City, Drewsey and Juntura from Burns, and the rest of Malheur County from the planned Ontario center. The operating plan also assigns portions of the acquired system to John Day and allows crews to support work across district boundaries as needed.

The Ontario service center will also include an office staffed with member service representatives, staking technicians who design new service connections, and rotating energy services experts to directly support and serve Ontario and the surrounding communities.

Power supply

Idaho Power would supply the territory through September 30, 2030, with the same power supply that territory is receiving today, with an option to extend for up to four more years if both parties agree. OTEC currently plans to begin supply from the Bonneville Power Administration (BPA), the federal agency that markets power from the Columbia River dams, on October 1, 2030, with the transmission arrangements needed to deliver it. That supply would be BPA’s Tier 2 product, which serves load above a utility’s Tier 1 allocation and is priced at what it costs BPA to supply it. OTEC would continue evaluating other reasonable options, including the flexibility within its BPA contract to add long-term non-federal power contracts.

Current OTEC member-owners would continue to receive the power supply they always have: BPA’s Tier 1 allocation of low-cost federal hydro, with Tier 2 power filling the portion of load above that allocation as needed. BPA’s Tier 1 allocations are already committed, and OTEC’s existing load already exceeds its allocation, so the acquired territory would be served with Tier 2 power at the Tier 2 rate. Available surplus federal hydro can contribute to BPA’s long-term Tier 2 supply, but the acquired territory would not receive its own Tier 1 allocation. OTEC expects this supply to be competitively priced. Its public testimony includes a year-by-year comparison of Idaho Power’s total power supply rate and BPA’s Tier 2 rate from 2015 through 2026: BPA’s Tier 2 rate was lower than Idaho Power’s in ten of those twelve years and higher in the two most recent years. No utility can guarantee future power prices, but because BPA charges at cost, its rates can also come down when its costs do.

Wildfire safety

Both utilities use risk-based wildfire plans that include inspections, vegetation management, weather monitoring, system improvements, community coordination and Public Safety Power Shutoff procedures, meaning planned shutoffs during extreme fire risk weather. OTEC’s and Idaho Power’s approaches are largely similar, with some operating differences.

Help paying your bill

Yes, OTEC proposes a bill discount program for eligible transitioning member-owners for at least the initial Idaho Power Sales Agreement term, through September 30, 2030, to lessen the impact of program changes through the transition. The proposal includes income verification through Community Action Program agencies, periodic recertification and a free residential energy efficiency audit, with ongoing program needs and performance reviewed.

OTEC proposes several protections from disconnection for nonpayment. Transitioning member-owners would have a six-month suspension of nonpayment disconnections after closing. In winter, all OTEC member-owners would be protected when the forecast daily high is 32°F or below, and qualifying households in the acquired territory would have a December 1 through March 31 protection that follows Idaho Power’s current eligibility criteria. In summer, qualifying transitioning member-owners would not be disconnected for nonpayment on any day the National Weather Service issues a heat advisory, heat watch or heat warning, or on any day wildfire smoke pushes the forecast or actual Air Quality Index above 100. These protections postpone disconnection; they do not erase the amount owed.

Yes, OTEC proposes free residential energy efficiency audits initially for bill discount program participants in the acquired territory, performed by OTEC-hired contractors. The audit would be a participation requirement intended to identify opportunities to reduce long-term electricity use and bills. Member-owners who are not part of the bill discount program can use the do-it-yourself home energy audit in OTEC’s Energy Efficiency Center at otec.coop/energy-efficiency-center. All member-owners will have access to the same residential energy efficiency rebates.

Yes, OTEC plans to extend energy efficiency programs to the acquired territory, with support for residential, business, agricultural and income-qualified member-owners. OTEC’s programs are generally comparable to the ones Idaho Power offers today, so member-owners should not see significant changes in the programs available. The transferred energy efficiency obligation would be tracked separately, with the associated amounts dedicated to energy efficiency programs in that territory.

Staying informed

OTEC plans to share program details as they are finalized and maintain updates on its Idaho Power information page, otec.coop/IdahoPower. After state approvals and before closing, transitioning member-owners would receive welcome boxes with program information; OTEC would also continue coordinated communications with Idaho Power while current member-owners receive updates through Ruralite and existing channels. Any changes will be communicated in advance; there will be no sudden change for incoming or existing member-owners.

