Idaho Power files to transfer Oregon service area to electric cooperative

Idaho Power and Oregon Trail Electric Cooperative have filed with the Oregon Public Utility Commission requesting approval to transfer ownership of Idaho Power‘s Oregon distribution system to the Baker City-based cooperative in a deal valued at $154 million.

If approved, roughly 20,000 Idaho Power customers in Malheur, Harney, Baker and Wallowa counties would become member-owners of Oregon Trail Electric Cooperative, known as OTEC. The transaction is expected to close in early 2027.

OTEC currently serves customers in Baker, Union, Grant and Harney counties. The acquisition would expand its service territory to include the four additional Oregon counties where Idaho Power now operates.

Under the proposed agreement, Idaho Power would exit the Oregon retail electricity market but would retain ownership of generation and transmission assets in the state, including the Boardman to Hemingway transmission line, which carries power across Idaho, Oregon and the broader region. OTEC would purchase wholesale energy from Idaho Power under a multi-year power supply agreement to serve its new members.

The filing comes as rising capital investments and inflation have driven up service costs in Idaho Power’s Oregon territory. The company has not raised base rates there since 2024 and said it would likely need to pursue a rate increase of at least 17% if the sale does not proceed.

Under the proposed transfer, former Idaho Power customers would face a smaller adjustment of approximately 5.7% above their current rates upon transaction approval as OTEC recovers the cost of the system it is purchasing.

Customers in eastern Oregon would continue receiving service throughout the transition, and as cooperative members would gain a vote in board elections and eligibility for capital credits returned to the membership.

The Oregon Public Utility Commission must approve the agreement before it can take effect. Idaho Power and OTEC said they will work together during the regulatory review to ensure continuity of service. More information is available at idahopower.com/Oregon and otec.coop/IdahoPower.

This story was written using artificial intelligence with human oversight.