News
OTECC Lowers Rates to Large Power Members
Elgin, OR – October 22, 2008 – Oregon Trail Electric Consumers Cooperative (OTECC) announced that industrial class electric rates will decrease by 7.5% effective November 1, 2008. The announcement was made at the Timber Roundtable hosted by Congressman Greg Walden in Elgin.
In light of the current economic situation in the US and Eastern Oregon, the OTECC Board of Directors held an emergency Board meeting to consider the impact of rates on its industrial members. A recent Cost of Service Study conducted by the National Rural Utilities Cooperative Finance Corporation (NRUCFC) supported the rate decrease for the industrial rate class. This rate decrease aligns rates with cost of service.
Werner Buehler, OTECC General Manager, said, “OTECC has experienced diminishing industrial electric loads in recent years, and as a local organization focused on the viability of the local economies this has been a concern. Industrial consumers like Boise Cascade are generally large employers with good paying jobs that our communities can ill afford to lose.”
The OTECC Board of Directors reacted to the recent cost of service study in as timely manner as feasible. As a result of past co-gen contracts OTECC was required to purchase expensive “above market priced” power which, until their recent expiration, made it unreasonable to decrease rates. “The economics simply did not dictate that we could lower rates before now,” said Buehler.
A recent Residential Member Satisfaction Survey conducted by the National Rural Electric Cooperative Association (NRECA) also indicated that a majority of OTECC members were willing to support cash for economic development. Although this rate decrease is not a direct cash contribution it is the first step in an economic development process.
“It is very important that we do everything we can to keep our industrial base healthy. If the industrial base should continue to decline the impact to the local economies and electric rates to other rate classes would be less than desirable,” explained Buehler.
This rate decrease to the industrial class comes on the heels of a 0.68% rate reduction reflected in the Power Cost Adjustment (PCA) for all members. The PCA became effective October 1, 2008.
“The ability of the Board to react to the current economic climate, the cost of service study, and the needs and wishes of its members is what makes a non-profit member owned cooperative so unique,” said Buehler. “At a time when energy costs are rising, the economic future is uncertain, and people are worried about jobs, it’s great to be able to react prudently.”
For additional information about the Oregon Trail Electric Consumers Cooperative please visit www.otecc.com.
OTECC Lowers Rates to Large Power Members |
News articles are available for download and require Adobe Reader; click on the "Get Adobe Reader" icon below to
download the Adobe Reader, and then click on the news article to download.