Other Frequently Asked Questions

Posted 5/21/2026

Oregon Trail Electric Cooperative (OTEC) is one of Oregon's largest distribution cooperatives. Headquartered in Baker City, with district offices in La Grande, John Day, and Burns, OTEC serves approximately 32,000 meters and nearly 60,000 residents across Baker, Grant, Harney, and Union counties. OTEC operates roughly 3,000 miles of overhead and underground line. The distribution system represents an investment of more than $196 million.

OTEC was founded in 1988 by three Baker City community members who collected seven hundred pennies, one from each of 700 neighbors, to demonstrate community support and secure a loan from the National Rural Utilities Cooperative Finance Corporation (CFC). Nearly four decades later, the same partnership is funding the next chapter.

Oregon represents a small portion of Idaho Power's business, and reducing the complexity of operating in two states allows Idaho Power to focus on Idaho's growing population and energy demand. Because OTEC's existing service territory is adjacent to Idaho Power's Oregon operations, OTEC is well positioned to welcome these customers as member-owners and serve them efficiently. Increasing membership also gives OTEC additional economies of scale. Utilities carry significant fixed costs, and a larger membership spreads those costs across more member-owners, which supports price stability over time.

Without the sale, Idaho Power would likely need to file for a general rate increase of at least 17% to recover its current cost of service. Capital investments and inflation have increased Idaho Power's service costs, and Idaho Power has not raised base rates in Oregon since 2024. With the sale, OTEC would need to recover the investment already made in the system and charge transitioning member-owners approximately 5.7% more than their current Idaho Power rates at closing. Either path forward requires some rate adjustment to reflect the current cost of service.

Not at closing. For all rate classes, the same monthly service charge that appears on Idaho Power bills today will continue for transitioning member-owners. The energy portion of the bill will adjust as described above. Idaho Power's existing two-tier energy rate structure will also continue for transitioning member-owners after closing.

Not immediately at closing. OTEC will hold rate structures separate during the transition and initiate a cost-of-service study after the first year of serving transitioning member-owners to determine the right path to a single, unified OTEC rate schedule for both legacy and transitioning member-owners. There is no fixed timeline for full rate convergence.

OTEC will purchase wholesale power from Idaho Power through a multi-year power supply agreement. OTEC's Power Cost Adjustment (PCA) rate schedule passes wholesale power cost changes through to retail rates on an annual cycle, the same way Idaho Power handles power costs for its Oregon customers today, and the same way OTEC already handles power costs for legacy member-owners.

Any deposit currently held by Idaho Power for Oregon customers' service will be returned to you during Idaho Power's final billing process. OTEC's own deposit policy will be waived at closing for transitioning member-owners. This is a one-time accommodation for the change of service provider. OTEC's standard deposit policy will apply to all member-owners going forward.

OTEC will honor the structure you have today. There are two groups:

Idaho Power legacy net metering customers (enrolled before June 1, 2024): your existing net metering structure is honored through the full term of your agreement.
Idaho Power net billing customers (enrolled after June 1, 2024): you will transition to OTEC's net metering program. OTEC provides one-to-one billing credits at the full retail rate, with any generation that exceeds usage at the end of the billing month credited at OTEC's avoided cost. All generation in a given month offsets usage that month, regardless of when the energy is generated. OTEC's avoided-cost rate is not tied to usage time or peak hours.

If you have an existing Solar PV Pilot (Schedule 88) contract with Idaho Power, you should have received a letter from Idaho Power in March 2026 explaining what to expect through the transaction. If your contract expires before the transaction closes, Idaho Power will continue to serve you, administer your agreement, and communicate your transition options directly. When the transaction closes, OTEC will assume any remaining contracts and honor each through its stated term. As contracts near expiration, OTEC will share transition options, including enrollment in OTEC's net metering program.

The Community Solar Program will transfer to OTEC. Both the Generator Interconnection Agreement and the Power Purchase Agreement with Idaho Power's existing Community Solar Project, Verde Light Community Solar, will be assigned to OTEC at closing. After closing, OTEC will continue paying community solar credit rates to current subscribers and will administer the project under OTEC's Community Solar program.

