Why It Matters
Idaho Power, one of the region’s dominant utilities with deep roots in the Gem State, has taken a major step toward exiting the Oregon retail electricity market. The proposed transaction would shift roughly 20,000 Oregon customers to a member-owned cooperative — and spare those customers from a potential rate increase nearly three times larger than what the cooperative deal would require.
What Happened
Idaho Power and Oregon Trail Electric Cooperative, headquartered in Baker City, Oregon, have jointly filed with the Oregon Public Utility Commission seeking regulatory approval to transfer Idaho Power’s Oregon distribution system to the cooperative. The deal is valued at $154 million.
If the commission signs off, customers currently served by Idaho Power in Malheur, Harney, Baker, and Wallowa counties would become member-owners of OTEC rather than customers of an investor-owned utility. The transaction is targeted to close in early 2027.
Idaho Power would not exit Oregon entirely under the arrangement. The company would retain its generation and transmission infrastructure in the state, including a major regional transmission line connecting Boardman, Oregon, to Hemingway, Idaho. OTEC would purchase wholesale power from Idaho Power through a multi-year supply agreement to serve the newly acquired customers.
By the Numbers
- $154 million — total value of the proposed transfer
- ~20,000 — Idaho Power customers in four Oregon counties who would transition to OTEC membership
- 5.7% — approximate rate adjustment customers would face under the cooperative transfer
- 17%+ — rate increase Idaho Power says would likely be necessary if the sale does not proceed
- Early 2027 — targeted closing date for the transaction
Rate Relief for Rural Oregonians
Rising capital costs and inflation have driven up operating expenses throughout Idaho Power’s Oregon service territory. The utility has not raised base rates in that region since 2024, but officials say continuing on the current path without a rate adjustment is not financially sustainable.
The cooperative structure offers an alternative path. Rather than absorbing a potential rate hike of at least 17 percent, customers transitioning to OTEC would see an increase of roughly 5.7 percent above current rates — the cooperative’s cost of acquiring the system. Going forward, OTEC members would also gain voting rights in board elections and eligibility for capital credits returned to the membership, benefits that investor-owned utility customers do not receive.
Service continuity is expected throughout the review and transition period, with both companies committed to coordinating during regulatory proceedings.
Zoom Out
The move reflects a broader trend of investor-owned utilities reassessing rural service territories where infrastructure investment costs are high relative to customer density. Cooperative ownership has gained ground in several Mountain West and Pacific Northwest markets as a way to reduce rate pressure on rural consumers while keeping local control closer to the communities served.
For Idaho Power, the transaction allows the company to streamline its core operations while maintaining a financial stake in Oregon through its generation and transmission holdings — including the strategically important Boardman to Hemingway line that serves regional power flows across state lines. Idaho’s energy grid continues to evolve rapidly; the state is also home to federally supported advanced energy research, including efforts to transform the historic EBR-II site at Idaho National Laboratory into the nation’s first microreactor test bed.
What’s Next
The Oregon Public Utility Commission must formally review and approve the filing before any transfer can take effect. Both Idaho Power and OTEC have indicated they will cooperate throughout the regulatory process to demonstrate the transaction’s benefit to affected customers and the broader public interest.
Customers with questions about the proposed change can find additional information at Idaho Power’s dedicated Oregon transfer page or through OTEC’s website. No changes to service or billing will take place until the commission issues its decision and the deal formally closes.
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