News
5/17/2010
OTEC Annual Meeting Wrap Up
La Grande, Oregon – May 17, 2010 – Oregon Trail Electric Consumers Cooperative’s (OTEC) annual meeting of members was held Saturday, May 15, at the Blue Mountain Conference Center in La Grande, Oregon.
A large crowd of OTEC members enjoyed live music played by Al “Too Loud” MacLeod’s La Grande area band, “The Ruralites.” About 65 raffle gifts were given away during the course of the meeting. The opening door prize, a digital camera, was won by Daniel Harris of Prairie City; the grand prize winner, James and Kathy Turner of Baker City took home a Danby Portable air conditioner.
During the business portion of the meeting, Board President David Baum reflected on what it means to be a part of a cooperative. In doing so, he commented on how OTEC, a not-for-profit utility, was able to once again return Capital Credits to the membership. He also mentioned the benefits of being a cooperative and how cooperatives focus on the local area they serve. Specifically, Baum proudly stated that 24 $2000 scholarships were awarded to the youth in OTEC’s service territory.
Baum also took a moment to comment on the recent announcement that OTEC will construct a new facility in La Grande at the current OTEC Cove Avenue site. “It’s a much needed facility, and one that will put local people to work and keep local people employed,” said Baum.
In his report to the membership, Baum also eluded to challenges OTEC will face in the future, including rate pressures and the implementation of new technologies. He then introduced Werner Buehler, OTEC’s General Manager and Executive Vice President.
Buehler reflected on the benefits of being a member of a cooperative. “Unlike some government entities or the for profit utility companies, we want you to know what is going on with your power company.” Specific reference to early communication about the 2009 BPA rate increase, BPA’s inappropriate subsidy to the aluminum industry, and the BPA billing error that overcharged OTEC’s irrigation members were highlighted in his speech.
He also restated his commitment to the membership that OTEC will continue to be transparent with information. “Through Ruralite articles, radio shows, and even OTEC-TV we have been able to share with the membership the cost of various types of power generation and also what expenses are driving our wholesale power costs from BPA,” suggests Buehler. One specific item pointed out in his speech was that “fish and wildlife costs account for fully one third of our BPA power costs.”
The challenges facing OTEC in the future were also presented. “In the last 12 months, OTEC has seen its industrial sales to large consumers slide downhill about 26%,” explained Buehler. “This means that as OTEC’s wholesale power costs increase and as other operating costs increase, there most probably will be fewer and fewer kilowatt-hours or power sold over which to spread our fixed costs.”
A significant challenge for BPA, and thus OTEC, this year is the low water year. “BPA is forecasting a water year and corresponding electrical generation year which is about 65% of normal,” said Buehler. As a result, “insiders are discussing the probability of double-digit (wholesale rate) increases in the next rate period.” That rate period begins October 2011. Buehler committed to continuing to keep the membership informed.
Buehler also noted that OTEC has strong incentive to be supportive and active in economic development efforts in Eastern Oregon. Though he did warn, “we cannot afford economic development at any cost.”
From an operating cost perspective, Buehler assured the membership that OTEC will continue to search out sensible cost reductions and implement new technology which enables it to ‘work smarter and harder’.
Results of director elections were announced during the meeting as well. Dave Baum of Union County and Peggi Timm of Baker County were each re-elected for another three-year term. Greg Howard of Union County, who had been appointed to serve in the seat vacated by Stanley Weishaar’s passing, was elected to serve a three-year term. The lone ballot measure passed as well.
In addition, presentations were made by the 4 OTEC 2009 Youth Tour participants: Irene Ribeiro (Burns), Jake Reynolds (John Day), Samantha Fritz (North Powder), and Lee Hopper (La Grande). This is always a highlight of the meeting.
After the business meeting, attendees enjoyed a luncheon served by OTEC employees and members of the Imbler High School FFA. The meal was catered by Class Act Catering of La Grande.
In an effort to reach out to as many members as possible, this year’s annual meeting was also streamed live on the OTEC web site. The web site also featured a live Twitter feed. Following the annual meeting was a live wrap-up show on KBKR/KLBM in Baker City and La Grande (audio of that show is available on OTEC Radio).
If you are interested in the speeches from the meeting, they are available on the OTEC web site through OTEC-TV. Simply click on the OTEC-TV icon.
The OTEC Annual Meeting is held each year in May to conduct the business of the cooperative. OTEC is a nonprofit, member-owned utility serving four counties in Eastern Oregon.