Yes. Several programs will be available to transitioning member-owners:

Capital credits: As a member-owner of OTEC, you will have a capital credit account. Each year, OTEC allocates revenue above what it takes to operate the business, or margins, to these capital credit accounts. As the accounts grow over time and certain financial conditions are met, the Board of Directors may approve a retirement of a portion of those capital credits. OTEC returns those retirements directly to you. In 2025, OTEC returned $3 million in retired capital credits to member-owners. Learn more at otec.coop/capital-credits.
OTEC Member Foundation Scholarships: Available to graduating high school seniors, returning college students and adults, trade school attendees, and line school students. The program also includes Dolly Parton's Imagination Library, a free monthly book program for children from birth to age five. Students attending Eastern Oregon University (EOU) for all four years are also eligible to apply for a four-year, all-tuition-and-fees-paid scholarship.
Member-to-Member Bill Round Up: As a member-owner, you have the option to round your bill up to the next dollar. This program supports community organizations and member bill assistance.
Co-op Connections discount program: purchase discounts at local and national businesses.
Charitable contributions and sponsorships: for community partners, nonprofits, local events, and schools across the territory.

Idaho Power's Bill Discount Program provides tiered bill discounts to qualified low-income customers based on their self-reported income levels. While OTEC is committed to helping member-owners manage their electric bills through an array of supportive offerings, OTEC does not have a Bill Discount Program.

OTEC offers a range of programs that help member-owners manage their energy use and bills, and that have proven effective at helping member-owners avoid disconnection for non-payment. These programs include levelized billing, budget billing, prepaid metering, payment plans, and energy efficiency assistance. OTEC prioritizes tools that help member-owners manage their bills while minimizing cost shifting between member-owner groups.

In addition, OTEC will provide two temporary protections for transitioning member-owners: a six-month suspension of non-pay disconnects and a deposit waiver. These temporary protections support a steady transition to OTEC service for all transitioning member-owners.

Project Share, which is administered by The Salvation Army, continues to be available to Idaho Power customers until closing. Post-closing, member-owners will have access to bill assistance through LIHEAP and OTEC's member-owner donation program. The member-owner donation program lets member-owners contribute funds to assist neighbors in need, such as those with overdue bills or facing disconnection for non-payment.

OTEC operates an in-house Energy Efficiency program. The energy services team works directly with member-owners on residential, commercial, industrial, and irrigation rebates, and uses BPA's engineering team for support on custom rebates. OTEC also offers self-funded rebates to meet member-owner needs that fall outside standard BPA programs. See otec.coop/energy-efficiency-center for more details.

The same place it comes from today, for now. Under the sales agreement with Idaho Power, OTEC will continue purchasing wholesale power to serve transitioning member-owners through September 30, 2030.

Long-term, OTEC's plan is to transition the acquired service territory to Bonneville Power Administration (BPA) supply. The specific power-mix designation will depend on BPA tier availability at the time of transition.

Current OTEC member-owners continue to receive 100% of their power from BPA.

Boardman to Hemingway (B2H) is a 500 kV transmission line under construction between Boardman, Oregon, and the Hemingway substation in Owyhee County, Idaho. B2H is not part of the transaction, and Idaho Power will remain the owner of B2H. Today, transmission capacity between Bonneville Power Administration (BPA) and Idaho Power is fully subscribed, meaning there is not enough transmission line to move large blocks of BPA hydropower from the Northwest grid into eastern Oregon at scale. B2H solves that. It is the infrastructure that makes OTEC's planned BPA transition possible for transitioning member-owners. B2H is projected to be in service by late 2030.

In addition to providing wholesale power to OTEC for transitioning member-owners, Idaho Power will retain:

● Most Oregon high voltage transmission assets (above 100 kV).

● All Oregon generation assets, including the Hells Canyon Complex (Oxbow Dam, Brownlee Dam, Hells Canyon Dam) and the associated FERC license, fish hatchery, habitat management, recreation, and water-quality programs.

● Key Oregon substations that primarily serve Idaho customers.

The transaction is in regulatory review. Three approvals are required:

Oregon Public Utility Commission (OPUC): under review
Idaho Public Utilities Commission (IPUC): under review
Federal Energy Regulatory Commission (FERC): approved

The Asset Purchase Agreement was signed February 13, 2026, and a request was filed with the OPUC on May 20, 2026 for approval of the transaction. FERC has approved the sale. OTEC is now waiting for approval from the Oregon and Idaho commissions, and expects regulatory review to take at least nine months from filing. Closing will follow those approvals. Member-owners will know the closing date well in advance.

