OTEC Returns $3 Million to Members, Strengthening Local Economy

The Oregon Trail Electric Cooperative Board of Directors approved a $3 million retirement of capital credits on December 10, 2025, continuing a long running practice of returning cooperative margins to members. This is the 29th consecutive year OTEC has retired capital credits for its membership. Since its founding, the cooperative has returned a cumulative $61 million to member owners and the communities it serves.

Capital credits are the cooperative equivalent of profits that are allocated to members based on their electricity usage when annual income exceeds expenses. OTEC allocates those margins to member accounts, reinvesting the funds for a period to fund system upgrades, new equipment, technology improvements, and infrastructure maintenance. That reinvestment reduces the need for interest bearing loans and helps keep operating costs and electric rates lower for members.

The 2025 distribution will be handled in two ways depending on account status and amount. If the retirement amount is $150 or less, or if an account is past due or has an unpaid bad debt balance, a credit will be applied to the account. For amounts in excess of $150, checks will be issued to members whose accounts are in good standing. Capital credit checks will be mailed by the end of the year. Members with questions can visit otec.coop for more information.

OTEC serves nearly 60,000 residents across four counties in Eastern Oregon and is headquartered in Baker City with district offices in Burns, John Day, and La Grande. Returning capital credits not only benefits individual households by reducing utility bills or providing cash receipts, it also circulates capital within local economies, supporting small businesses and community spending.

For Baker County, the annual retirement reinforces the cooperative model of member economic participation and reflects steady financial management by OTEC leadership. As the cooperative continues to invest in its grid and technology, the dual practice of reinvesting margins and periodically returning capital to members helps balance long term system resilience with near term economic benefits for residents.