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Oregon Trail Electric Monitoring Case That Could Boost Power Rates by Jayson Jacoby East Oregonian, September 21, 2026

Oregonians for Affordable Hydropower, a nonprofit, criticized Oregon
Gov. Tina Kotek's participation in the lawsuit that led to the judge's order

Oregon Trail Electric Cooperative officials are monitoring the Bonneville Power Administration's request to increase its wholesale electric rates by 6.3%, which could lead to higher rates for OTEC's customers.

OTEC, the cooperative based in Baker City with about 25,000 member-owners in Baker, Union, Grant and Harney counties, buys all of its electricity from BPA, the federal agency that sells power produced at dams on the Columbia, Snake and other rivers to more than 300 customers in the Northwest.

Although changes in BPA wholesale prices can affect OTEC rates, it's not clear whether that would happen in this case, and if so by how much, said Shiraz Mukarram, communications manager for OTEC.

A decision in the BPA rate request is due Dec. 18, and any effect on OTEC rates wouldn't happen before early 2027, Mukarram said on Friday, Sept. 18.

"We're just going to have to wait for the details," Mukarram said.

Ultimately, he said, OTEC's nine-member board of directors would decide on any change in rates.

Mukarram said the cost of electricity from BPA amounts to almost half of OTEC's expenses -- about $27.2 million in 2025, according to a document OTEC filed with the Oregon Public Utility Commission earlier this year as part of its application to buy Idaho Power Company's Oregon service territory, primarily in Malheur County.

BPA's most recent wholesale increase was 10.8% starting Oct. 1, 2025. After BPA announced in December 2024 that rates would be rising, OTEC increased its rates by an average of 9.5% starting April 1, 2025. The cooperative cited BPA's wholesale rate hike, as well as rising costs for materials, transportation, fuels, labor and wildfire mitigation, in announcing the increase, OTEC's first since 2019.

OTEC cited the same factors earlier this year in announcing that rates would rise 4.4% starting April 1, 2026.

Mukarram said BPA's 2025 wholesale rate increase was supposed to be in effect until 2028, but that might not be the case now.

BPA officials, in requesting the 6.3% increase, cited U.S. District Court Judge Michael Simon's early March order that the agency spill more water over eight dams on the Columbia and Snake rivers rather than sending that water through the turbines that generate electricity.

The National Wildlife Federation, several tribes, and the states of Oregon and Washington were parties in the lawsuit. They argued the increase in water spills was needed to help salmon migrate to the Pacific Ocean.

In response, BPA contends it needs to raise wholesale rates to make up a $250 million shortfall resulting from the reduction in electric generation due to the judge's order.

Mukarram said OTEC's budget is based on BPA maintaining its rates and does not factor in a potential increase as BPA is requesting from a federal official.

Mukarram said OTEC belongs to organizations that will be lobbying federal officials on behalf of cooperatives in the BPA case.

"OTEC will have a chance to push back," he said.

OTEC cited the judge's decision in a post on the cooperative's Facebook page in late May, noting that "OTEC and 37 other Oregon cooperatives asked the Governor's office to sit down and talk about this. Twice. No response from the Governor."

BPA's rate increase request prompted a variety of reactions.

Oregonians for Affordable Hydropower, a nonprofit, criticized Oregon Gov. Tina Kotek's participation in the lawsuit that led to the judge's order.

Other groups, including environmental organizations, blame the Trump administration's decision last year to cancel a treaty, negotiated during the Biden administration, to deal with an ongoing lawsuit about protecting salmon.

That cancellation led to the request, which the judge approved, to require BPA to spill more water over the dams.