Posted 5/21/2026 - Updated 11/3/2026

OTEC's four district offices in Baker City (headquarters), La Grande, John Day, and Burns will support transitioning member-owners in their areas. OTEC is also opening an Ontario office and service center to provide local response, maintenance, reliability support, and community presence across Malheur County. OTEC will hire employees for the Ontario service center. OTEC's proximity to the transferred service territory allows crews to be dispatched quickly to respond to outages and system emergencies.

Several ways, all already in use by current member-owners:

In person at any OTEC district office
Pay by phone (541-523-3616) via OTEC's automated business center, or speak with a member representative during business hours
MY OTEC App (download via Apple App Store or Google Play Store)
OTEC's online account portal at ebill.otec.coop
Payment kiosks with 24/7 access at all OTEC office locations, a John Day grocery store, and a Baker City truck stop, with an additional kiosk planned for the transferred service territory
Mail to OTEC headquarters
Automatic bank draft
Auto-pay via credit card

The Wildfire Mitigation Plan combines several disciplines:

Vegetation management on a planned cycle, with priority near high-risk corridors
System hardening, including pole and crossarm upgrades and covered conductor in select areas
Underground conversions in highest-risk segments
Real-time SCADA monitoring of system conditions
Sparkless fuses on distribution circuits in elevated-risk zones
Public Safety Power Shutoff (PSPS) protocols when conditions warrant

A Public Safety Power Shutoff (PSPS) is a deliberate, temporary de-energization of specific power lines when predetermined conditions, including high wind, low humidity, or fuel dryness, make the risk of a line-caused ignition unacceptably high.

OTEC's PSPS communications system is built internally and reaches member-owners through:

SMS to your registered mobile number
Phone calls to your registered phone numbers
Email to your registered email address
Website updates at otec.coop
Social media alerts

Questions? Contact Us!

As we navigate the transaction, we will share updates as they are available. If you have questions about this project, call one of the office numbers listed on our website or email communications@otec.coop.

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OTEC’s Proposed purchase of Idaho Power’s Oregon Territory

Idaho Power’s Oregon Customers To Join Oregon Trail Electric Cooperative

Read the Joint Press Releases

Read the Mailer

Frequently Asked Questions

Why OTEC?

Your voice on the Board

Rates and the purchase price

Staffing, reliability, and service centers

Power supply

Wildfire safety

Help paying your bill

Staying informed

Other Frequently Asked Questions

Questions? Contact Us!

Baker City Office

John Day Office

Burns Office

La Grande Office

Office Hours

Contact

OTEC’s Proposed purchase of Idaho Power’s Oregon Territory

Idaho Power’s Oregon Customers To Join Oregon Trail Electric Cooperative

Read the Joint Press Releases

Read the Mailer

Frequently Asked Questions

Why is OTEC the right utility to serve this area rather than another buyer? What are the benefits?

Will current OTEC member-owners pay any part of the purchase price?

How many Board seats will represent transitioning member-owners, formerly Idaho Power customers?

Does OTEC have to change its bylaws first, and who votes on that?

When is the first election that includes transitioning member-owners, and could they run for a seat?

How did the OTEC Board of Directors decide how many directors each district gets?

Who votes for the Malheur District directors, and can transitioning member-owners vote for directors in the other districts?

How was the $154 million base purchase price determined?

Has the Commission considered a purchase like this before?

How is OTEC financing the purchase of Idaho Power's Oregon service territory?

What is a cost-of-service study? How will it inform future rates, and when will it be completed after closing?

How does OTEC’s reliability compare with Idaho Power’s? What will happen to outage restoration time after closing?

How will OTEC staff the acquired territory?

Which OTEC service center will serve my community?

Where will my power come from?

How do OTEC’s and Idaho Power’s wildfire mitigation practices compare?

How will OTEC coordinate wildfire safety and shutoffs with local fire agencies?

Will OTEC offer a bill discount program for transitioning member-owners?

Will current OTEC member-owners pay for, or be able to use, the bill discount program for the acquired territory?

What protections from disconnection will transitioning member-owners have in extreme weather?

Will OTEC offer free home energy audits?

Will OTEC continue energy efficiency programs in the acquired territory? What happens to the energy-efficiency funds Idaho Power collected from its Oregon customers?

How will I get important information from OTEC before closing?

Other Frequently Asked Questions

General

Current members

Transitioning member-owners

Programs for transitioning member-owners

Power supply

Transition plan

Wildfire mitigation

Transitioning member-owners protections at closing

Questions? Contact Us!

Baker City Office

John Day Office

Burns Office

La Grande Office

Office Hours

Contact